Deck 4: Demand and Supply

Question 1

Which of the following increases the supply of a good and shifts its supply curve rightward?

A)a higher wage paid to workers in the industry
B)a smaller number of producers
C)an increase in the price of the good
D)an increase in the cost of the resources used to produce the good
E)a technological advance in how the good is produced

Answer 1

E

Question 2

If both producers and consumers believe that a product's price will rise in the future, then at the Present, demand_{-------------} and supply_{-------------} .

A)increases; increases
B)decreases; increases
C)does not change; does not change
D)increases; decreases
E)decreases; decreases

Answer 2

increases; decreases

Question 3

Teenagers drink more soda than other age groups. If the number of teenagers increases, everything else remaining the same,

A)there is a movement along the market demand curve for soda.
B)market demand for soda increases.
C)market demand for soda does not change.
D)market demand for soda decreases.
E)None of the above answers is correct because the effect on the demand depends whether the supply curve shifts rightward, leftward, or not at all.

Answer 3

B

Question 4

If the price is below the equilibrium price,

A)the supply curve will shift leftward.
B)the demand curve will shift leftward.
C)there is a shortage.
D)there is a surplus.
E)the supply curve will shift rightward.

Question 5

The American Dairy Association starts a highly successful advertising campaign that makes most People want to drink more milk. As a result,

A)the quantity demanded of milk increases.
B)the demand for milk decreases because the price of milk rises.
C)the demand for milk increases.
D)the demand for milk is not affected.
E)the price of milk falls to encourage people to drink more milk.

Question 6

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The figure above shows the market for iPods. Which of the following shifts the demand curve from D0 to D2?

A)a decrease in people's incomes if iPods are a normal good
B)a decrease in the price of iPods
C)a decrease in the price of Zunes, a substitute for iPods
D)an increase in the price of iPods
E)a requirement that all students at universities have an iPod

Question 7

An increase in the number of producers of bird seed_{-------------} the supply of bird seed and shifts the supply curve of bird seed_{-------------} .

A)does not change; rightward
B)increases; rightward
C)decreases; leftward
D)decreases; rightward
E)increases; leftward

Question 8

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In the above figure, the shift in the demand curve from D to D1 can be the result of

A)an increase in the price of a sub sandwich, a substitute for pizza.
B)a change in quantity demanded.
C)an increase in the price of pizza.
D)an increase in the price of soda, a complement to pizza.
E)a decrease in income if pizza is a normal good.

Question 9

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

A)increases the demand for peanuts.
B)decreases the demand for peanuts.
C)increases the demand for soda.
D)decreases the demand for soda.
E)has no effect on the demand for peanuts, though it does change the quantity demanded of peanuts.

Question 10

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The above figures show the market for HD televisions. If there are severe earthquakes that destroy a significant number of of HD television manufacturing plants, which figure shows the effect of the earthquake?

A)Figure A
B)Figure B
C)Figure C
D)Figure D
E)None of the figures represent this change.

Question 11

Water bottlers announce that next month the price of bottled water will rise by 25 percent. Which of The following occurs immediately?

A)The quantity of bottled water demanded increases.
B)The demand for bottled water increases.
C)The demand for bottled water decreases.
D)The quantity of bottled water demanded decreases.
E)None of the above answers is correct because it is the supply that immediately changes, not the demand.

Question 12

One reason the demand for laptop computers might increase is a

A)change in preferences as laptops have become more portable, with faster processors and larger hard drives.
B)decrease in income if laptops are a normal good.
C)fall in the price of a laptop computers.
D)poor quality performance record for laptop computers.
E)fall in price of desktop computers.

Question 13

Changes in which of the following factors do NOT shift the demand curve?

A)buyers' incomes
B)the price of the good
C)the number of buyers
D)the price expected in the future
E)the price of a substitute good

Question 14

Bagels and cream cheese_{--------------------} are complementary goods. Suppose that the price for flour, which is used to produce bagels, increases. The equilibrium price of cream cheese and the equilibrium quantity of cream cheese_{--------------------} .

A)rises; increases
B)rises; decreases
C)does not change; does not change
D)falls; increases
E)falls; decreases

Question 15

The price of salsa rises. How does the increase in the price of salsa affect the supply of salsa?

