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

All else equal, as the price of a product falls, the quantity supplied decreases.

Which of the following would definitely cause an increase in the equilibrium price and an increase in the equilibrium quantity of watermelons?

An increase in the equilibrium price for a product will result

Electric car enthusiasts want to buy more electric cars at a lower price. All of the following events would have this effect except

The substitution effect of a price change refers to

Which of the following generation categories has the smallest population in the United States in 2017?

A growing number of cigar manufacturers in the Caribbean and Central America have begun producing and exporting cigars to the U.S. market. How has this affected the equilibrium price and quantity of cigars?

The income effect explains why there is an inverse relationship between the price of a normal good and the quantity of the good demanded.

Which of the following would cause a decrease in the supply of milk?

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

Figure 3-6 -Refer to Figure 3-6. The figure above represents the market for coffee grinders. Compare the conditions in the market when the price is $15 and when the price is $21. Which of the following describes how the market differs at these prices?

Which of the following generation categories has the largest population in the United States in 2017?

An article in the Wall Street Journal in early 2001 noted two developments in the market for laser eye surgery. The first development concerned side effects from the surgery, including blurred vision. The second development was that the companies renting eye-surgery machinery to doctors had reduced their charges. In the market for laser eye surgeries, these two developments

If a decrease in income leads to a decrease in the demand for mac and cheese, then mac and cheese is

The demand by all the consumers of a given good or service is the ________ for the good or service.

Assume that smartphones are a normal good, and that the prices of smartphones have fallen in recent years. Over this same period, the price of the components used to produce smartphones has also fallen and consumer incomes have risen. Which of the following best explains the falling prices of smartphones?

Select the phrase that correctly completes the following statement. "A decrease in the number of manufacturers caused a decrease in the supply of sailboats. As a result

An increase in the equilibrium quantity of a product will result

By 2017, Pepsi and Coke were attempting to increase their profits in the bottled water market by introducing premium water brands. Pepsi and Coke introduced LIFEWTR and Smartwater, respectively, while competitors like Nestle and Danone produced their own versions of premium water. The premium water brands marketed to compete with LIFEWTR and Smartwater would be considered

One would speak of a movement along a supply curve for a good, rather than a change in supply, if