Supply and Demand Scenarios
A decrease in the price of oranges causes a
An decrease in the quantity supplied
A shortage causes
An increase in the price of oranges
Substitutes in Supply
An increase in the supply of one good will cause a decrease in the supply of a substitute of that good
Complements in Supply
An increase in the supply of one good will cause an increase in the supply of a complement of that good
If the price elasticity of supply of cotton in 1, then if the price of cotton goes down by 5 percent, the quantity of cotton supplied will _____
go down by 5 percent
If both supply and demand are affected by variables, then equilibrium price may ________ and equilibrium quantity may ________
one will change and the other we are not sure of
A surplus causes a
A decrease in the price of oranges
An increase in the price of soda causes a ________ in demand of burritos
Decrease in demand of burritos
An increase in the price of oranges causes a
A decrease in the quantity demanded for oranges
A decrease in the supply of oranges causes a
Shortage
A Decrease in demand for juicers causes a
Surplus
Cash on the Table
Leftover Resources for supplier and demander
An Increase in the price of a factor of production causes a _______ in supply
decrease in supply
if the income of elasticity for iPhones is 1.3, then a 10 percent decrease income will lead to a __ quantity of iPhones demanded
13 percent decrease
A decrease in the quantity demanded for oranges causes a
Decrease in demand for juicers
A hard freeze in Florida causes a
Decrease in the supply of oranges
What is the best way of describing market equilibrium?
Everyone that wants to consume the good or service at the equilibrium price will be able to do so
Around the 4th of July, we would expect
The quantity of fireworks supplied to increase, the demand for fireworks to increase, and increase in the price of fireworks
Efficiently
When we cannot make one person better off without making someone else worse off.
If several new coffee shops open in your town, then this should lead to
a decrease in the price of coffee and an increase in the amount of coffee bought and sold in your town
Given that hops are an important input to the production of beer, a sharp increase in the price of hops should lead to
an increase in the price of beer and a decrease in the amount of beer bought and sold in the market
If bread and peanut butter are complements, then a decrease in the price of peanut butter will lead to an __________
an increase in the price of bread and an increase in the amount of bread that people buy
If the price of pizza increases, then the supply of calzones will _______________
decrease (shift in supply curve left) quantity supplied of pizza increases
Given that paper is made from wood, a decrease in the price of wood should:
decrease the price of paper and increase the quantity of paper bought and sold in the market
If the demand for first-class airline tickets is inelastic with respect to price, then if the price of first-class airline tickets decreases, then total expenditure ____
decreases
If a restaurant is cited for health violations, the demand for that food ____________
decreases. Quantity Supplied decreases`
If the price of tortillas increases, the supply of burritos _______
decreases. Quantity demanded decreases-shortages.
An increase in the price of a complementary good causes a ________ in supply
increase in supply
A technological innovation that reduces the cost of extracting natural gas from the earth's surface should
increase the quantity of natural gas bought and sold in the market and decrease the price of natural gas
All else equal, the introduction of tractors into farming in the early 1900s is likely to have
increased the quantity of agricultural products bought and sold in the market and decreased the price of agricultural products
If the price of skim milk increases, then the supply of cream ____________________
increases (shift in supply curve right) quantity supplied of skim milk increases
Suppose that the demand for gasoline increases at the same time that the supply of gasoline falls, then we know that
the price of gasoline will go up but the equilibrium quantity could go up or down
Relative to summer months, consumers have less exposure to the sun than they do during the winter. Thus, we would expect
the price of the sunscreen to fall, the amount of sunscreen bought and sold in the market to fall, and the demand for sunscreen to fall
You observe that the price of ice cream has gone up and that people are buying less ice cream.
the supply of ice cream has decreased
Given that it's costly to build new oil wells to drill for oil, the price elasticity of supply for crude oil is likely to be _____
very low in short run
