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

What is the difference between an "increase in demand" and an "increase in quantity demanded"?

Orange juice drinkers want to consume more orange juice at a lower price.Which of the following events would have this effect?

For each of the following pairs of products,state which are complements,which are substitutes,and which are unrelated. a.Digital camera and memory card b.7Up and Mountain Dew c.Swimsuits and flip-flops d.Tylenol and cat food e.Photocopier and paper

An article in the Wall Street Journal in early 2001 noted two developments in the market for laser eye surgery.The first development concerned side effects from the surgery,including blurred vision.The second development was that the companies renting eye-surgery machinery to doctors had reduced their charges.In the market for laser eye surgeries,these two developments

Which of the following would cause an increase in the equilibrium price and decrease in the equilibrium quantity of watermelon?

Assume that both the demand curve and the supply curve for DVD players shift to the left but the demand curve shifts more than the supply curve.As a result

Explain the differences between a change in supply and a change in quantity supplied.

Suppose that when the price of hamburgers decreases,the Ruiz family increases their purchases of ketchup.To the Ruiz family

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

A change in quantity supplied is represented by a movement along the supply curve.

Peanut butter and jelly are complements.If the price of peanut butter increases,the demand for jelly will increase.

Table 3-6 Price per Bushel Quantity Demanded (bushels) Quantity Supplied (bushels) \ 2 40,000 0 4 36,000 4,000 6 30,000 8,000 8 24,000 16,000 10 20,000 20,000 12 18,000 28,000 14 12,000 36,000 16 6,000 40,000 -Refer to Table 3-6.The table contains information about the sorghum market.Use the table to answer the following questions. a.What are the equilibrium price and quantity of sorghum? b.Suppose the prevailing price is $6 per bushel.Is there a shortage or a surplus in the market? c.What is the quantity of the shortage or surplus? d.How many bushels will be sold if the market price is $6 per bushel? e.If the market price is $6 per bushel,what must happen to restore equilibrium in the market? f.At what price will suppliers be able to sell 36,000 bushels of sorghum? g.Suppose the market price is $14 per bushel.Is there a shortage or a surplus in the market? h.What is the quantity of the shortage or surplus? i.How many bushels will be sold if the market price is $14 per bushel? j.If the market price is $14 per bushel,what must happen to restore equilibrium in the market?

How does the increasing use of digital cameras affect the market for traditional camera film?

Use the following supply schedule for cherries to draw a graph of the supply curve.Be sure to label the supply curve and each axis,and show each point on the supply curve. Price (dollars per bushel) Quantity (thousands of bushels) 4 25 8 50 12 75 16 100 20 125

________ means the supply curve has shifted to the right,while ________ refers to a movement along a given supply curve in response to an increase in price.

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

Olive oil producers want to sell more olive oil at a higher price.Which of the following events would have this effect?

Select the phrase that correctly completes the following statement."An increase in input prices caused a decrease in the supply of baseballs.As a result ________."

If an increase in income leads to a decrease in the demand for popcorn,then popcorn is

A normal good is a good for which the demand increases as income decreases,holding everything else constant.