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

If a decrease in income leads to an increase in the demand for sardines,then sardines are

An increase in the price of pineapples will result in

Assume that the price for lawn care has fallen and sales of lawn care services have also fallen.One can conclude that

If the United States lifted the embargo on Cuban products,what would happen in the U.S.market for Cuban cigars?

If the price of orchids falls,the substitution effect due to the price change will cause

Harvey Rabbitt pays for monthly cable TV service.Last week the cable company informed Harvey that his monthly cable price would go down because the city council has granted approval for three new cable companies to service his area.How is the market for cable TV services affected by this?

Figure 3-2 -Refer to Figure 3-2.A decrease in the expected future price of the product would be represented by a movement from

Assume that the hourly price for the services of personal trainers has risen and sales of these services have also risen.One can conclude that

Shrimp is an increasingly popular part of the American diet.Louisiana shrimpers who represent the bulk of the U.S.industry were almost all put out of business by Hurricane Katrina.How did this affect the equilibrium price and quantity of shrimp?

Which of the following would cause an increase in the supply of peanut butter?

What is the law of supply? What does this law imply about the shape of the supply curve?

Figure 3-7 -Refer to Figure 3-7.Assume that the graphs in this figure represent the demand and supply curves for almonds.Which panel best describes what happens in this market when there is an increase in the productivity of almond harvesters?

A decrease in the equilibrium quantity for a product will result

Figure 3-1 -Refer to Figure 3-1.If the product represented is a normal good,a decrease in income would be represented by a movement from

The market for smartphones has become very competitive.The increase in competition in this market is an example of how the market responds to

If,in response to an increase in the price of chocolate the quantity of chocolate demanded decreases,economists would describe this as

A shortage is defined as the situation that exists when the quantity of a good supplied is greater than the quantity demanded.

If a firm expects that the price of its product will be lower in the future than it is today

If the demand for a product increases and the supply of the product does not change,equilibrium price and equilibrium quantity will both increase.

Which of the following has occurred as the baby-boom generation ages?