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

Olive oil producers want to sell more olive oil at a higher price.Which of the following events would have this effect?

If the demand for a product decreases and the supply of the same product increases,the equilibrium quantity will increase.

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

Which of the following would cause a decrease in the supply of peanut butter?

Figure 3-4 -Refer to Figure 3-4.If the current market price is $15,the market will achieve equilibrium by

Figure 3-8 -Refer to Figure 3-8.The graph in this figure illustrates an initial competitive equilibrium in the market for motorcycles at the intersection of D₂ and S₁ (point C) If the price of motorcycle side cars (a complement to motorcycles)decreases, and the wages of motorcycle workers increase, how will the equilibrium point change?

Suppose that when the price of ice cream increases,Liza decreases her purchase of hot fudge.To Liza

In January,buyers of gold expect that the price of gold will rise in February.What happens in the gold market in January,holding all else constant?

How does the decreasing use of traditional cameras affect the market for traditional camera film?

The phrase "demand has decreased" means that

Figure 3-7 -Refer to Figure 3-7.Assume that the graphs in this figure represent the demand and supply curves for women's clothing.Which panel best describes what happens in this market when the wages of seamstresses rise?

Table 3-1 Loose Leaf Tea Priceper lb. (dollars) Sunil's Quantity Demanded (lbs) Mia's Quantity Demanded (lbs) Rest af Market Quantity Demanded (lbs) Market Quantity Demanded (lbs) \ 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

Figure 3-4 -Refer to Figure 3-4.If the current market price is $10,the market will achieve equilibrium by

An inferior good is a good for which the quantity demanded increases as the price decreases,holding everything else constant.

An increase in the price of MP3 players will result in

A decrease in the demand for incandescent light bulbs due to changes in consumer tastes,accompanied by a decrease in the supply of incandescent light bulbs as a result of government restrictions,will result in

Article Summary A growing number of U.S. citizens are going to other countries for elective surgery procedures. Improved quality and significant cost savings abroad have attracted an increasing number of what are being referred to as American medical tourists, especially those who either do not have insurance or whose insurance does not cover the desired procedure. As few as five years ago, Americans tended to travel to countries such as Thailand or Mexico for the procedures, but many are now choosing to go to Europe, where governments and hospitals are now publicizing these services. Many of the procedures being done overseas are joint replacement, and partly in response to the number of patients going abroad for these procedures, programs are being developed to reduce the cost of these surgeries in the United States. -Refer to the Article Summary.If European governments and hospitals continue to publicize their existing services to American medical tourists and more Americans consider joint-replacement surgery to improve their quality of life,what will happen in the market for joint-replacement surgery as a result of these two factors?

A ________ demand curve for shampoo would be caused by a change in the price of shampoo.

Which of the following would cause both the equilibrium price and equilibrium quantity of potatoes (assume that potatoes are an inferior good)to decrease?

Technological advancements have led to lower prices and an increase in the sale of color laser printers.How does this affect the market for traditional inkjet printers?