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

Which of the following would shift the supply curve for energy drinks to the left?

George Gnat subscribes to a monthly pest control service for his home. Last week the owner of the service informed George that he will have to raise his monthly service fee because of increases in the price of gasoline used by his workers on their service trips.How is the market for pest control services affected by this?

Suppose that when the price of hamburgers increases,the Ruiz family increases their purchases of hot dogs. To the Ruiz family,

Select the phrase that correctly completes the following statement. "A decrease in the number of manufacturers caused a decrease in the supply of sailboats.As a result.________."

Figure 3-1 -Refer to Figure 3-1.An increase in the price of a complement would be represented by a movement from

Hurricane Katrina damaged a large portion of refining and pipeline capacity when it swept through the Gulf coast states in August 2005.As a result of this,many gasoline distributors were not able to maintain normal deliveries.At the pre-hurricane equilibrium price (i.e.,at the initial equilibrium price),we would expect to see

"Because Coke and Pepsi are substitutes,a decrease in the price of Pepsi will cause the demand for Coke to decrease. This initial shift in demand for Coke results in a lower price for Coke; this lower price will cause the demand curve for Coke to shift to the left." Which of the following correctly comments on this statement?

Figure 3-4 -Refer to Figure 3-4. If the price is $25,

Figure 3-1 -Refer to Figure 3-1.If the product represented is a normal good,an increase in income would be represented by a movement from

The law of demand implies,holding everything else constant,that as the price of yogurt

Farmers can plant either corn or soybeans in their fields. Which of the following would cause the supply of soybeans to increase?

An increase in the equilibrium price for a product will result

If,in response to a decrease in the price of coffee,the quantity demanded of coffee increases,economists would describe this as

Market equilibrium occurs where the quantity supplied is equal to the quantity demanded.

If a decrease in income leads to in a decrease in the demand for ice cream,then ice cream is

In each of the following situations,list what will happen to the equilibrium price and the equilibrium quantity for a particular product,which is an inferior good. a.The population decreases and productivity increases b.The income increases and the price of inputs increase c.The number of firms in the market decreases and income decreases d.Consumer preference decreases and the price of a complement increases e.The price of a substitute in consumption increases and the price of a substitute in production increases

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

Aging baby boomers are expected to have an effect on the housing market because

The supply curve for umbrellas

Factory incentives on cell phones have encouraged consumers to upgrade their phones.How does this affect the market for bluetooth headsets?