Exam 3: Demand and Supply

Suppliers will provide more of a good when

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

A market requires

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

Of the following,which is the least likely to be an example of substitute goods?

Which of the following statements is consistent with a decrease in supply?

If the price of an item can freely adjust,a market will

Which of the following statements about a supply curve is FALSE?

"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?

The law of demand includes the statement "other things being equal." These other things include all of the following EXCEPT

According to the law of supply,

Which of the following will cause a movement along the supply curve for oil?

In the long run,the number of firms in an industry may change.If the number of firms increases,then

A demand curve is a graphical representation of

-According to the above table,at a price of $2 per unit,which of the following would exist?

The price of a new textbook is $120 in one year and is $150 two years later,while the price of a used copy of the text increased from $40 to $60.The relative price of a new textbook

The absolute price of a good is its

A decrease in demand would be represented 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

The demand curve is downward sloping because