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

All else equal,a ________ of display screens used in the manufacture of tablet computers would shift the ________ curve for tablet computers to the left.

During the recession of 2007-2009,several casual dining restaurants experienced a drop in business as many consumers chose to become more in spending their declining incomes.The decrease in demand due to falling income indicates that meals sold in casual restaurants are considered

In much of Europe,the legal age to obtain a driver's license is 18.If the legal driving age in the United States was changed to 18,how would this affect the market for new automobiles? The market for automobile insurance?

During the recession of 2007-2009,Subway experienced increased sales.This increase in demand for food such as a Subway sandwich indicates that Subway sandwiches are inferior goods,which in economic terms means

Figure 3-5 -Refer to Figure 3-5.At a price of $15,the quantity sold

Which of the following is evidence of a shortage of chocolate?

Suppose that when the price of ice cream increases,Liza decreases her purchase of hot fudge.To Liza,

If in the market for apples the supply has decreased then

According to a recent study,"Stricter college alcohol policies,such as raising the price of alcohol,or banning alcohol on campus,decrease the number of students who use marijuana." On the basis of this information,how would you describe alcohol and marijuana?

In July,market analysts predict that the price of gold will rise in August. What happens in the gold market in July,holding everything else constant?

Figure 3-6 -Refer to Figure 3-6. The figure above represents the market for coffee grinders. Compare the conditions in the market when the price is $15 and when the price is $21. Which of the following describes how the market differs at these prices?

The growing popularity of energy conservation has enticed large home improvement stores like Home Depot and Lowes to offer tankless water heaters.How does the fact that home improvement stores now offer these products affect the tankless water heater market?

The demand for medical services in the United States is expected to increase in upcoming years because

Digital video recorders (DVRs)were introduced to the market in 1999,and new technology has allowed for the cost of manufacturing the recorders to decline significantly since the initial introduction.How did this change in technology affect the market for DVRs?

In recent years the cost of producing wines in the U.S.has increased largely due to rising rents for vineyards.At the same time,more and more Americans prefer wine over beer. Which of the following best explains the effect of these events in the wine market?

If in the market for bananas the supply curve has shifted to the right,then

What are the five most important variables that shift the market supply curve?

Figure 3-7 -Refer to Figure 3-7.Assume that the graphs in this figure represent the demand and supply curves for laptop computers. Which panel best describes what happens in this market when the price of computer hard drives falls?

By drawing a demand curve with price on the vertical axis and quantity on the horizontal axis,economists assume that the most important determinant of the demand for a good is

Assume that the hourly price for the services of personal trainers has risen and sales of these services have also risen. One can conclude that