A)There is no change to either the supply of salsa or the quantity of salsa supplied.
B)The supply of salsa increases.
C)There is no change to the supply of salsa, but the quantity of salsa supplied decreases.
D)The supply of salsa decreases.
E)There is no change to the supply of salsa, but the quantity of salsa supplied increases.

Question 16

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

A)will remain the same.
B)will rise.
C)will fall
D)might rise, fall, or remain the same depending on whether the effect on buyers is larger than, less than, or the same as the effect on sellers.
E)None of the above answers is correct.

Question 17

Which of the following increases the demand for a good or service?

A)a rise in the price of a substitute good or service
B)a rise in the price of a complement
C)a fall in the price of the good or service
D)a smaller number of consumers wanting to buy the good or service
E)a rise in the price of the good or service

Question 18

Which of the following results in a movement upward along the supply curve for movies in theaters?

A)an increase in the price of movie tickets
B)a decrease in the price of downloaded movies
C)a decrease in movie star salaries
D)an increase in the number of theaters
E)a decrease in the price of movie tickets

Question 19

The graph illustrates the demand for peanuts. Peanuts are a normal good because the

A)peanuts have both substitutes and complements.
B)demand curve shows that if the price of peanuts rises, there is a movement along the demand curve to a lower quantity demanded.
C)demand curve for peanuts slopes downward.
D)demand for peanuts increases when the price of one of its substitutes rises.
E)demand for peanuts increases when income increases.

Question 20

As a falling price eliminates a surplus in the jersey market,

A)producers increase the quantity of jerseys they supply.
B)producers decrease the quantity of jerseys they supply and buyers decrease the quantity of jerseys they demand.
C)the demand curve for jerseys shifts rightward and the supply curve of jerseys shifts leftward.
D)the demand curve for jerseys shifts leftward and the supply curve of jerseys shifts rightward.
E)consumers increase the quantity of jerseys they demand.

Question 21

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The above figure shows the market for pizza. The market is in equilibrium when some of the pizza firms go out of business. What point represents the most likely new price and quantity?

A)A
B)B
C)C
D)D
E)E

Question 22

Which of the following shifts the supply curve for oranges?

A)an increase in the number of orange consumers
B)an increase in the price of bananas, a substitute in consumption for oranges
C)an increase in income for all orange consumers if oranges are a normal good
D)disastrous weather that destroys about half of this year's orange crop
E)a newly discovered increase in the nutritional value of oranges

Question 23

During 2008 the supply of gasoline decreased while at the same time the demand for gasoline
Increased. If the magnitude of the increase in demand was greater than the magnitude of the
Decrease in supply, then the equilibrium price of gasoline_{-------------} and the equilibrium quantity_{-------------}
.

A)increased; did not change
B)increased; increased
C)decreased; did not change
D)did not change; increased
E)increased; decreased

Question 24

When there is a surplus of snowboards, the

A)price rises to restore the equilibrium.
B)demand for snowboards is greater than the supply of snowboards.
C)supply of snowboards is greater than the demand for snowboards.
D)quantity of snowboards supplied is greater than the quantity of snowboards demanded.
E)quantity of snowboards demanded is greater than the quantity of snowboards supplied.

Question 25

The law of demand refers to how

A)demand changes when people's incomes change.
B)demand changes when the prices of substitutes and complements change.
C)the price of the good changes when people's demand for the good changes.
D)the quantity demanded changes when the demand for the good changes.
E)the quantity demanded changes when the price of the good changes.

Question 26

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The above figure shows the market for laptops. Which of the following causes a movement from B To A?

A)an increase in the price of laptops
B)an increase in the number of laptop manufactures and sellers
C)an increase in the cost of hard drives
D)a decrease in the price of laptops
E)an increase in the productivity of the workers manufacturing laptops

Question 27

If the demand curve for desktop computers shifts rightward and at the same time the supply curve shifts leftward, then

A)the equilibrium price definitely falls.
B)the equilibrium price definitely remains the same.
C)the equilibrium price definitely rises.
D)More information is needed to determine the effect on the equilibrium price.
E)the equilibrium quantity definitely increases.

Question 28

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In the above figure, the shift in the demand curve from D to D1 can be the result of

A)an increase in the number of teenagers, all of whom demand more pizza than do other age groups.
B)an increase in the price of soda, a complement to pizza.
C)new technology that increases the profit from producing pizza.
D)a decrease in income if pizza is a normal good.
E)a decrease in the price of a sub sandwich, a substitute for pizza.

