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

Which of the following would cause the equilibrium price of white bread to decrease and the equilibrium quantity of white bread to increase?

Which of the following would cause a decrease in the equilibrium price and an increase in the equilibrium quantity of salmon?

Draw a supply and demand graph showing an equilibrium price of $50 and an equilibrium quantity of 200 units.Explain what would happen if the selling price was $75, and illustrate this on the graph.Explain what would happen if the selling price was $25, and illustrate this on the graph.Be sure to label each axis and curve on the graph.

What is the difference between a supply schedule and a supply curve?

If an increase in income leads to a decrease in the demand for popcorn, then popcorn is

Nearly a quarter of China's 1.3 billion people are under the age of 15.How will this affect high school enrollment over the next fifteen years? The labor market over the next fifteen years?

Explain the differences between a change in supply and a change in quantity supplied.

If consumers believe the price of LCD televisions will decrease in the future, this will cause the demand for LCD televisions to increase now.

Assume that both the demand curve and the supply curve for MP3 players shift to the right but the supply curve shifts more than the demand curve.As a result

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

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?

Let D = demand, S = supply, P = equilibrium price, and Q = equilibrium quantity.What happens in the market for electric vehicles if the government offers incentives to manufacturers to produce more electric vehicles?

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?

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

If the demand for a product decreases and the supply of the same product decreases, the equilibrium price will decrease.

In 2004, hurricanes destroyed a large portion of Florida's grapefruit crop.How did this affect the market price and market quantity of grapefruit?

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 S₂ (point B). Which of the following changes would cause the equilibrium to change to point C?

All else equal, the decrease in the price of complementary products for the Apple Watch, such as Sensoria's wearable technology, would

If, for a product, the quantity supplied exceeds the quantity demanded, the market price will fall until

Table 3-2 -Refer to Table 3-2.The table above shows the demand schedules for caviar of two individuals (Ari and Sonia)and the rest of the market.At a price of $75, the quantity demanded in the market would be