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

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?

Which of the following would cause an increase in the supply of peanut butter?

Figure 3-8 -Refer to Figure 3-8.The graph in this figure illustrates an initial competitive equilibrium in the market for sugar at the intersection of D₁ and S₁ (point A) If there is an increase in the price of fertilizer used on sugar cane and there is a decrease in tastes for sugar-sweetened soft drinks, how will the equilibrium point change?

Assume that there is a surplus in the market for hybrid automobiles.Which of the following statements correctly describes this situation?

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

An increase in population results in an increase in demand.

A decrease in the demand for eggs due to changes in consumer tastes,accompanied by a decrease in the supply of eggs as a result of an outbreak of Avian flu,will result in

If the price of automobiles was to increase,then

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.At a price of $55,the quantity demanded in the market would be

Which of the following has occurred as the millennial generation has come of age?

Use the following demand schedule for apples to draw a graph of the demand curve.Be sure to label the demand curve and each axis,and show each point on the demand curve. Price (dollars per bushel) Quantity (thousands of bushels) 30 20 25 40 20 60 15 80 10 100

For products like virtual reality headsets,________ products such as games produced for use with the headsets have shown to be needed for the headsets to compete with ________ products like game consoles.

If the demand for a product increases and the supply of the same product increases,the equilibrium price will increase.

A decrease in the demand for soft drinks due to changes in consumer tastes,accompanied by an increase in the supply of soft drinks as a result of reductions in input prices,will result in

All else equal,as the price of a product falls,the quantity supplied increases.

If pilots and flight attendants agree to wage and benefit reductions in the wake of the financial difficulties in the airline industry,what impact would this have on the supply and demand in the market for airline service,assuming no other changes take place in this market?

In April,market analysts predict that the price of titanium will fall in May.What happens in the titanium market in April,holding everything else constant?

One would speak of a movement along a supply curve for a good,rather than a change in supply,if

For each of the following pairs of products,state which are complements,which are substitutes,and which are unrelated. a.Blu-ray discs and video-on-demand b.Fiat 500 and Mini Cooper S c.Toothpaste and toothbrush d.Popcorn and snowboards e.Razors and razor blades

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