Exam 4: Demand and Supply

-The graph illustrates the market for British pounds,the currency of the United Kingdom.As the number of buyers of pounds decreases and the number of sellers of pounds increases,the equilibrium price of a pound

What is the difference between a normal good and an inferior good.Give an example of each.

-The above figure shows the market for pizza.The market is in equilibrium when new pizza firms enter the market.What point represents the most likely new price and quantity?

The law of supply states that,other things remaining the same,

-Using the data in the table above,at the price of $80 a phone,

Consumers regard Dell computers and Apple computers as substitutes.If the price of a Dell computer decreases,the

Suppose the equilibrium quantity of movie tickets is 1000.If the demand curve shifts ________,the equilibrium quantity of movie tickets will ________.

-Soda and peanuts are complements.Other influences on buying plans remaining the same,a rise in the price of soda

If there is a surplus of a good,the quantity demanded is ________ the quantity supplied,and the price will ________.

-New technology for producing plywood is developed.Which of the figures above best illustrates this change?

-In the figure above,if the price is $8 a unit,is there a shortage or surplus and what is the amount of any shortage or surplus?

A change in the price of a good ________ its supply curve and ________ a movement along its supply curve.

Which of the following increases the supply of a good?

What leads to a decrease in the quantity demanded of a good or service?

-In the above figure,the movement from point a to point b reflects

-In the above figure,the shift in the supply curve from S to S? might reflect

-The figure above shows the market for iPods.Which of the following shifts the demand curve from D? to D??

If the price of a DVD falls, i.the demand curve for DVDs will shift rightward. ii.the demand curve for DVDs will not shift. iii.there will be a movement along the demand curve for DVDs.

What happens to the demand for a good if a complement's price increases?

-In the figure above,a price of $15 per dozen roses results in