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

If the price of grapefruit rises, the substitution effect due to the price change will cause a decrease in the:

When the price of a good increases, consumers buy a smaller quantity because of the ________ effect and the ________ effect.

The market for tablet computers has grown rapidly over the past few years. Following the successful launch of the iPad in 2010 with nearly 20 million sales and growing to 310 million in 2016, companies such as Samsung, Dell, Microsoft, Amazon, Google and many others have all introduced products to compete with the iPad. The tablets introduced to compete with the iPad would be considered:

Since more cars come equipped with navigation systems built in, in the market for 'after-market' GPS systems, there will be:

Some graziers can raise either cattle or sheep on their land. Which of the following would cause the supply of sheep to increase?

A decrease in the equilibrium quantity for a product will result when:

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

Figure 3.8 -Refer to Figure 3.8. The graph in this figure illustrates an initial competitive equilibrium in the market for apples at the intersection of D₁ and S₁ (point A). If there is a shortage of apples how will the equilibrium point change?

Figure 3.8 -Refer to Figure 3.8. The graph in this figure illustrates an initial competitive equilibrium in the market for apples at the intersection of D₁ and S₁ (point A). If there is an increase in the wages of apple workers and an increase in the price of oranges, a substitute for apples, the equilibrium could move to which point?

Figure 3.5 -Refer to Figure 3.5. At a price of $5, the quantity sold:

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

'Quantity supplied' refers to the amount of a good or service that a firm is willing and able to supply at a given price.

The income effect explains why there is an inverse relationship between the price of a product and the quantity of the product demanded.

Figure 3.1 -Refer to Figure 3.1. A increase in taste or preference for the good would be represented by a movement from:

With the advent of online classes and e-learning, a new category in the textbook market, the 'virtual rental' book has become a possible substitute to new book purchases. How does the availability of virtual rental books affect the market for new books?

If the quantity of grapes demanded increases when the price of grapes falls, economists would describe this as:

Assume there is a shortage in the market for digital music players. Which of the following statements correctly describes this situation?

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:

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

How is the market for digital photo printing paper affected by technological advancements in the production and quality of digital photography?