Exam 3: Demand and Supply

Networks increase the price they charge cable television firms for programming. As a result, the price of cable television rises. Choose the correct statement.

Figure 3.2.1 Use the figure below to answer the following questions. -Which one of the following statements best characterizes point B in Figure 3.2.1?

The kitchen manager at an Italian restaurant is deciding what assignments he should give to his two cooks, John and David. John can make 25 pizzas or 40 servings of pasta per hour and David can make 20 pizzas or 30 servings of pasta per hour. Which is the manager's best choice?

Table 3.5.3 Demand and supply schedules for designer sport t-shirts at CoolU Use the table below to answer the following questions. -Refer to Table 3.5.3. A new store opens up on the edge of campus, Great Wild North Sportswear, which has the capacity to do as much business as all the existing businesses. The quantity of t-shirts supplied doubles at each price. The new equilibrium price is $________ and the new equilibrium quantity is ________ t-shirts per month.

Good A is a normal good if

Figure 3.2.2 Use the figure below to answer the following questions. -Refer to Figure 3.2.2. If consumers' income increases,

Which one of the following correctly describes how price adjustment eliminates a shortage?

Which one of the following correctly describes how price adjustment eliminates a surplus?

The income effect influences food purchases because when the price of a certain food rises, other things remaining the same, ________. Consumers ________.

Table 3.5.2 Demand and Supply Schedules for Cups of Coffee each day at CoolU Use the figure below to answer the following questions. -Refer to Table 3.5.2. A premature frost destroys half the coffee trees. This change would be represented as a

People buy more of good 1 when the price of good 2 rises. Good 1 and good 2 are

Tom and Don have different opportunity costs of producing two goods. If Tom and Don specialize in producing the goods in which each has a comparative advantage and they exchange goods, then

The y- axis intercept of the supply curve is 40 and the slope is 6. The equation of the supply curve is

All grapefruit juice producers have decided to blend tangerine juice with grapefruit juice. This blend results in a higher cost of production, but studies show that consumers prefer the taste of the blend to straight grapefruit juice. What will happen to the equilibrium price and quantity of grapefruit juice?

Figure 3.5.2 Original equilibrium at 1. Use the figure below to answer the following questions. -Refer to Figure 3.5.2, which represents the market for beans. If the price of peas, a substitute for beans and a substitute in production, rises, what is the new beans equilibrium, ceteris paribus?

A decrease in quantity demanded is represented by a

Figure 3.2.2 Use the figure below to answer the following questions. -Refer to Figure 3.2.2. Which one of the following represents a decrease in quantity demanded?

Figure 3.5.2 Original equilibrium at 1. Use the figure below to answer the following questions. -Refer to Figure 3.5.2, which represents the market for beer. If the price of pizza, a complement of beer rises, what is the new beer equilibrium, ceteris paribus?

Figure 3.4.1 Use the figure below to answer the following questions. -At price P₂ in Figure 3.4.1, which one of the following is not true?

Figure 3.5.1 Use the figure below to answer the following questions. -If the demand curve is D₂ in Figure 3.5.1,