Exam 3: Part 1: Market Demand and Supply

The law of demand indicates that as the price of a good increases:

How will an increase in lumber prices influence the home construction market?

Which of the following pairs of goods would be considered substitutes?

Assuming that bus travel is an inferior good,a decrease in consumer income,other things being equal,will cause:

To finance medical care,the federal government raises the tax per pack paid by sellers of cigarettes.Other things being equal,the price of cigarettes rises because of a(n):

If tofu is a normal good,an increase in income will:

Under the law of demand,any increase in price will cause ____ in quantity demanded.

If butter is a substitute for margarine,then an increase in the price of butter would be most likely to cause:

Sugar and honey are viewed as substitutes for each other in many cooking applications.If the price of sugar rises,we would expect the:

The supply schedule shows the specific quantity of a good that suppliers are willing and able to:

Which of the following will not cause a shift in the demand curve for good X?

The law of supply states that:

Exhibit 3-5 Supply for Tucker's Cola Data -In reference to Exhibit 3-5,assume the price of Tucker's Cola is $1.00 per gallon.If the price were to rise to $3.00 per gallon,and all other factors,such as taxes,etc.remained constant,the result would be a(n):

Which of the following must be true if good X is a normal good and income increases?

According to the law of supply,there is a direct relationship between quantity supplied and:

If Congress decides to reduce the tax per pack paid by sellers of cigarettes,other things being equal,the price of cigarettes will fall.This fall in prices can be attributed a(n):

Which of the following will cause the demand curve for a good to shift to the right?

Three of the four events described below might reasonably be expected to shift the demand curve for beef to a new position.One would not shift that demand curve.The single exception is a(n):

If a surplus of a product currently exists in the market,

Assuming coffee and tea are substitutes,a rise in the price of coffee will have which of the following effects on the market for tea?