Exam 3: Demand, Supply, and Market Equilibrium

A good whose demand is inversely related to income is a(n)

Suppose the demand for books goes down when the price of video games goes down. We can say that these two goods are

Refer to the information provided in Figure 3.8 below to answer the following questions. Figure 3.8 -Refer to Figure 3.8. Assume that there are only two people in the market for baseball caps: Alex and Ryan. Along the market demand curve for baseball caps, at a price of ________, quantity demanded would be ________.

Refer to the information provided in Figure 3.11 below to answer the questions that follow. Figure 3.11 -Refer to Figure 3.11. Assume hamburgers and hot dogs are substitutes. A decrease in the price of hot dogs will cause a movement from

The price of mozzarella cheese, which is used in making pizza, increases. In the market for pizza you would expect that

Refer to the information provided in Figure 3.12 below to answer the questions that follow. Figure 3.12 -Refer to Figure 3.12 The market is initially in equilibrium at Point A. If demand shifts from D1 to D2, the new equilibrium price will be ________ and the new equilibrium quantity will be ________.

Suppose that video game discs are a normal good. If the income of video game players increases, you predict that in the market for video games,

In response to news reports that taking aspirin daily can reduce an individual's risk of a heart attack, there will most likely be a(n)

Refer to the information provided in Figure 3.14 below to answer the following questions. Figure 3.14 -Refer to Figure 3.14. A decrease in quantity supplied is represented by a movement from

A change in income, preferences, or prices of other goods or services leads to a ________ that causes a ________.

Michael Dell was the first individual who sold computers by mail order. The company founded by Dell is now one of the largest and most successful computer companies in the United States. Michael Dell would be classified as a(n)

Refer to the information provided in Table 3.1 below to answer the questions that follow. Table 3.1 Price per Pizza Quartity Dernanded (Pizzas per Month) Quartity Supplied (Pizzas per Month) \ 3 1,200 600 6 1,000 700 9 800 800 12 600 900 15 400 1,000 -Refer to Table 3.1. If the price per pizza is $3, the price will

If price is above the equilibrium, then quantity supplied will be greater than quantity demanded, putting downward pressure on price.

Refer to the information provided in Figure 3.13 below to answer the questions that follow. Figure 3.13 -Refer to Figure 3.13. The market is initially in equilibrium at Point B. If supply shifts from S2 to S1, the new equilibrium price will be ________ and the new equilibrium quantity will be ________.

Firms are organizations that

When the decrease in the price of one good causes the demand for another good to decrease, the goods are

An entrepreneur is a person who does all of the following EXCEPT

Related to the Economics in Practice on page 69: Consumption of coffee has been on the rise in China. Since tea and coffee are generally considered ________, an increase in the price of coffee should ________ the demand for tea, ceteris paribus.

Entrepreneurs are unnecessary in a market economy, and their profit is unearned.

Refer to the information provided in Figure 3.15 below to answer the following questions. Figure 3.15 -Refer to Figure 3.15. An increase in quantity supplied is represented by a movement from