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

Figure 3.6 -Refer to Figure 3.6. The figure above represents the market for canvas tote bags. Assume that the price of tote bags is $15. At this price:

If the price of refillable butane lighters was to decrease, then:

In a perfectly competitive market, there are ________ buyers and ________ sellers.

An overcapacity of LCD fabrication plants causes the price of LCD televisions to fall. How would this affect the market for Blu-ray DVD players (a complement to LCD televisions)if everything else is held constant?

The income effect of a price change refers to the change in the quantity demanded of a good that results from a change in purchasing power as a result of the price change.

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?

Figure 3.5 -Refer to Figure 3.5. At a price of $15, there would be a:

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:

If more insurance companies decide to cover part of the price of elective laser eye surgery and more doctors decide to enter the field of laser eye surgery, what will happen in the market for laser eye surgery as a result of these two factors?

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

How does the increasing use of streaming music services affect the market for compact discs?

Figure 3.4 -Refer to Figure 3.4. If the price is $15:

The demand curve for a good will shift leftward if there is:

An increase in the price of pineapples will result in:

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

A movement along the demand curve for toothpaste would be caused by a change in:

Figure 3.1 -Refer to Figure 3.1. A decrease in the price of a substitute good would be represented by a movement from:

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

In June, buyers of titanium expect that the price of titanium will fall in July. What happens in the titanium market in June, holding everything else constant?

What is the difference between an 'increase in supply' and an 'increase in quantity supplied'?