Question 29

The law of supply reflects the fact that

A)people buy more of a good when its price falls.
B)suppliers have an incentive to use their resources in the way that brings the biggest return.
C)the demand curve is downward sloping.
D)higher prices are more attractive to consumers because they signal a higher quality product.
E)businesses can sell more goods at lower prices.

Question 30

If the supply of iPods increases, then
I)the supply curve for iPods has shifted rightward.
Ii)the price of iPods has decreased.
Iii)there will be a movement upward along the iPod supply curve.

A)i, ii and iii
B)ii and iii
C)i only
D)i and ii
E)i and iii

Question 31

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The above figures show the market for HD televisions. If more firms start to produce HD televisions , which figure shows the effect of this change?

A)Figure A
B)Figure B
C)Figure C
D)Figure D
E)None of the figures represent this change.

Question 32

Consumers eat salsa with taco chips. The price of salsa rises. How does the increase in the price of
Salsa affect the demand for taco chips?

A)It increases the demand for taco chips.
B)It decreases the demand for taco chips.
C)It has no effect on the demand for taco chips.
D)It will decrease the demand for taco chips only if taco chips are a normal good.
E)It could increase, decrease, or have no effect on the demand for taco chips, but more information is needed to determine the impact.

Question 33

The number of corn producers increases, so the supply of corn_{--------------------} and the supply curve of corn_{--------------------} .

A)decreases; shifts leftward
B)increases; shifts leftward
C)decrease; shifts rightward
D)increases; shifts rightward
E)increases; does not shift

Question 34

Which of the following indicates that the law of supply applies to makers of soda?

A)An increase in the price of a soda leads to an increase in the demand for soda.
B)An increase in the price of a soda leads to an increase in the supply of soda.
C)A decrease in the price of a soda leads to an increase in the quantity of soda demanded.
D)A decrease in the price of a soda leads to an increase in the supply of soda.
E)An increase in the price of a soda leads to an increase in the quantity of soda supplied.

Question 35

Which of the following shifts the supply curve of popcorn leftward?

A)an increase in the price of popcorn
B)a decrease in the price of popcorn
C)a technological development in the production of popcorn
D)a decrease in the number of popcorn suppliers
E)a decrease in the cost of producing popcorn

Question 36

The impact of an increase in the price of a particular good is illustrated as a

A)movement upward and to the left along its demand curve.
B)rightward shift in its demand curve.
C)rightward shift in its demand curve and a movement upward and to the left along its demand curve.
D)leftward shift in its demand curve.
E)movement downward and to the right along its demand curve.

Question 37

Consider the market for turkeys. In the United States, because of Thanksgiving in the month of November,

A)neither the demand curve nor the supply curve shift; instead there is a movement along both curves.
B)there is a downward movement along the demand curve for turkeys.
C)there is an upward movement along the supply curve for turkeys.
D)the supply curve of turkeys shifts leftward.
E)the demand curve for turkeys shifts leftward.

Question 38

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The figure above shows the market for iPods. Which of the following shifts the demand curve from D0 to D1?

A)a requirement that all students at universities have an iPod
B)an increase in people's incomes
C)an increase in the price of iPods
D)a decrease in the price of Zunes, a substitute for iPods
E)a decrease in the price of iPods

Question 39

Hot dogs and hot dog buns are complements. If the price of a hot dog falls, then

A)the quantity demanded of hot dog buns will increase.
B)the quantity demanded of hotdogs will decrease.
C)the demand for hot dogs will increase.
D)the demand for hot dog buns will increase.
E)the demand for hot dog buns will decrease.

Question 40

The law of supply states that other things remaining the same, a decrease in the price of a kayak Leads to

A)an increase in the supply of kayaks.
B)a decrease in the quantity of kayaks supplied.
C)an increase in the quantity of kayaks supplied.
D)a decrease in the supply of kayaks.
E)an increase in the supply of kayaks and a decrease in the quantity of kayaks supplied.

Question 41

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Which figure above shows the effect of an increase in the cost of the tomato sauce used to produce pizza?

