Exam 3: Demand and Supply

Which of the following increases the demand for a normal good?

The initial supply and demand curves for a good are illustrated in the above figure.If there is a rise in the price of a factor of production used to produce the good,then the new equilibrium price

An increase in demand combined with no change in supply

During the mid-2000s,the average price of a used car fell by nearly $500 and the quantity sold nation-wide decreased by several thousands each year.This set of results is a contradiction of the law of demand.

Based on the above figure,which of the following is true?

If the price of a movie download falls,the rental rate of DVDs ________ and the equilibrium quantity of DVDs rented ________.

You can buy a season ticket to the Metropolitan Opera for $800. A season ticket plan to see the New York Knicks is $1600. Which of the following is a correct statement?

A decrease in the expected future price of cars

If the price of a CD is equal to the equilibrium price,there will be ________ of CDs and the price will ________.

If the supply of bottled water decreases and at the same time the demand for bottled water increases,the equilibrium price ________ and the equilibrium quantity ________.

-The above figure shows the market for oil.Because of the development of a new deep sea drilling technology the

Price (dollars per pound of cat food) Quantity demanded (tons of cat food per year) Quantity supplied (tons of cat food per year) 1.00 52 15 1.50 46 26 2.00 43 34 2.50 40 30 3.00 35 44 -The above table gives the demand and supply schedules for cat food.If the supply increases by 20 tons at every price,what is the new equilibrium price and quantity?

The demand curve for a normal good shifts leftward if income ________ or the expected future price ________.

In early 2009 the price of computer memory chips rose.In a demand and supply model,shifts in what curve(s) could have brought about the higher price?

Between 2001 and 2010,equilibrium college tuition rose from $15,000 to $21,000 and equilibrium enrollment increased from 16 million to 21 million students. These changes could be the result of

-The above figure shows the market for bicycles.When there is a physical fitness craze so that everyone wants to exercise the

To say that "supply increases" for any reason,means there is a

Young drivers often buy used cars.An increase in the legal driving age to twenty-one would result in a leftward movement along the demand curve for used cars,whereas lowering the age to fifteen would result in a rightward movement along the demand curve.

-The above figures show the market for gasoline.Which figure(s) shows the effect of a freezing cold winter which drives up the price of home heating oil (a substitute in production for gasoline because each is made from crude oil)?

When the demand for a good decreases,its equilibrium price ________ and equilibrium quantity ________.