Exam 3: Demand and Supply

Suppose we observe a fall in the price of good A and a decrease in the quantity of good A bought and sold.Which one of the following is a likely explanation?

Some producers are chatting over a beer.Which one of the following quotations refers to a leftward shift of the supply curve?

If demand increases and supply decreases, then the

Use the information below to answer the following questions. Fact 3.5.1 The market for coffee is initially in equilibrium. Pepsi is a substitute for coffee; cream is a complement of coffee. Consider the market for coffee. Assume that all ceteris paribus assumptions continue to hold except for the event listed. -Refer to Fact 3.5.1.An increase in the price of Pepsi, a substitute for coffee will

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

If A and B are substitutes and the cost of a factor of production used in the production of A increases, then the price of

Use the table below to answer the following questions. Table 3.4.1 -In Table 3.4.1, the equilibrium price is

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

Which of the following will definitely result in an increase in the equilibrium price?

How many sides does a market have?

Use the figure below to answer the following questions. Figure 3.4.2 -Refer to Figure 3.4.2.When the price is $10 a unit,

If A and B are complements in production and the price of A falls, the supply of B

Which market is an example of a market for factors of production?

Suppose we observe a rise in the price of good A and an increase in the quantity of good A bought and sold.Which one of the following is a likely explanation?

Use the figure below to answer the following questions. Table 3.5.2 Demand and Supply Schedules for Cups of Coffee each day at CoolU -Refer to Table 3.5.2.Professor Hyper publishes a new study, showing that coffee raises the test performance of students.Students double their demand for coffee and the quantity of coffee demanded at each price doubles.In addition, a premature frost destroys half the coffee trees and the supply of coffee is cut in half.The new equilibrium price is $________ and the new equilibrium quantity is ________ cups a day.

The relative price of a good is all of the following except

Which one of the following will definitely lower the equilibrium price?

Use the table below to answer the following questions. Table 3.1.1 -Refer to Table 3.1.1.In 2012, the relative price of coffee in terms of tea is

If a producer can use its factors of production to produce either good A or good B, then a rise in the price of A

Use the figure below to answer the following questions. Table 3.5.2 Demand and Supply Schedules for Cups of Coffee each day at CoolU -Refer to Table 3.5.2.If the price is set at $1.30 per cup, there is ________ leading to a price ________.