A)Figure A
B)Figure B
C)Figure C
D)Figure D
E)Both Figure B and Figure C

Question 42

Gasoline prices increase by 50 percent and other things remain the same. As a result, there is

A)an increase in the demand for gasoline.
B)a decrease in the quantity of gasoline demanded.
C)a decrease in the demand for gasoline.
D)no change in the quantity of gasoline demanded.
E)More information is needed to determine if the demand for gasoline increases or decreases.

Question 43

In the figure above, if point "a" represents the original equilibrium and point "b" the new equilibrium, then

A)there has been an increase in supply.
B)there has been an increase in demand.
C)there has been a change in the quantity supplied and no change in supply.
D)Both answers B and C are correct.
E)Both answers A and B are correct.

Question 44

Ramen noodles are a staple food item for many college students. Ramen noodles are very inexpensive, easy to prepare, and can be combined easily with other foods. After students graduate, find employment, and earn a higher income, they decrease their Ramen noodle purchases significantly. In this case, Ramen noodles are

A)a normal good.
B)a substitute good.
C)an inferior good.
D)a complement for higher income people.
E)None of the above answers is correct.

Question 45

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The figure above shows the market for iPods. Which of the following creates a movement from point A to point B?

A)an increase in the price of iPods
B)a decrease in the price of iPods
C)an increase in people's incomes
D)a decrease in the price of Zunes, a substitute for iPods
E)a requirement that all students at universities have an iPod

Question 46

Which of the following is true?

A)If people expect the price of a good will rise in the future, the demand curve shifts leftward.
B)If the price of a substitute rises, the demand curve shifts leftward.
C)An increase in the cost of producing a good shifts the demand curve leftward.
D)For an inferior good, when income increases, the demand curve shifts leftward.
E)An increase in population shifts the demand curve leftward.

Question 47

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In the above figure, the shift in the supply curve from S to S2 reflects

A)a decrease in the supply of pizza.
B)an increase in the supply of pizza.
C)an increase in the quantity of pizza supplied.
D)a decrease in the quantity of pizza supplied.
E)a decrease in the supply of pizza and a simultaneous decrease in the quantity of pizza supplied.

Question 48

Which of the following is correct?
I. A surplus puts downward pressure on the price of a good.
Ii. A shortage puts upward pressure on the price of a good. iii. There is no surplus or shortage at equilibrium.

A)only iii
B)ii and iii
C)i, ii, and iii
D)i and ii
E)i and iii

Question 49

Other things remaining the same, the quantity of a good or service demanded will increase if the price of the good or service

A)rises or falls.
B)rises or does not change.
C)does not change.
D)rises.
E)falls.

Question 50

Suppose the equilibrium price of oranges is $2.00 per pound. If the actual price is above the
Equilibrium price a

A)shortage exists and the price falls to restore equilibrium.
B)surplus exists and the price rises to restore equilibrium.
C)shortage exists and the price rises to restore equilibrium.
D)surplus exists but nothing happens until either the demand or the supply changes.
E)surplus exists and the price falls to restore equilibrium.

Question 51

The market supply curve is thethe _{-------------}of the _{-------------}

A)vertical sum; individual supply curves
B)vertical sum; individual supply curves minus the market demand
C)vertical average; of the individual supply curves
D)horizontal sum; individual supply curves minus the market demand
E)horizontal sum; individual supply curves

Question 52

-
A construction boom occurs and many of the new buildings need plywood for their framing.Which of the figures above best illustrates this change?

A)Figure A
B)Figure B
C)Figure C
D)Figure D
E)Figure A or Figure C

Question 53

Scooters and bicycles are substitutes. Suppose that the price of a bicycle falls. Which of the figures above best illustrates how this fall in price affects the demand curve for scooters?

A)Figure A
B)Figure B
C)Figure C
D)Figure D
E)None of the above answers is correct because the change in the price of a bicycle will affect the supply curve not the demand curve.

Question 54

To find the market demand curve for in-line skates, we must

A)take account of the skate buying plans of all actual and potential buyers in all possible situations.
B)add the quantities demanded at every price and every income by every buyer of in-line skates.
C)sum horizontally the individual demand curves of all the buyers.
D)add the quantities demanded at prices that all buyers can afford to pay.
E)None of the above answers is correct because we need also to take account of the supply of in-line skates.

Question 55

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

A)will fall
B)will rise.
C)will remain the same.
D)might rise, fall, or remain the same but more information is needed.
E)will rise if the magnitude of the effect on the buyers is larger than the magnitude of the effect on the sellers.

