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

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Wheat is an important part of the Arab diet. Wheat farmers in Saudi Arabia industry have almost been put out of business by water shortages. How will this affect the equilibrium price and quantity of wheat?

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Question 21

"The price of digital cameras fell because of improvements in production technology. As a result, the demand for non-digital cameras decreased. This caused the price of non-digital cameras to fall; as the price of non-digital cameras fell the demand for non-digital cameras decreased even further." Evaluate this statement.

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Question 22

Google launched Ahlan Online

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Question 23

-Refer to Table 3 -2. The table contains information about the wheat market. Use the table to answer the following questions. a. What are the equilibrium price and quantity of wheat? b. Suppose the prevailing price is US$6 per bushel. Is there a shortage or a surplus in the market? c. What is the quantity of the shortage or surplus? d. How many bushels will be sold if the market price is US$6 per bushel? e. If the market price is US$6 per bushel, what must happen to restore equilibrium in the market? f. At what price will suppliers be able to sell 36,000 bushels of wheat? g. Suppose the market price is US$14 per bushel. Is there a shortage or a surplus in the market? h. What is the quantity of the shortage or surplus? i. How many bushels will be sold if the market price is US$14 per bushel? j. If the market price is US$14 per bushel, what must happen to restore equilibrium in the market?

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Question 24

Supermarkets should not necessarily remove goods from their shelves even if they are not selling well. Which of the following explains this reasoning?

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Question 25

To compete with the iPod from Apple, Microsoft began marketing its own digital music player, called Zune. The textbook mentioned one strategy Microsoft could use to overcome the advantages Apple has from selling the most popular brand of music player. What was this strategy?

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Question 26

In Saudi Arabia, the demand for chicken is lower in the summer than in the winter. If the price of chicken is higher in summer than in winter then:

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Question 27

Showing 21 - 27 of 27

Wheat is an important part of the Arab diet. Wheat farmers in Saudi Arabia industry have almost been put out of business by water shortages. How will this affect the equilibrium price and quantity of wheat?

Google launched Ahlan Online

Supermarkets should not necessarily remove goods from their shelves even if they are not selling well. Which of the following explains this reasoning?

To compete with the iPod from Apple, Microsoft began marketing its own digital music player, called Zune. The textbook mentioned one strategy Microsoft could use to overcome the advantages Apple has from selling the most popular brand of music player. What was this strategy?

In Saudi Arabia, the demand for chicken is lower in the summer than in the winter. If the price of chicken is higher in summer than in winter then:

Economics: Foundations and Models

Trade-Offs, Comparative Advantage, and the Market System

Economic Efficiency, Government Price Setting, and Taxes

Elasticity: The Responsiveness of Demand and Supply

Consumer Choice and Behavioral Economics

Technology, Production, and Costs

Firms in Perfectly Competitive Markets

Monopolistic Competition: The Competitive Model in a More Realistic Setting

Oligopoly: Firms in Less Competitive Markets

Monopoly and Antitrust Policy

Pricing Strategy

Externalities, Environmental Policy, and Public Goods

Comparative Advantage and the Gains From International Trade Macro

GDP: Measuring Total Production and Income

Economic Growth, the Financial System, and Business Cycles

Unemployment and Inflation

The Markets for Labor and Other Factors of Production

Output and Expenditure in the Short Run

Aggregate Demand and Aggregate Supply Analysis

Money, Banks, and the Central Bank

Monetary Policy

Fiscal Policy

Inflation, Unemployment, and Central Bank Policy

Macroeconomics in an Open Economy

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