{[ promptMessage ]}

Bookmark it

{[ promptMessage ]}

Study Guide-Exam 2 - Study Guide Exam 2(Fall 2010 Student...

Info iconThis preview shows pages 1–3. Sign up to view the full content.

View Full Document Right Arrow Icon
Study Guide - Exam 2 (Fall 2010) Student: _______________________________________________________________________________________ Use the figure below to answer the following question(s): 1. Refer to the above diagram, which shows demand and supply conditions in the competitive market for product X. If supply is S 1 and demand D 0 , then A. at any price above 0 G a shortage would occur. B. 0 F represents a price that would result in a surplus of AC . C. a surplus of GH would occur. D. 0 F represents a price that would result in a shortage of AC . 2. An unusually large crop of coffee beans might: 3. The term quantity demanded: 4. If Z is an inferior good, an increase in money income will shift the:
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
5. Markets explained on the basis of supply and demand: A. assume many buyers and many sellers of a standardized product. B. assume market power so that buyers and sellers bargain with one another. C. do not exist in the real-world economy. D. are approximated by markets in which a single seller determines price. Use the figure below to answer the following question(s): 6. Refer to the above diagram, which shows three demand curves for coffee. Which would cause the change in the demand for coffee illustrated by the shift from D1 to D2 ? In the following question(s) you are asked to determine, other things equal, the effects of a given change in a determinant of demand or supply for product X upon (1) the demand ( D ) for or supply ( S ) of X (2) the equilibrium price ( P ) of X and (3) the equilibrium quantity ( Q ) of X . 7. Refer to the above. If X is an inferior good, a decrease in income will:
Background image of page 2
Image of page 3
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}