Exam 3: Demand and Supply

Four points on a demand schedule are given: $12, 2 units; $10, 1 unit; $15, 1.5 units; and $2, 4 units. Which combination is inconsistent with the law of demand?

Demand applies to which of the following?

The price of a new textbook increases from $120 to $160, while the price of used copies of the textbook increased from $80 to $100. Other things being equal, we would expect

Which of the following illustrates the law of demand?

All of the following cause a shift in the demand curve EXCEPT a change in the

-In the above figure, when the price of Good B increases, the result can be shown by

Which one of the following would cause an increase in the supply of cardboard?

When there is a shortage I. there is a tendency for price to increase. II. there is an excess quantity demanded.

Which of the following statements is FALSE?

The market demand curve for a particular good

-Refer to the above figure for a particular good. The rightward shift of the curve could have been caused by

An increase in demand for a good can be caused by

If the price of apples goes down, then the demand for pears will

Which of the following would likely cause an increase in the supply of single-serve coffee makers?

If the price of oil rises, producers of oil will

A shortage creates a situation that forces prices to ________ while a surplus creates a situation that forces prices to ________.

-Refer to the above figure. A movement from point A to point B for a good is most likely a result of

Which one of the following statements is TRUE?

If two goods are substitutes, then

Other things being equal, an increase in the price of a good leads to a decrease in the amount people purchase. This is known as