Exam 3: Demand and Supply

The "other things" constant when we examine the effects of prices on quantities demanded do NOT include

In 2007,the price of gasoline in Canada was higher than it had been in 2006.Also in 2007,more gasoline was purchased in Canada than had been in 2006.According to the law of demand,higher prices cause lower quantities demanded,not higher.Use graphs to explain what might have happened to bring about a higher price and a higher quantity sold in 2007 than in 2006 if the supply and demand curves had their normal shapes.

Figure 3-5 -According to Figure 3-5,market equilibrium for CDs is at point

Using a graph to help you,explain the difference between a consumer's"want" for and her "demand" for a good or service.

Explain what inferior goods are and give an example of an inferior good.

Figure 3-5 -Suppose a change takes place and as a result the new equilibrium is at A in Figure 3-5.This change could have been caused by

The quantity supplied of a particular good is the amount of the good that

The relative price of a good is its price

An increase in consumer income would lead to which of the following for a normal good? I.a movement along the demand curve II.an outward shift in the demand curve III.an increase in supply

Figure 3-2 -According to Figure 3-2,at a price of $0.30/litre,there would be

Suppose that the demand curve for apples is downward sloping,and that with other things remaining equal,the price per tonne increases from $234 to $244.We would then expect

Bill quits his job to pursue an MBA degree full time.Tickets for the theatre fall in price,but he does not renew his season tickets for the new season.Bill's decision not to renew is most likely due to

Which of the following is most likely to be an example of the law of demand in action?

Table 3-4 -According to Table 3-4,there is an excess demand of 1500 CDs at price

There is an increase in the quantity of cream demanded when the price of coffee falls.If other things have remained constant,we can conclude that coffee and cream are

Figure 3-6 -In Figure 3-6 the shift from S₂ to S₁ would be

Using a graph to help you,explain the usefulness of the concept of market equilibrium in answering "what would happen if?" questions in economics.

An increase in perks offered to potential college students could be the result of

Not long ago the papers announced that there was a surplus of apples produced in the Okanagan Valley of British Columbia.Explain how there can be surpluses in a world of scarcity.

Using graphs,explain the difference between a change in demand and a change in quantity demanded.