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

In October, market analysts predict that the price of platinum will fall in November.What happens in the platinum market in October, holding everything else constant?

An increase in the demand for lobster due to changes in consumer tastes, accompanied by a decrease in the supply of lobster as a result of bad weather reducing the number of fishermen trapping lobster, will result in

Which of the following would shift the supply curve for MP3 players to the right?

What is the difference between an "increase in demand" and an "increase in quantity demanded"?

Figure 3.7 -Refer to Figure 3.7.Assume that the graphs in this figure represent the demand and supply curves for bicycle helmets.Which panel best describes what happens in this market if there is a substantial increase in the price of bicycles?

A change in supply is represented by a shift of the supply curve.

The income effect of a price change refers to the impact of a change in

If consumers believe the price of iPads will decrease in the future, this will cause the demand for iPads to decrease now.

Table 3.1 Loose Leaf Tea Price per kg. (dollars) Sunil's Quantity Demanded (kgs) Mia's Quantity Demanded (kgs) Rest of Market Quantity Demanded (kgs) Market Quantity Demanded (kgs) \ 8 4 0 30 6 7 2 40 5 9 3 51 4 12 5 64 3 15 8 90 -Refer to Table 3.1.The table above shows the demand schedules for loose-leaf tea of two individuals (Sunil and Mia)and the rest of the market.At a price of $5, the quantity demanded in the market would be

At auction experts expect a Jacques Plante hockey card to get a higher price than Sidney Crosby's rookie card.Which of the following events would cause the price difference in these cards to get smaller?

An increase in the quantity of a product supplied is caused by an increase in the price of the product.

Which of the following will shift the demand curve for a good?

In 2011, floods damaged the Canadian wheat and barley crops.In the market for grains

If, for a product, the quantity supplied exceeds the quantity demanded, the market price will fall until

In 2011, floods prevented many prairie farmers from planting their wheat crops.How did this affect the market price and market quantity of wheat?

Auctions in recent years have resulted in higher prices paid for Jacques Plante (goalie)hockey cards than Sidney Crosby (forward)rookie cards.What is a reason for this difference in price?

Which of the following is evidence of a surplus of bananas?

Which of the following is expected to occur as the baby-boom generation ages?

Figure 3.7 -Refer to Figure 3.7.Assume that the graphs in this figure represent the demand and supply curves for Fruitopia, a soft drink.Which panel describes what happens in the market for Fruitopia when the price of Snapple, a substitute product, decreases?

If the number of firms producing mouthwash increases and consumer preference for mouthwash increases, the equilibrium price of mouthwash will definitely increase.