ECON 2500 Practice for Final Exam (chapters 1-19) with ElainePeterson

Examples of Supply and Demand QuestionsPRIVATE

1. What's the law of demand?

2. What's the law of supply?

3. What's the difference between a change in supply and a change in the quantity supplied?

4. What's the difference between a change in demand and a change in the quantity demanded?

Using separate diagrams for each of the following, with supply and demand clearly labeled, please depict the effect on the equilibrium price and quantity of the good that will be produced and sold.

1) The effect of a decrease in the cost of an input.

2) The effect of a decrease in incomes if the good is an inferior good.

3) The effect of an increase in the price of a complement.

4) The effect of an improvement in the production technology.

5) The effect of an increase in the cost of cream on the ice cream market.

6) The effect of an increase in the number of teenagers on the market for roller blades.

7) The effect of an increase in the price of Toyotas on the market for Hondas.

8) The effect of a fall in the price of hamburger on the market for hamburger buns.

9) The effect of an increase in the number of suppliers.

10) The effect of a decrease in incomes if the good is a normal good.

11) The effect of a decrease in the price of a complement.

12) The effect of a loss of production technology.

13) The effect of an increase in the cost of an input.

14) The effect of an increase in the population.

15) The effect of an increase in the price of a substitute.

16) The effect of the finding that wine reduces cholesterol buildup on the market for wine.

17) The effect of a decrease in the price of coco beans on the chocolate market.

18) The effect of an increase in the number of infants on the demand for teddy bears.

19) The effect of an increase in the price of Hondas on the market for Toyotas.

20) The effect of a rise in the price of hotdogs on the market for hotdog buns.