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Which of the following will cause a shift in demand?

* Consumer tastes changing because of advertising. -Some important determinants of demand include consumer preferences, prices of related goods and services, income, demographic characteristics such as population size, and buyer expectations. This would be an example of consumer preferences, which is a determinant of demand.

What occurs when the quantity of a good or service supplied exceeds the quantity demanded at the current price?

* Surplus - A surplus is a situation in which the quantity supplied of a good or service exceeds the quantity demanded at the current price.

The following represents the market for artichokes: Price Quantity supplied Quantity demanded $5 6,200 1,500 $4 5,000 2,250 $3 4,500 2,750 $2 3,250 3,250 $1 2,000 3,500 What is the equilibrium price and quantity in this market?

*$2; 3,250 - The equilibrium price and quantity is where the Supply curve meets the Demand curve. This can be seen where the quantity supplied is equal to the quantity demanded at a single price. In this case, at $2, the quantity supplied and quantity demanded are both 3,250. That point is therefore the equilibrium point.

The following represents the market for propane each week:

*$5.50; 15,000 -Equilibrium price and quantity are found where the Supply curve crosses the Demand curve. On this graph, that point is at a price of $5.50 and a quantity of 15,000.

Which of the following will cause a shift in supply?

*A new technology being developed to produce a good. -An improvement in technology can cause an increase in productivity and reduce the cost of production which would cause a shift in supply.

The following represents three possible market supply curves for chickpeas: (s1 is left s0 is middle s2 is right)

*Supply will shift from S0 to S1 -When firms leave the chickpea industry, supply of chickpeas will fall. The supply curve moves to the left. A move from S0 to S1 is possible

The market for garlic is in equilibrium, then both the supply and the demand for garlic increase. What affect will this change have on the equilibrium price and quantity for garlic?

*The change in equilibrium price is ambiguous and the quantity increases. -The effect on the equilibrium price is ambiguous. Whether the equilibrium price is higher, lower, or unchanged depends on the extent to which each curve shifts. If simultaneous shifts in demand and supply cause equilibrium price or quantity to move in the same direction, then equilibrium price or quantity clearly moves in that direction.

In general, what affect does an increase in the number of buyers have on the total quantity of a good or service?

*The greater the number of buyers, the greater the demand. -A larger number of buyers will have a larger demand for goods and services. While each individual person's demand curve may not change as the number of buyers rises, the number of buyers as a whole will continue to demand more.

13. Which of the following would increase the equilibrium price of bananas? (Choose 2)

-Hurricane wiped out the banana crop in south America -Medical research that demonstrates the cancer fighting ability of bananas.

What quantity do sellers collectively wish to sell at $12 per pound? price, qty 12, 1500 10,1000 5, 400

1,500 thousands of pounds per week

2. A change in the demand for apples could result from any of the following EXCEPT

A change in the price of an apple

5. Which of the following does NOT increase the supply of lightbulbs, that is, does NOT shift the supply curve of lightbulbs?

A rise in the price of a light bulb

12. Suppose the equilibrium price of avocados is $2.00. If the actual price is above the equilibrium price, a

A surplus exists and the price falls to restore equilibrium

15. The demand and supply curves in the graph below show which of the following changes. (both shift right (q&d) and price increase) D1-D2 Q1-Q2

An increase in the demand and an increase in the equilibrium price

6. Which of the following decreases the supply of doughnuts?

An increase in the price of a resource used to produce doughnuts, such as sprinkles.

11. A surplus of tomatoes means that

At the current price of a tomato, the quantity demanded is less than the quantity supplied.

10. Assume a competitive market is in equilibrium. There is an increase in demand, but no change in supply. As a result the equilibrium price ________, and the equilibrium quantity ________.

Rises; increases

3. The phrase "a change in demand" most directly implies a

Shift of the demand curve

8. The above figure shows the market for t-shirts. If the price of t-shirts is $10, then

The market is in equilibrium

4. When the price of oranges increases,

The quantity of oranges supplied increases.

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

falls

9. 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 ________.

falls; increases

14. If, at a specific price, quantity demanded is greater than quantity supplied, then price will

increase until the excess demand is eliminated

16. The demand for dog food increases while the supply increases. The equilibrium price of dog food ________, and the equilibrium quantity ________.

perhaps changes but we cant say if it increases, decreases, or stays the same; increase.

17. The demand for avocados increases while the supply decreases. The equilibrium price of avocados ________, and the equilibrium quantity ________.

rises; perhaps changes but we can't say if it increases, decreases, or stays the same.

7. If input prices decrease, ceteris paribus,

supply will increase