Exam 3: Where Prices Come From: the Interaction of Demand and Supply

Draw a supply and demand graph showing an equilibrium price of $50 and an equilibrium quantity of 200 units. Explain what would happen if the selling price was $75, and illustrate this on the graph. Explain what would happen if the selling price was $25, and illustrate this on the graph. Be sure to label each axis and curve on the graph. _ _

(Essay)

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Question 161

If a decrease in income leads to in a decrease in the demand for baked beans, then baked beans is:

(Multiple Choice)

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Question 162

What are the five variables that will shift the demand curve? _ _

(Essay)

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Question 163

All else equal, as the price of a product falls, the quantity supplied increases.

(True/False)

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Question 164

Which of the following would shift the supply curve for digital cameras to the left?

(Multiple Choice)

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Question 165

A normal good is a good for which the demand increases as income decreases, holding everything else constant.

(True/False)

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Question 166

Explain the difference between a 'normal good' and an 'inferior good'. _ _

(Essay)

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Question 167

Which of the following would cause an increase in the equilibrium price and an increase in the equilibrium quantity of watermelons?

(Multiple Choice)

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Question 168

Suppose that when the price of raspberries increases, Lonnie increases his purchases of papayas. To Lonnie raspberries and papayas are:

(Multiple Choice)

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Question 169

A change in which of the following variables will change the quantity demanded for a product:

(Multiple Choice)

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Question 170

Figure 3.1 -Refer to Figure 3.1. A decrease in the price of the product would be represented by a movement from:

(Multiple Choice)

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Question 171

The demand by all the consumers of a given good or service is the ________ for the good or service.

(Multiple Choice)

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Question 172

In response to a surplus, the market price of a good will fall; as the price falls, the quantity demanded will increase and quantity supplied will decrease until equilibrium is reached.

(True/False)

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Question 173

Technological advances have resulted in lower prices for high quality mobile phone cameras. What is the impact of this on the market for digital cameras?

(Multiple Choice)

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Question 174

Which of the following would cause a decrease in the supply of milk?

(Multiple Choice)

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Question 175

If the price of orchids falls, the substitution effect due to the price change will cause an increase in the:

(Multiple Choice)

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Question 176

Explain how it would be possible for the equilibrium price and equilibrium quantity to both increase in the market for motorcycles if consumer preference for motorcycles increases and the number of motorcycle manufacturers decreases. _ _

(Essay)

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Question 177

Figure 3.3 -Refer to Figure 3.3. The figure above shows the supply and demand curves for two markets: the market for original Picasso paintings and the market for designer jeans. Which graph most likely represents which market?

(Multiple Choice)

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Question 178

A shortage occurs when the market price is lower than the equilibrium price.

(True/False)

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Question 179

Suppose that when the price of hamburgers decreases, the Landry family decreases their purchases of chicken nuggets. To the Landry family:

(Multiple Choice)

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Question 180

If a decrease in income leads to in a decrease in the demand for baked beans, then baked beans is:

What are the five variables that will shift the demand curve? _ _

All else equal, as the price of a product falls, the quantity supplied increases.

Which of the following would shift the supply curve for digital cameras to the left?

A normal good is a good for which the demand increases as income decreases, holding everything else constant.

Explain the difference between a 'normal good' and an 'inferior good'. _ _

Which of the following would cause an increase in the equilibrium price and an increase in the equilibrium quantity of watermelons?

Suppose that when the price of raspberries increases, Lonnie increases his purchases of papayas. To Lonnie raspberries and papayas are:

A change in which of the following variables will change the quantity demanded for a product:

Figure 3.1 -Refer to Figure 3.1. A decrease in the price of the product would be represented by a movement from:

The demand by all the consumers of a given good or service is the ________ for the good or service.

In response to a surplus, the market price of a good will fall; as the price falls, the quantity demanded will increase and quantity supplied will decrease until equilibrium is reached.

Technological advances have resulted in lower prices for high quality mobile phone cameras. What is the impact of this on the market for digital cameras?

Which of the following would cause a decrease in the supply of milk?

If the price of orchids falls, the substitution effect due to the price change will cause an increase in the:

Explain how it would be possible for the equilibrium price and equilibrium quantity to both increase in the market for motorcycles if consumer preference for motorcycles increases and the number of motorcycle manufacturers decreases. _ _

Figure 3.3 -Refer to Figure 3.3. The figure above shows the supply and demand curves for two markets: the market for original Picasso paintings and the market for designer jeans. Which graph most likely represents which market?

A shortage occurs when the market price is lower than the equilibrium price.

Suppose that when the price of hamburgers decreases, the Landry family decreases their purchases of chicken nuggets. To the Landry family:

Economics: Foundations and Models

Choices and Trade Offs in the Market

Gdp: Measuring Total Production, Income and Economic Growth

Economic Growth, the Financial System and Business Cycles

Long-Run Economic Growth: Sources and Policies

Unemployment

Inflation

Aggregate Expenditure and Output in the Short Run

Aggregate Demand and Aggregate Supply Analysis

Money, Banks and the Reserve Bank of Australia

Monetary Policy

Fiscal Policy

Macroeconomics in an Open Economy

The International Financial System

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Exam 3: Where Prices Come From: the Interaction of Demand and Supply

If a decrease in income leads to in a decrease in the demand for baked beans, then baked beans is:

What are the five variables that will shift the demand curve? _____________________________________________________________________________________________ _____________________________________________________________________________________________

All else equal, as the price of a product falls, the quantity supplied increases.

Which of the following would shift the supply curve for digital cameras to the left?

A normal good is a good for which the demand increases as income decreases, holding everything else constant.

Explain the difference between a 'normal good' and an 'inferior good'. _____________________________________________________________________________________________ _____________________________________________________________________________________________

Which of the following would cause an increase in the equilibrium price and an increase in the equilibrium quantity of watermelons?

Suppose that when the price of raspberries increases, Lonnie increases his purchases of papayas. To Lonnie raspberries and papayas are:

A change in which of the following variables will change the quantity demanded for a product:

Figure 3.1 -Refer to Figure 3.1. A decrease in the price of the product would be represented by a movement from:

The demand by all the consumers of a given good or service is the ________ for the good or service.

In response to a surplus, the market price of a good will fall; as the price falls, the quantity demanded will increase and quantity supplied will decrease until equilibrium is reached.

Technological advances have resulted in lower prices for high quality mobile phone cameras. What is the impact of this on the market for digital cameras?

Which of the following would cause a decrease in the supply of milk?

If the price of orchids falls, the substitution effect due to the price change will cause an increase in the:

Figure 3.3 -Refer to Figure 3.3. The figure above shows the supply and demand curves for two markets: the market for original Picasso paintings and the market for designer jeans. Which graph most likely represents which market?

A shortage occurs when the market price is lower than the equilibrium price.

Suppose that when the price of hamburgers decreases, the Landry family decreases their purchases of chicken nuggets. To the Landry family:

Economics: Foundations and Models

Choices and Trade Offs in the Market

Gdp: Measuring Total Production, Income and Economic Growth

Economic Growth, the Financial System and Business Cycles

Long-Run Economic Growth: Sources and Policies

Unemployment

Inflation

Aggregate Expenditure and Output in the Short Run

Aggregate Demand and Aggregate Supply Analysis

Money, Banks and the Reserve Bank of Australia

Monetary Policy

Fiscal Policy

Macroeconomics in an Open Economy

The International Financial System

Filters

What are the five variables that will shift the demand curve? _ _

Explain the difference between a 'normal good' and an 'inferior good'. _ _