Exam 3: Demand, Supply, and Market Equilibrium

If improvements in technology have reduced the cost of producing personal computers, you accurately predict that in the market for personal computers, there will be a(n)

Demand for one item goes down when the price of another item goes down. These items must be

DVDs and DVD players are complements. An increase in the price of DVD players would cause which of the following in the market for DVDs?

When the supply of bubble gum increases while the demand for bubble gum decreases, the equilibrium ________ of bubble gum will definitely ________, ceteris paribus.

Refer to Scenario 3.2 below to answer the question(s) that follow. SCENARIO 3.2: Lettuce and spinach are substitutes. Lettuce and tomatoes are complements. Lettuce is a normal good. During the winter, about 20% of the lettuce crop was destroyed by flooding. -Refer to Scenario 3.2. As a result of the flooding during the winter, you would expect that

If coffee and tea are substitutes, then an increase in the price of coffee will result in an increase in the demand for tea.

An electronics manufacturer can produce either MP3 players or cell phones. As the result of a decrease in the price of cell phones, the firm produces more MP3 players and fewer cell phones. An economist would explain this by saying

Related to the Economics in Practice on p. 67: Increased preference for quinoa would shift the ________ curve for quinoa to the right and lead to a(n) ________ in the price of quinoa, ceteris paribus.

Refer to the information provided in Figure 3.10 below to answer the following question(s). Figure 3.10 -Refer to Figure 3.10. A decrease in quantity supplied is represented by a movement from