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

-Refer to Figure 3-6. The figure above represents the market for canvas tote bags. Assume that the market price is $35. Which of the following statements is true?

-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 S2 (point B). Which of the following changes would cause the equilibrium to change to point C?

"The price of LED 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.

In recent years the consumption of cobalt, which is used in the manufacture of batteries for electric automobiles, has risen but the price of cobalt has fallen. This is because the supply of cobalt has ________ and the demand for cobalt has ________.

For each of the following pairs of products, state which are complements, which are substitutes, and which are unrelated. a. Blu-ray discs and video-on-demand b. Fiat 500 and Mini Cooper S c. Toothpaste and toothbrush d. Popcorn and snowboards e. Razors and razor blades

Which of the following would cause a decrease in the equilibrium price and an increase in the equilibrium quantity of salmon?

According to a report from the Intergovernmental Panel on Climate Change (IPCC), if humans do not reduce their impact on climate, rising temperatures will threaten agricultural food supplies that could trigger a global food crisis. Jonathan Foley, the executive director of Project Drawdown, has stated that about 25 percent of climate change today is driven by agriculture and factory farming., which is equivalent to the damage caused by all the world's electricity generation. Foley advocates being smarter about how we grow and use food, and reducing food waste as ways to address climate change. Included in the ways experts say people can develop more sustainable habits around food are adopting a more plant-based diet, eat more whole and locally grown foods, eat less junk food, cook less and reuse leftovers, eat smaller portions, and compost plant-based food waste. Source: Julie Compton, " How our diets impact climate change-and what we can do about it," nbcnews.com, August 12, 2019 -Refer to the Article Summary. A large number of millennials and members of generation Z have expressed concern over the negative impact of climate change. Suppose that as a way to help fight climate change, many of these people decide to consume more locally grown produce, while at the same time more local farmers choose to sell more of their produce at local farmers' markets. All else equal, what will happen in the market for locally grown produce as a result of these two factors?

Suppose that Reebok successfully implements 3D printing technology in several of its shoe models, which allows the company to avoid much of the traditional production process used in the manufacture of shoes. All else equal, this technological improvement would

Factors that will tend to lead to higher demand for athletic shoes include all of the following except