Exam 3: Demand and Supply

Price Per Tablet Quantity Demanded Per Month Quantity Supplied Per Month \ 800 2,000 12,000 750 3,000 11,000 700 4,000 10,000 650 5,000 9,000 600 6,000 8,000 550 7,000 7,000 500 8,000 6,000 450 10,000 4,000 -Refer to the above table.The equilibrium price of tablets is

After the price of music downloads falls,Phil buys fewer CDs and buys a new MP3 player.For Phil,

Which of the following statements is consistent with an increase in supply?

A change in any of the ceteris paribus conditions for demand leads to a

Price Per Tablet Quantity Demanded Per Month Quantity Supplied Per Month \ 800 2,000 12,000 750 3,000 11,000 700 4,000 10,000 650 5,000 9,000 600 6,000 8,000 550 7,000 7,000 500 8,000 6,000 450 10,000 4,000 -Refer to the above table.There is an excess quantity supplied of 2,000 units at a price of

The market supply curve can be derived by

A surplus exists

When there is an excess quantity supplied,

When economists talk about a demand schedule for a product,they mean

-Refer to the above figure.A movement from Point A to Point B is caused by

Other things being equal,an increase in the price of a good leads to an increase in the amount produced.This is known as

-Refer to the above figure.A shortage will exist when

A change in quantity demanded

Which of the following best represents the law of demand?

Other things being equal,the relationship between price and quantity supplied is

At the market clearing price,

If the demand of a good is inversely related to income,it must be

There will be an increase in supply when

"A shortage is the same thing as scarcity." Do you agree or disagree with this statement? Why? What can cause a shortage to disappear in a market? What can cause scarcity to disappear?

-Refer to the above figure.Corn is an input for producing Corn Flakes.Which diagram shows the effect on the supply of Corn Flakes when the price of corn has increased?