Exam 3: Supply and Demand

Institutions that bring buyers and sellers together so they can interact and transact with each other are called

A leather company produces shoes and belts. What will the company do if it expects the price of shoes to rise in the near future?

If the supply of a good increases while the demand for that good decreases, the equilibrium price will

If both the supply of and the demand for a good increase simultaneously

If the demand for iPhones rises as incomes increase, then the iPhone is a(n) _____ good.

From the seller's perspective, a relatively low price is a good price.

Referring to the graph below, what is the equilibrium price and quantity? What happens when prices are above and below the equilibrium levels?

If the surgeon general announced that wearing baseball caps will eliminate dandruff, then, ceteris paribus, the

Ceteris paribus, an improvement in production technology

(Figure: Interpreting Supply Shifts 3) When the supply shifts from S₀ to S₁, the equilibrium quantity changes from

Which circumstance will cause a movement down along a demand curve?

When a consumer's income level falls, it is MORE likely the consumer will purchase _____ goods.

A decrease in supply causes the equilibrium price to _____ and the equilibrium quantity to _____.

If there is a surplus in a given market, then

Which scenario is the MOST likely effect of a decrease in the price of tablet computers on the market for laptop computers (a substitute)?

Suppose it is discovered that consuming Greek yogurt leads to decreased risk of heart disease. This information would MOST likely lead to a(n)

Which event will NOT lead to a decrease in supply?

(Table) Using the data in the table for the market for lattes, at a price of $10

Demand refers to

If consumers believe that an item will not be available in the future, then demand will shift _____ and the equilibrium quantity will _____.