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

Which of the following is evidence of a shortage of chocolate?

If in the market for apples the supply has decreased,then

Farmers can plant either corn or soybeans in their fields.Which of the following would cause the supply of soybeans to increase?

Market equilibrium occurs where the quantity supplied is equal to the quantity demanded.

Figure 3-4 -Refer to Figure 3-4.At a price of $25,how many units will be supplied?

A supply curve

Which of the following generation categories has the smallest population in the United States in 2017?

In recent years the cost of producing wines in the U.S.has increased largely due to rising rents for vineyards.At the same time,more and more Americans prefer wine over beer.Which of the following best explains the effect of these events in the wine market?

Even when the demand for one good is high,the price of the good is also affected by supply.The textbook illustrates this by comparing the price of two items that were auctioned on the same day.Which of the following describes the results of the auction?

Figure 3-4 -Refer to Figure 3-4.If the current market price is $25,the market will achieve equilibrium by

If the price of beef jerky rises,then the substitution effect due to the price change will cause

In much of Europe,the legal age to obtain a driver's license is 18.If the legal driving age in the United States was changed to 18,how would this affect the market for new automobiles? The market for automobile insurance?

Figure 3-7 -Refer to Figure 3-7.Assume that the graphs in this figure represent the demand and supply curves for tuna.Which panel best describes what happens in this market when there is a decrease in the productivity of commercial fishermen?

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

Hurricane Katrina damaged a large portion of refining and pipeline capacity when it swept through the Gulf coast states in August 2005.As a result of this,many gasoline distributors were not able to maintain normal deliveries.At the pre-hurricane equilibrium price (i.e.,at the initial equilibrium price),we would expect to see

Which of the following would shift the supply curve for smartphones to the right?

Electric car manufacturers want to sell more electric cars at a higher price.Which of the following events would have this effect?

Assume that both the demand curve and the supply curve for DVD players shift to the left but the supply curve shifts more than the demand curve.As a result

Factory incentives on cell phones have encouraged consumers to upgrade their phones.How does this affect the market for bluetooth headsets?

If virtual reality headsets are considered substitutes for game consoles,an increase in the price of virtual reality headsets would,all else equal,