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

Farmers can raise either goats or ostriches on their land.Which of the following would cause the supply of goats to decrease?

A change in quantity supplied is represented by a movement along the supply curve.

Figure 3-5 -Refer to Figure 3-5.In a free market such as that depicted above,a shortage is eliminated by

The ________ effect of a price change refers to the impact of a change in the price of a good on a consumer's purchasing power.

Figure 3-3 -Refer to Figure 3-3.The figure above shows the supply and demand curves for two markets: the market for original Michelangelo sculptures and the market for Ray Ban sunglasses.Which graph most likely represents which market?

An decrease in supply is caused by a decrease in the price of the product.

Which of the following would cause the equilibrium price of ketchup to increase and the equilibrium quantity of ketchup to decrease?

Figure 3-2 -Refer to Figure 3-2.A decrease in the price of inputs would be represented by a movement from

Suppose that when the price of hamburgers increases,the Ruiz family increases their purchases of hot dogs.To the Ruiz family

If a firm expects that the price of its product will be lower in the future than it is today

Assume that the hourly price for the services of personal trainers has risen and sales of these services have also risen.One can conclude that

If an increase in income leads to an increase in the demand for sushi,then sushi is

If the demand for a product increases and the supply of the same product decreases,the equilibrium price will increase.

If the demand for a product decreases and the supply of the same product increases,the equilibrium quantity will increase.

An increase in the price of MP3 players will result in

What would happen in the market for knee replacement surgery if insurance companies started to cover a smaller portion of the cost of the surgery,and fewer doctors decide to enter the field of joint replacement surgery?

Figure 3-6 -Refer to Figure 3-6.The figure above represents the market for coffee grinders.Assume that the price of coffee grinders is $50.At this price

Which of the following has occurred as the millennial generation has come of age?

If a decrease in income leads to an increase in the demand for macaroni,then macaroni is

It is possible for a market for a good to experience a surplus and a shortage at the same time.