Exam 4: Demand and Supply

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 ________.

Market equilibrium occurs when

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

-The above figure shows the market for game day t-shirts. If the price of t-shirts is $12, then

When does a surplus occur?

-The graph illustrates the demand for peanuts.Peanuts are a normal good because the

-In an effort to protect endangered species from the effects of logging in America's national forests, the federal government passes a law prohibiting logging in most of the state of Washington.Which of the figures above best illustrates the effect of this new law?

Consumers regard Dell computers and Apple computers as substitutes.If the price of a Dell computer decreases, the

Suppose a medical study reveals new benefits to consuming beef and at the same time a bumper corn crop reduces the cost of feeding steers.The equilibrium quantity of beef will

-In the above figure, an increase in cost of the cheese used to produce pizza

What are substitutes in production?

-A construction boom occurs and many of the new buildings need plywood for their framing.Which of the figures above best illustrates this change?

-The above figures show the market for HD televisions. If the price of the LCD screens used to produce these televisions falls, which figure shows the effect of this change in price?

If macaroni and cheese is an inferior good, then a decrease in income results in

An increase in the number of fast-food restaurants

The "law of demand" indicates that if the University of Maine increases tuition, all other things remaining the same

If the automobile worker's union successfully negotiates a wage increase for its members, how does the wage hike affect the supply of automobiles?

The "quantity demanded" of any good or service is ________ during a specified time period and at a specified price.

At prices above the equilibrium price, what occurs?

The initial equilibrium price in the market for Web pages is $200 per page and 1000 Web pages are created in a month.Many new Web design firms now enter the market.As a result,