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

Which of the following would cause a decrease in the equilibrium price and an increase in the equilibrium quantity of salmon?

Figure 3.5 -Refer to Figure 3.5.What would be the outcome if the price is $20?

If the Apple iPhone and the Samsung Galaxy are considered substitutes, then, other things equal, an increase in the price of the iPhone will:

Figure 3.4 -Refer to Figure 3.4.How many units will be sold if the price is $15?

Figure 3.4 -Refer to Figure 3.4.If the price is $15,

Figure 3.5 -Refer to Figure 3.5.In a free market, such as that depicted above, a surplus is eliminated by:

What is the ceteris paribus condition? _____________________________________________________________________________________________ _____________________________________________________________________________________________

Holding everything else constant, a decrease in the price of bicycles will result in:

Which of the following would cause both the equilibrium price and equilibrium quantity of wheat, (assume that wheat is a normal good)to increase?

If the price of peaches, a substitute for plums, decreases the demand for plums will increase.

Figure 3.6 -Refer to Figure 3.6.The figure above represents the market for canvas tote bags.Compare the conditions in the market when the price is $50 and when the price is $35.Which of the following describes how the market differs at these prices?

How does the increasing use of e-books affect the market for hardcover books?

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

Hamburgers and mustard are complements.If the price of mustard decreases, the demand for hamburgers will increase.

Market equilibrium occurs where supply equals demand.

Use the following supply schedule for cucumbers to draw a graph of the supply curve.Be sure to label the supply curve and each axis, and show each point on the supply curve.

If the quantity supplied exceeds the quantity demanded, the market price will fall until:

Explain the differences between a change in supply and a change in quantity supplied. _____________________________________________________________________________________________ _____________________________________________________________________________________________

Figure 3.6 -Refer to Figure 3.6.The figure above represents the market for canvas tote bags.Assume that the price of tote bags is $15.At this price,

Figure 3.5 -Refer to Figure 3.5.At a price of $10, the quantity sold________.