Exam 3: Demand and Supply

Many Southern farmers face a choice between planting peanuts or cotton.In 2011,farmers anticipated higher prices for cotton.In the market for peanuts in 2011,there would be ________ in the supply of peanuts,which leads to ________ in the price of peanuts and ________ in the quantity of peanuts.

Oatmeal is a normal good and cold cereal is a substitute for oatmeal.Raisins are a complement for oatmeal.Which of the following increases the demand for oatmeal?

During the last decade,the price of a computer fell every year and the quantity sold increased every year.This experience suggests that the

A technological improvement lowers the cost of producing coffee.At the same time,consumers' preferences for coffee increase.The equilibrium price of coffee will

Jeep Cherokees are a normal good.If people's incomes increase,the direct result will be

-The figure above shows the demand for fruit snacks.Which movement reflects how consumers would react to an increase in the price of a non-fruit snack?

-Which of the following decreases the supply of restaurant meals?

The "law of demand" states that changes in

If the quantity of textbooks supplied is 10,000 per year and the quantity of textbooks demanded is 8,000 per year,there is a ________ in the market and the price will ________.

During the last decade,the price of shoes rose substantially yet people bought more pairs of new shoes each year.This experience suggests that the

Which of the following leads to a movement along the demand curve for spinach but does not shift the demand curve for spinach?

Inferior goods are those for which demand increases as

-The above figures show the market for hamburger meat.Which figure(s) shows the effect of a new report by the U.S.Surgeon General that beef consumption is healthier than previously believed?

Wages for workers producing iPods and similar products will rise next year.Walkman Watch asks you to predict the effect of this change in next year's market for iPods.You predict that the major effect will be that the

In 2011,the price of peanuts was rising,which lead peanut butter sellers and peanut butter buyers to expect the price of peanut butter would rise in the future.Suppose the effect on the sellers was larger than the effect on the buyers.Consequently,in the current market for peanut butter there is a ________ in the price of peanut butter and ________ in the quantity of peanut butter.

"The recent hurricanes in Florida are bringing financial gain to California citrus growers.Due to extensive damage to the Florida citrus crop,California citrus products are commanding their highest prices ever." Which of the following statements best explains the economics of this quotation?

Which of the following statements is correct?

An increase in the incomes of baseball fans in New York leads to a rightward movement along the demand curve but does not shift the demand curve for Yankees tickets.

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

Price (dollars per pound) Quantity supplied (pounds) Quantity demanded (pounds) 3 1 7 4 2 5 5 4 4 6 5 2 7 6 1 -The above table shows the demand schedule and supply schedule for chocolate chip cookies.What is the equilibrium quantity and equilibrium price for chocolate chip cookies?