Exam 3: Demand, Supply, and Price

Consider the global market for barley,an agricultural commodity.Suppose that in August,2014,the equilibrium price and quantity were P = $150 per tonne and Q = 350 million tonnes.In August,2015,the equilibrium price and quantity were P = $142 per tonne and Q = 335 million tonnes.Which of the following is the best possible explanation for this change in market equilibrium?

FIGURE 3-4 -Refer to Figure 3-4.If the price of 1-bedroom apartments in Collegetown were $300,there would be a ________ of ________ apartments.

"Excess demand" can also be described as

A normal good is one

Which of the following events would result in a change in the quantity demanded for some commodity but NOT a change in the demand for that commodity?

FIGURE 3-3 -Refer to Figure 3-3.At a price of P₃ there is excess ________ in the market for X and pressure for the price to ________.

With a given upward-sloping supply curve for sirloin steak (a normal good),a rise in household income will cause the

FIGURE 3-1 -Refer to Figure 3-1.If demand is given by the curve D,the ________ energy-efficient light bulbs is at a price of $9.

If a demand curve and a supply curve can be stated functionally as Q_d = 500 - 0.1P and Q_s = 440 + 0.4P,respectively,then the equilibrium quantity and price (Q,P)would be

The supply and demand schedules for the umbrella market are given below: TABLE 3-2 -Refer to Table 3-2.At a price of ________ there would be an excess ________of 150 umbrellas.

Suppose that the demand curves for goods A,B,and C have the following functional forms:,where Q denotes quantity demanded and P denotes price: Q_A = 120 - 3.5 P_A - 6P_B Q_B = 100 - 2P_B + 3P_C Q_C = 1500 - 0.5P_C. Based on these demand curves,which of the following pairs of goods are known to be complements?

The supply and demand schedules for dozens of roses are given below: TABLE 3-1 -Refer to Table 3-1.At a price of ________ there would be an excess ________ of 300 dozen roses.

Consider a negatively sloped demand curve for natural gas.If the supply of natural gas increases,the new equilibrium will have

The quantity exchanged in the market will be below the equilibrium quantity

The "law of demand" hypothesizes that,other things being equal,

Suppose the demand and supply curves in the market for apples have the following functional form: Q_D = 250 - 4p and Q_S = 10 + p.If the prevailing market price is 40,then

If goods X and Y are substitutes and the price of X falls,all other things being equal,the demand curve for Y will

Goods X and Y are defined to be substitutes in consumption if

Which of the following pairs of goods are likely to be complements for a large group of consumers?

FIGURE 3-2 -Refer to Figure 3-2.If the supply curve is given by S,the ________ energy-efficient light bulbs is 175 000 when the price is $9.