Question 56

If the number of companies producing memory chips increases, then the

A)supply of memory chips decreases.
B)demand for memory chips increases.
C)supply of memory chips increases.
D)supply of memory chips does not change.
E)quantity of memory chips supplied increases.

Question 57

The graph illustrates the supply of sweaters. As the technology used to produce sweaters improves, the

A)supply of sweaters decreases and the demand for sweaters does not change.
B)supply of sweaters increases and the demand for sweaters increases.
C)supply of sweaters increases and the demand for sweaters does not change.
D)quantity of sweaters supplied increases.
E)quantity of sweaters supplied decreases.

Question 58

Suppose the equilibrium price of movie tickets is $10. If the supply curve for movies shifts_{-------------}, the equilibrium price will _{-------------}.

A)rightward; increase
B)leftward; decrease
C)leftward; not change
D)rightward; decrease
E)rightward; not change

Question 59

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

A)demand for Dell computers decreases.
B)demand for Dell computers increases.
C)demand for Apple computers increases.
D)supply of Dell computers increases.
E)demand for Apple computers decreases.

Question 60

A demand schedule

A)shows how the demand changes when the supply changes.
B)shows that demand is on schedule.
C)is a graph showing a relationship between the quantity demanded and the price of a good.
D)is a list of the quantities demanded at each different price when all other influences on buying plans remain the same.
E)shows the quantity demanded at one price.

Question 61

Suppose that the equilibrium price and quantity of new houses both increase. Which of the following could be a cause of this change?

A)A technological advance in framing a new house might have occurred.
B)More home buyers might have moved into the area.
C)The wage paid carpenters who build new houses might have risen.
D)The cost of wood framing used to build houses might have fallen.
E)The rent for nearby apartments might have fallen.

Question 62

The quantity supplied of a good is

A)equal to the difference between the quantity available and the quantity desired by all consumers and producers.
B)the same thing as the quantity demanded at each price.
C)always larger than the quantity demanded at each price.
D)the amount that the people are willing and able to sell during a given time period at a specified price.
E)the amount the firm will sell when it can sell all it wants.

Question 63

-

Pizza is a normal good. In the above figure, the shift in the demand curve from D to D2 can be the result of

A)a decrease in the price of soda, a complement to pizza.
B)a study that shows that pizza is a very healthy food.
C)an increase in the price of hamburgers, a substitute for pizza.
D)an increase in the cost of producing pizza.
E)a decrease in income.

Question 64

Suppose that the price of flour used to produce bagels increases. Hence the equilibrium price of a Bagel _{-------------}and the equilibrium quantity_{-------------} .

A)rises; decreases
B)falls; increases
C)does not change; does not change
D)rises; increases
E)falls; decreases

Question 65

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The above figures show the market for HD televisions. If the price of the LCD screens used to produce these televisions falls, which figure shows the effect of this change in price?

A)Figure A
B)Figure B
C)Figure C
D)Figure D
E)None of the figures represent this change.

Question 66

A popular dinner among college students today is sushi, green tea, and wasabi dip so these foods are complements. If the price of green tea increases and the price of wasabi dip increases, what would be the effect on demand for sushi at lunch?

A)The demand for sushi would be unaffected, but the price would decrease.
B)The demand for sushi would increase.
C)The demand for sushi would be unaffected, but the price would increase.
D)The demand for sushi would decrease.
E)The demand for sushi could increase or decrease.

Question 67

Which of the following leads to an increase in the quantity supplied but not an increase in supply?

A)a decrease in the costs of production
B)an advance in the technology used to produce the good
C)an increase in the product's price
D)an increase in the price of another product that the suppliers can produce
E)an increase in the number of firms producing the good or service

Question 68

-

Which figure above shows the effect if research is published claiming that eating pizza is healthy?

A)Figure A
B)Figure B
C)Figure C
D)Figure D
E)Both Figure A and Figure D

Question 69

A huge 50 percent off sale on golf clubs is advertised for next week. What happens this week in the market for golf clubs?

A)The demand for golf clubs decreases.
B)The demand for golf clubs increases.
C)The supply of golf clubs decreases.
D)The supply of golf clubs increases.
E)The demand for and the supply of golf clubs decreases.

