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

Holding everything else constant,a decrease in the price of GPS systems will result in

Article Summary World Tourism Day 2017, with its official celebration on September 27 in Qatar, was focused on sustainable tourism. Established by the United Nations World Tourism Organization (UNWTO), World Tourism Day has been celebrated since 1980, and the theme for 2017 was the "International Year of Sustainable Tourism for Development." The event was designed with two sessions: one focused on 'Tourism as a driver of economic growth', and the other 'Tourism and the Planet: committed to a greener future'. With over 1.2 billion travellers crossing international borders in 2016, and that number expected to grow to 1.8 billion by 2030, sustainable tourism is viewed by many as an important catalyst for diversification and economic growth. Source: Vicky Karantzavelou, " World Tourism Day 2017 celebrated on the theme Sustainable Tourism — a Tool for Development," traveldailynews.com, August 14, 2017 -Refer to the Article Summary.Assume that more global tourist destinations begin to offer and publicize sustainable tourism to American tourists and,due to the growing number of millennials attracted to sustainability,more Americans choose to embrace sustainable tourism.All else equal,what will happen in the market for sustainable tourism as a result of these two factors?

Suppose that when the price of hamburgers decreases,the Landry family decreases their purchases of chicken nuggets.To the Landry family

Figure 3-7 -Refer to Figure 3-7.Assume that the graphs in this figure represent the demand and supply curves for frozen yogurt.Which panel describes what happens in the market for frozen yogurt when the price of ice cream,a substitute product,increases?

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

Figure 3-1 -Refer to Figure 3-1.A decrease population would be represented by a movement from

An increase in the price of MP3 players will result in

An increase in input costs in the production of electric automobiles caused the price of electric automobiles to rise.Holding everything else constant,how would this affect the market for gasoline-powered automobiles (a substitute for electric automobiles)?

If the price of grapefruit rises,the substitution effect due to the price change will cause

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

If an increase in income leads to in an increase in the demand for peanut butter,then peanut butter is

If a firm expects that the price of its product will be lower in the future than it is today

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 the hurricane affect the equilibrium price and quantity of shrimp?

Suppose that when the price of strawberries decreases,Simone increases her purchase of whipped cream.To Simone

Assume that both the demand curve and the supply curve for MP3 players shift to the right but the demand curve shifts more than the supply curve.As a result

Harvey Rabbitt pays for monthly cable TV service.Last week,the cable company informed Harvey that his monthly cable price would go down because the city council has granted approval for three new cable companies to service his area.How is the market for cable TV services affected by this?

Figure 3-6 -Refer to Figure 3-6.The figure above represents the market for canvas tote bags.Compare the conditions in the market when the price is $50 and when the price is $35.Which of the following describes how the market differs at these prices?

Factory incentives on cell phones have encouraged consumers to upgrade their phones.How does this affect the market for bluetooth headsets?

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

Figure 3-7 -Refer to Figure 3-7.Assume that the graphs in this figure represent the demand and supply curves for Blu-ray discs.Which panel best describes what happens in this market if there is a substantial increase in the price of Blu-ray players?