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

If consumers believe the price of hybrid vehicles will decrease in the future,this will cause the demand for hybrid vehicles to decrease now.

All else equal,as the price of a product falls,the quantity supplied decreases.

Which of the following will not shift the demand curve for a good?

All else equal,a shortage of display screens used in the manufacture of tablet computers would cause the

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

What is the difference between a "change in demand" and a "change in quantity demanded"?

At market equilibrium,

Figure 3-4 -Refer to Figure 3-4. If the current market price is $25,the market will achieve equilibrium by

Figure 3-4 -Refer to Figure 3-4. At a price of $25,how many units will be sold?

Figure 3-8 -Refer to Figure 3-8. The graph in this figure illustrates an initial competitive equilibrium in the market for motorcycles at the intersection of D₂ and S₁ (point C) Which of the following changes would cause the equilibrium to change to point B?

Which of the following statements is true?

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

Figure 3-6 -Refer to Figure 3-6. The figure above represents the market for coffee grinders. Assume that the price of tote bags is $50. At this price:

Electric car enthusiasts want to buy more electric cars at a lower price.All of the following events would have this effect except

Figure 3-5 -Which of the following describes a characteristic of a perfectly competitive market?

If the population increases and input prices increase,the equilibrium price of a product will definitely increase.

Which of the following would cause an increase in the supply of cheese?

At a product's equilibrium price

Shrimp is an increasingly popular part of the American diet.Louisiana shrimpers who represent the bulk of the U.S.industry were almost all put out of business by Hurricane Katrina. How did this affect the equilibrium price and quantity of shrimp?