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

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

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?

Figure 3-1 -Refer to Figure 3-1. An increase in population would be represented by a movement from

A decrease in the price of inputs will cause the supply curve for a product to shift to the right.

Figure 3-2 -Refer to Figure 3-2. A technological advancement would be represented by a movement from

Assume that airline tickets are a normal good. Prices of commercial airline tickets have fallen in recent months. Over this same period, the price of jet fuel has risen and consumer incomes have fallen. Which of the following best explains the falling prices of airline tickets?

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 D₂ and S₂ (point E). Which of the following changes would cause the equilibrium to change to point A?

Nearly one-fifth of China's 1.38 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?

An increase in the price of pineapples will result in

A change in which variable will change the market demand for a product?

If the sales of carbonated sodas continue to decline as more cities impose soda taxes on these beverages, this will likely

Auctions in recent years have resulted in higher prices paid for letters written by John Wilkes Booth than those written by Abraham Lincoln. What is a reason for this difference in price?

If the price of music downloads was to decrease, then

Auctions in recent years have resulted in higher prices paid for letters written by John Wilkes Booth than those written by Abraham Lincoln. Which of the following events would cause the price differences in these letters to get smaller?

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

Let D = demand, S = supply, P = equilibrium price, Q = equilibrium quantity. What happens in the market for solar panels if the government offers tax breaks to encourage manufacturers to produce more solar panels?

Technological advances have resulted in lower prices for digital cameras. What is the impact of this on the market for traditional (non-digital) cameras?

Which of the following statements is true?

Table 3-4 -Refer to Table 3-4. The table above shows the demand schedules for cashews of two individuals (Jordy and Amy) and the rest of the market. If the price of cashews rises from $4 to $6, the market quantity demanded would

Figure 3-5 -Refer to Figure 3-5. At a price of $20, the quantity sold