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

Figure 3.7 -Refer to Figure 3.7.Assume that the graphs in this figure represent the demand and supply curves for potatoes and that steak and potatoes are complements.What panel describes what happens in this market when the price of steak rises?

Figure 3.1 -Refer to Figure 3.1.If the product represented is a normal good, a decrease in income would be represented by a movement from:

Figure 3.2 -Refer to Figure 3.2.Which movement represents a decrease in the expected future price of a product?

Figure 3.1 -Refer to Figure 3.1.Which movement would signal an increase in population?

Ranchers can raise either cattle or sheep on their land.Which of the following would cause the supply of sheep to increase?

A change in each of the following variables will change the market demand for a product except:

Suppose that when the price of chicken nuggets decreases, Simone increases her purchase of barbecue sauce.To Simone,

If the price of music downloads was to decrease, then________.

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.

Which of the following would cause an increase in the supply of salsa?

The income effect of a price change refers to the change in the quantity demanded of a good that results from a change in the price of an inferior product.

Which term best describes the demand by all the consumers of a given good or service?

Figure 3.2 -Refer to Figure 3.2.An increase in price of inputs would be represented by a movement from:

Which of the following statements is true?

If the price of refillable butane lighters was to decrease, then________.

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

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

A decrease in the equilibrium price for a product will result________.

In each of the following situations, list what will happen to the equilibrium price and the equilibrium quantity for a particular product, which is an inferior good. a.The population increases and productivity increases. b.The income increases and the price of inputs decrease. c.The number of firms in the market decreases and income increases. d.Consumer preference increases and the price of a complement decreases. e.The price of a substitute in consumption decreases and the price of a substitute in production decreases. _____________________________________________________________________________________________ _____________________________________________________________________________________________

If the price of petrol decreases, what will be the impact in the market for public transportation?