Exam 3: Demand, Supply, and Market Equilibrium

In which of the following instances is the effect on equilibrium price (whether it rises, falls, or remains unchanged) dependent on the magnitude of the shifts in supply and demand?

Digital cameras and memory cards are

Productive efficiency refers to

Increasing marginal cost of production explains

Allocative efficiency is concerned with

In markets where the supply curve is vertical, changes in

An economist for a bicycle company predicts that, other things equal, a rise in consumer incomes will increase the demand for bicycles.This prediction assumes that

Other things equal, if the price of a key resource used to produce product X falls, the

If Z is an inferior good, an increase in money income will shift the

When a fruit or vegetable (such as strawberries or lentils) is in season, the demand for it will increase as it becomes cheaper.

As a result of a decrease in the price of online streaming movies, consumers download more movies online and buy fewer DVDs.This is an illustration of

If we say that a price is too high to clear the market, we mean that

If the demand curve for product B shifts to the right as the price of product A declines, then

When the price of a product increases, a consumer is able to buy less of it with a given money income.This describes the

An increase in the price of a product will reduce the amount of it purchased because

What combination of changes would most likely decrease the equilibrium price?

The relationship between quantity supplied and price is , and the relationship between quantity demanded and price is .

Which of the following is a consequence of rent controls established to keep housing affordable for the poor?

"Price" in the statement of the Law of Supply refers to

Two months ago, the Maryville Shirt company sold 2,000 shirts at $30 per shirt.Last month the company raised its price to $35 per shirt and sold 3,000 shirts.Evidently the company experienced a(n)