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

Which of the following would shift the supply curve for MP3 players to the right?

Figure 3-1 -Refer to Figure 3-1.A decrease in the price of the product would be represented by a movement from

As the number of firms in a market decreases,the supply curve will shift to the left and the equilibrium price will rise.

Danielle Ocean pays for monthly pool maintenance for her home swimming pool.Last week the owner of the pool service informed Danielle that he will have to raise his monthly service fee because of increases in the price of pool chemicals.How is the market for pool maintenance services affected by this?

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

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

"Because apples and oranges are substitutes,an increase in the price of oranges will cause the demand for apples to increase.This initial shift in demand for apples results in a higher price for apples; this higher price will cause the demand curve for apples to shift to the right." Which of the following correctly comments on this statement?

All else equal,a shortage of display screens used in the manufacture of tablet computers would cause the equilibrium price of the tablet computers to ________ and the equilibrium quantity of the tablet computers to ________.

When deciding on which new products to develop,a firm must devote people,time,and money to designing a new product.Because any firm has only limited resources,it

From a supply perspective,what impact would an increase in the price of motorcycles have on the market for motorcycles?

Figure 3-7 -Refer to Figure 3-7.Assume that the graphs in this figure represent the demand and supply curves for potatoes and that steak and potatoes are complements.What panel describes what happens in this market when the price of steak rises?

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

If the price of a product is above equilibrium,what forces it down?

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

If more insurance companies decide to cover part of the price of voluntary 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?

Figure 3-1 -Refer to Figure 3-1.A decrease in taste or preference would be represented by a movement from

What would happen in the market for laser eye surgery if insurance companies started to cover a portion of the price of voluntary procedures?

A change in all of the following variables will change the market demand for a product except

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?

Tom Searchinger,a senior attorney at the Environmental Defense Fund,observed that generous farm subsidies have encouraged farmers to produce more corn and more wheat.How does this affect the market for fertilizer?