ECON 3100 – MIDTERM Questions with Complete Solutions

The demand curve shows... Correct Answer-the quantities that buyers are willing to purchase at different prices. A supply schedule shows Correct Answer-the quantities of a good that producers are willing to provide at different prices A market is said to be in equilibrium when ... Correct Answer-the quantity demanded equals the quantity supplied. Suppose we observe that as the price of lettuce increases from $1 to $2 per head, consumers buy only half the number of heads of lettuce. This situation is best described as ... Correct Answer-a decrease in the quantity demanded. Suppose we observe an increase in the demand for houseplants. What would we expect to happen to the price and quantity sold of houseplants? Correct Answer-Price will increase and quantity will increase. Which graph illustrates a case in which the equilibrium price and quantity both clearly fall? Correct Answer-b - New demand is sloping towards the Y axis on the Supply and Demand Curve