Exam 3: Demand and Supply

If macaroni and cheese is an inferior good and an increase in consumer income occurs,then which of the following statements is TRUE?

In economic terminology,an inferior good is a good or service for which ________.

The market demand curve for a commodity is found by

If a particular good or service is an inferior and an increase in consumer income occurs,ceteris paribus,which of the following statements is FALSE?

Table 3-1 -In Table 3-1,if the price is increased from $16 to $18,ceteris paribus,market quantity demanded will fall by ________ units.

Explain the relationship between the money price of a good and its relative price.

Figure 3-4 -In Figure 3-4,there would be a surplus at which price?

Figure 3-1 -In Figure 3-1,if both A and B are normal goods,the effect of an increase in income is best shown by the

Table 3-1 -In Table 3-1,if Buyer 2 leaves the market,what market quantity would be demanded at a price of $10?

Explain why there normally would be a direct relationship between price and quantity supplied.

The excess supply of spaces for potential students in the early 1990s at Canadian universities would probably have disappeared if

In determining the demand for a good,economists

We observe that people buy less steak and more hamburger when the relative price of steak increases.This indicates that steak and hamburger are

Figure 3-2 -In Figure 3-2,a surplus exists in the gasoline market when the price is

Table 3-3 -In Table 3-3,at a price of $2 per unit,

The cause-and-effect relationship between quantity supplied and price is usually

An expected increase in the price of a good next month is likely to

After a fall in the price of songs downloaded from the Internet,Phil purchases fewer CDs and buys a new MP₃ player.For Phil,

Suppose that the price of corn was above its equilibrium price.Ceteris paribus,we would expect to see

In economic terminology,a normal good is a good or service