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

Table 3-3 Rest of Kona Coffee Luke's Ravi's Market Market Tea Quantity Quantity Quantity Quantity Price per lb. Demanded Demanded Demanded Demanded (dollars) (lbs.) (lbs.) (lbs.) (lbs.) \ 10 3 0 23 8 9 3 32 6 14 7 68 5 18 12 85 4 22 18 110 -Refer to Table 3-3.The table above shows the demand schedules for Kona coffee of two individuals (Luke and Ravi)and the rest of the market.At a price of $6,the quantity demanded in the market would be

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

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

The popularity of digital cameras has enticed large discount stores like Walmart and Costco to offer digital photo printing services.How does the offering of the printing service by Walmart and Costco affect the digital photo printing market?

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

Figure 3-2 -Refer to Figure 3-2.A decrease in the price of substitutes in production would be represented by a movement from

Figure 3-7 -Refer to Figure 3-7.Assume that the graphs in this figure represent the demand and supply curves for coffee.What happens in this market if buyers expect the price of coffee to rise?

Figure 3-2 -Refer to Figure 3-2.A decrease in the number of firms in the market would be represented by a movement from

One would speak of a change in the quantity of a good supplied,rather than a change in supply,if

How does the decreasing use of DVD players affect the market for prerecorded DVDs?

A positive technological change will cause the supply of a good to increase.

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.

If a demand curve shifts to the right,then

What are the five variables that will shift the demand curve?

Holding everything else constant,an increase in the price of raisins will result in

The supply curve for watches

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

By 2017,Pepsi and Coke were attempting to increase their profits in the bottled water market by introducing premium water brands.Pepsi and Coke introduced LIFEWTR and Smartwater,respectively,while competitors like Nestle and Danone produced their own versions of premium water.The premium water brands marketed to compete with LIFEWTR and Smartwater would be considered

Let D = demand,S = supply,P = equilibrium price,Q = equilibrium quantity.What happens in the market for solar panels if the government offers tax breaks to encourage manufacturers to produce more solar panels?

If the price of peaches,a substitute for plums,decreases the demand for plums will increase.