Question 70

Mulch is shredded wood and is a by-product in the production of lumber. Because these two goods are produced together, they are

A)substitutes in production.
B)complements in production.
C)normal goods in production.
D)not related.
E)inputs into the same production process.

Question 71

Suppose the price of leather used to produce shoes increases. The higher price of leather_{-------------}
The supply of shoes and the supply curve of shoes_{-------------} _ .

A)increases; shifts leftward
B)decreases; shifts leftward
C)does not change; does not shift
D)increases; shifts rightward
E)decreases; shifts rightward

Question 72

If there is a surplus of tacos, then the

A)quantity of tacos demanded is greater than the quantity of tacos supplied.
B)quantity of tacos demanded equals the quantity of tacos supplied.
C)quantity of tacos demanded is less than the quantity of tacos supplied.
D)market is at equilibrium.
E)supply curve of tacos will shift leftward to eliminate the surplus.

Question 73

Suppose that over the next few years the demand for dancing to country and western music decreases. Hence, at country and western dance clubs the equilibrium price of admission and the equilibrium quantity of dancing _ .

A)falls; decreases
B)falls; increases
C)rises; increases
D)does not change; decreases
E)rises; decreases

Question 74

The "law of demand" indicates that if the University of Maine increases tuition, all other things
Remaining the same,

A)the demand for classes will increase at the University of Maine.
B)the quantity of classes demanded will increase at the University of Maine.
C)the demand for classes will decrease at the University of Maine.
D)the quantity of classes demanded will decrease at the University of Maine.
E)both the demand for and the quantity of classes demanded will decrease at the University of Maine.

Question 75

Assume a market is in equilibrium. There is an increase in supply, but no change in demand As a
Result the equilibrium price _, and the equilibrium quantity _ .

A)falls; increases
B)rises; decreases
C)rises; increases
D)rises; does not change
E)falls; decreases

Question 76

The law of demand implies that, other things remaining the same,

A)as the price of a cheeseburger rises, the quantity of cheeseburgers demanded decreases.
B)as the price of a cheeseburger rises, the quantity of cheeseburgers demanded increases.
C)as income increases, the quantity of cheeseburgers demanded increases.
D)as more people demand cheeseburgers, the quantity demanded increases.
E)as the demand for cheeseburgers increases, the price of a cheeseburger falls.

Question 77

$\begin{array} { c c c } \hline \begin{array} { c } \text { Price } \\\text { (dollars } \\\text { per stapler) }\end{array} & \begin{array} { c } \text { Quantity demanded } \\\text { (thousands of staplers } \\\text { per week) }\end{array} & \begin{array} { c } \text { Quantity supplied } \\\text { (thousands of staplers } \\\text { per week) }\end{array} \\\hline 8 & 10 & 90 \\7 & 40 & 80 \\6 & 70 & 70 \\5 & 100 & 60 \\\hline\end{array}$
Using the data in the table above, if the price of a stapler is $8, then there is a of staplers and the quantity of staplers demanded the quantity of staplers supplied.

A)surplus; is greater than
B)neither a surplus nor a shortage; equals
C)surplus; is less than
D)shortage; is greater than
E)shortage; is less than

Question 78

Suppose the current price of a pound of steak is $6 per pound and the equilibrium price is $9 per pound. What takes place?

A)There is a shortage, so the price falls and quantity demanded decreases.
B)There is a shortage, so the price rises and quantity demanded increases.
C)There is a shortage, so the price rises and quantity demanded decreases.
D)There is a shortage, so the price falls and quantity demanded increases.
E)There is a surplus, so the price falls and quantity demanded increases.

Question 79

If the price of carrots is below the equilibrium price, the

A)quantity supplied of carrots exceeds the quantity demanded and a shortage exists.
B)quantity supplied of carrots equals the quantity demanded.
C)quantity demanded of carrots exceeds the quantity supplied and a surplus exists.
D)quantity demanded of carrots exceeds the quantity supplied and a shortage exists.
E)quantity supplied of carrots exceeds the quantity demanded and a surplus exists.

Question 80

Consider the market for wheat. If there is an improvement in harvesting technology,

A)there is a movement up along the demand curve.
B)the supply curve for wheat shifts rightward.
C)the demand curve for wheat shifts leftward.
D)the demand curve for wheat shifts rightward.
E)the equilibrium price rises.