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

Which of the following would shift the supply curve for MP3 players to the right?

Nearly a quarter of China's 1.3 billion people are under the age of 15.How will this affect high school enrollment over the next fifteen years? The labor market over the next fifteen years?

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

"The price of compact fluorescent light bulbs fell because of improvements in production technology.As a result,the demand for incandescent light bulbs decreased.This caused the price of incandescent light bulbs to fall; as the price of incandescent light bulbs fell the demand for incandescent light bulbs decreased even further." Evaluate this statement.

Table 3-1 -Refer to Table 3-1.The table above shows the demand schedules for loose-leaf tea of two individuals (Sunil and Mia)and the rest of the market.If the price of loose-leaf tea rises from $3 to $4,the market quantity demanded would

Select the phrase that correctly completes the following statement."A positive change in technology caused an increase in the supply of flat-screen televisions.As a result ________."

Assume that both the demand curve and the supply curve for MP3 players shift to the right but the demand curve shifts more than the supply curve.As a result

Table 3-1 -Refer to Table 3-1.The table above shows the demand schedules for loose-leaf tea of two individuals (Sunil and Mia)and the rest of the market.At a price of $5,the quantity demanded in the market would be

By drawing a demand curve with ________ on the vertical axis and ________ on the horizontal axis,economists assume that the most important determinant of the demand for a good is the ________ of the good.

Figure 3-4 -Refer to Figure 3-4.If the current market price is $10,the market will achieve equilibrium by

For each of the following pairs of products state which are complements,which are substitutes,and which are unrelated. a.Digital camera and memory stick b.7Up and Mountain Dew c.Swimsuits and flip-flops d.Tylenol and cat food e.Photocopier and paper

Figure 3-8 -Refer to Figure 3-8.The graph in this figure illustrates an initial competitive equilibrium in the market for apples at the intersection of D₁ and S₁ (point A) The equilibrium point will move from A to B. A)) If there is a shortage of apples how will the equilibrium point change? B) The equilibrium point will move from A to C. C) There will be no change in the equilibrium point. D) The equilibrium point will move from A to E.

If the price of automobiles was to increase,then

Studies have shown links between calcium consumption and a reduction in osteoporosis.How does this affect the market for calcium?

In October,market analysts predict that the price of platinum will fall in November.What happens in the platinum market in October,holding everything else constant?

Olive oil producers want to sell more olive oil at a higher price.Which of the following events would have this effect?

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

In each of the following situations,list what will happen to the equilibrium price and the equilibrium quantity for a particular product,which is a normal good. a.The population increases and the price of inputs increase b.The price of a complement increases and technology advances c.The number of firms in the market increases and income increases d.Price is expected to increase in the future e.Consumer preference increases and the price of a substitute in production decreases

If a firm has an incentive to increase supply now and decrease supply in the future,the firm expects that the

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