Exam 3: Demand and Supply

-Refer to the above figure.Suppose that Cheerios and Apple Jacks are substitutes.Which diagram shows the effect on the demand for Cheerios when the price of Apple Jacks cereal has increased?

Which of the following will shift the supply curve for laptop computers to the left?

The price of bread in terms of gallons of milk per loaf is 0.6 and the price a gallon of milk in terms of pounds of butter per gallon is 1.2.What is the relative price of bread to butter?

Price per CD Quantity of DVDs Demanded per Month Quantity of DVDs Supplied per Month \ 20 500 9000 18 1000 6000 16 1500 4500 14 2000 3500 12 2500 2500 10 3000 1500 8 3500 800 6 4000 100 -According to the above table,at a price of $16 per DVD,there is

Price per CD Quantity of DVDs Demanded per Month Quantity of DVDs Supplied per Month \ 20 500 9000 18 1000 6000 16 1500 4500 14 2000 3500 12 2500 2500 10 3000 1500 8 3500 800 6 4000 100 -According to the above table,there is an excess quantity demanded of 1500 DVDs at the price

The price of a commodity in terms of another commodity is

Market clearing price

When McDonald's runs a special for hamburgers reducing the price of Big Macs to $0.99 with all other factors held constant

-Refer to the above figure.Moving from point A to point B indicates

An excess quantity supplied can be corrected by

Which of the following is an example of the law of demand?

Gasoline prices in the United States decreased significantly between 2008 and 2009.A decrease in the price of gasoline,holding other things constant,will cause which of the following to occur?

Total market demand can be calculated by

In deriving the demand schedule for a good,economists assume that

Price per Constant- Quality Unit Quantity Demanded of Constant-Quality Units per Year Quantity Supplied of Constant-Quality Units per Year \ 1.00 1,000 200 2.00 800 400 3.00 600 600 4.00 400 800 5.00 200 1,000 -According to the above table,at a price of $2 per unit,which of the following would exist?

Which of the following is NOT a determinant of demand?

The equilibrium or market clearing price occurs at the point at which

-Refer to the above figure.The rightward shift of the curve could have been caused by

A decrease in supply will occur when

The fact that when the price of a good goes up,people buy less of it is known as the