Exam 4: Demand and Supply

Consider the market for peanut butter.If there is a decrease in the price of deli turkey slices (a substitute in consumption for peanut butter)along with a decrease in the price of peanut brittle (a substitute in production for peanut butter), the

Suppose that over the next few years the demand for dancing to country and western music decreases.Hence, at country and western dance clubs the equilibrium price of admission ________ and the equilibrium quantity of dancing ________.

-In the above figure, the shift in the supply curve from S to S₂ reflects

When the demand for blue jeans increases, what happens next?

Candy makers accurately anticipate the increase in demand for candy for Halloween so that the supply of candy and demand for candy increase the same amount.As a result, the price of candy ________ and the quantity of candy ________.

-The table above shows the situation in the gasoline market in Tulsa, Oklahoma.If the price of a gallon of gasoline is $3.73, then

-The above figure illustrates the market for corn.If point "a" represents the original equilibrium and point "b" the new equilibrium, which of the following could have caused the change?

The demand for oranges increases while the supply decreases.The equilibrium price of oranges ________, and the equilibrium quantity ________.

Which of the following does NOT increase the supply of personal computers, that is, does NOT shift the supply curve of personal computers?

-The above figures show the market for HD televisions.If more firms start to produce HD televisions , which figure shows the effect of this change?

-The above figures show the market for HD televisions.If research is published showing that watching HD television shows causes eye damage, then which figure shows the effect of this change?

-In the figure above, a price of $15 per dozen roses results in

If there is a surplus of a good, the quantity demanded is ________ the quantity supplied and the price will ________.

If an early frost destroys most of the apple crop, the equilibrium price of an apple ________ and the equilibrium quantity ________.

The market demand curve for mangos is

Suppose that the price of lettuce used to produce tacos increases.This change means that the equilibrium price of a taco ________ and the equilibrium quantity ________.

What leads to a decrease in the quantity demanded of a good or service?

Computer chips are a normal good.Suppose the economy slips into a recession so that income falls.As a result, the demand for computer chips ________ so that the price of a computer chip ________.

-The table above shows the situation in the gasoline market in Tulsa, Oklahoma.If the price of a gallon of gasoline is $3.62, then

Suppose that the price of flour used to produce bagels increases.Hence the equilibrium price of a bagel ________ and the equilibrium quantity ________.