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

Which of the following would cause a decrease in the equilibrium price and decrease in the equilibrium quantity of papayas?

A demand curve shows the relationship between

Figure 3-2 -Refer to Figure 3-2.An increase in the price of the product would be represented by a movement from

The ________ effect refers to the change in quantity demanded for a good that results from the effect of a change in the good's price on consumer's purchasing power.

Select the phrase that correctly completes the following statement."A decrease in the expected future price caused an increase in the supply of smartphones.As a result

If the price of a product is expected to increase in the future,the supply today will increase.

If tablet computers are considered substitutes for e-readers,the increase in the price of tablet computers would,all else equal

If pilots and flight attendants agree to wage and benefit reductions in the wake of the financial difficulties in the airline industry,what impact would this have on the supply and demand in the market for airline service,assuming no other changes take place in this market?

A surplus occurs when the market price is lower than the equilibrium price.

Which of the following would cause both the equilibrium price and equilibrium quantity of cotton (assume that cotton is a normal good)to increase?

If the price of gasoline increases,what will be the impact in the market for public transportation?

Market equilibrium occurs where supply equals demand.

Assume that the hourly price for the services of tarot card readers has risen and sales of these services have also risen.One can conclude that

The income effect of a price change refers to the change in the quantity demanded of a good that results from a change in the price of a substitute product.

A positive technological change will cause the supply of a good to increase.

If the price of peaches,a substitute for plums,decreases the demand for plums will increase.

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?

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

If,in the market for oranges,the supply has increased then

In February,market analysts predict that the price of titanium will rise in March.What happens in the titanium market in February,holding everything else constant?