Exam 4: Demand and Supply

During 2008 the supply of gasoline decreased while at the same time the demand for gasoline increased. If the magnitude of the increase in demand was greater than the magnitude of the decrease in supply, then the equilibrium price of gasoline ________ and the equilibrium quantity ________.

The price of cotton clothing falls. As a result,

-The above figure shows the market for game day t-shirts. If the price of t-shirts is $10, then

Assume a competitive market is in equilibrium. There is an increase in demand, but no change in supply. As a result the equilibrium price ________, and the equilibrium quantity ________.

Because of a sharp increase in the price of gasoline, the demand for Sports Utility vehicles (SUVs)has decreased. So, the high price of gasoline leads to a

-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?

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

Mulch is shredded wood and is a by-product in the production of lumber. Because these two goods are produced together, they are

Which of the following statements is true about a competitive market? A competitive market

Suppose the current price of a pound of steak is $6 per pound and the equilibrium price is $9 per pound. What takes place?

If both producers and consumers believe that a product's price will rise in the future, then at the present, demand ________ and supply ________.

For consumers, computers are a complement to computer software. Suppose the price of a computer falls. Simultaneously, suppose that the number of companies selling computer software decreases. How do these changes affect the price and quantity of computer software?

Which of the following increases the demand for a good?

-The graph illustrates the demand curve for soda. After a rise in the price of a soda from $1.00 a can to $2.00 a can, the quantity of soda demanded

The downward slope of a demand curve

Ramen noodles are a staple food item for many college students. Ramen noodles are very inexpensive, easy to prepare, and can be combined easily with other foods. After students graduate, find employment, and earn a higher income, they decrease their Ramen noodle purchases significantly. In this case, Ramen noodles are

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

The number of buyers of sport utility vehicles, SUVs, decreases sharply. So the

-The above figure shows the market for laptops. Which of the following causes a movement from B to A?

Which of the following increases the demand for a good or service?