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

If the price of a product is expected to increase in the future,the supply today will increase.

Table 3-2 Rest of Caviar Ari's Sonia's Market Market Tea Quantity Quantity Quantity Quantity Price per lb. Demanded Demanded Demanded Demanded (dollars) (oz.) (oz.)) (oz.) (oz.) \ 75 6 0 46 65 18 6 64 55 28 14 136 45 36 24 170 35 44 36 220 -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.If the price of caviar rises from $65 to $75,the market quantity demanded would

Assume that microbrewery beer is a normal good.Prices of microbrewery beer have risen steadily in recent years.Over this same period,prices for fermenting vats used in beer making have also risen and consumer incomes have fallen.Which of the following best explains the rising prices of microbrewery beer?

Which of the following describes a characteristic of a perfectly competitive market?

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

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

An increase in the demand for LED light bulbs due to changes in consumer tastes,accompanied by an increase in the supply of LED light bulbs as a result of government subsidies,will result in

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

Figure 3-2 -Refer to Figure 3-2.A technological advancement would be represented by a movement from

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

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 increases and productivity increases. b.Income increases and the price of inputs decrease. c.The number of firms in the market decreases and income increases. d.Consumer preference increases and the price of a complement decreases. e.The price of a substitute in consumption decreases and the price of a substitute in production decreases.

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

A competitive market equilibrium is a market equilibrium with many buyers and sellers.

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

An increase in the price of pineapples will result in

The income effect of a price change refers to the change in the quantity demanded of a good that results from a change in purchasing power as a result of the price change.

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

Figure 3-2 -Refer to Figure 3-2.A decrease in productivity would be represented by a movement from

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

In recent years,the demand for orange juice in the United States has fallen and the supply of orange juice has also fallen,with the decrease in supply being larger than the decrease in demand.In this situation,the equilibrium price of orange juice will have ________ and the equilibrium quantity of orange juice will have ________.