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

Figure 3-5 -Refer to Figure 3-5.At a price of $20,the quantity sold

The decline in the popularity of clothing made from animal fur has enticed large department stores like J.C.Penney and Sears to discontinue sales of animal-fur products.How does discontinuing sales of these products by J.C.Penney and Sears affect the animal-fur clothing market?

In September,buyers of silver expect that the price of silver will rise in October.What happens in the silver market in September,holding all else constant?

Which of the following will shift the demand curve for a good?

Quantity supplied refers to the amount of a good or service that a firm is willing and able to supply at a given price.

Figure 3-2 -Refer to Figure 3-2.A decrease in the price of inputs 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 tuna.Which panel best describes what happens in this market when there is a decrease in the productivity of commercial fishermen?

If the price of gasoline decreases,what will be the impact in the market for public transportation?

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

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

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

If the price of orchids falls,the substitution effect due to the price change will cause

According to the Australian Wool Innovation,severe drought conditions in Australia contributed to the lowest level of wool production in 50 years.This record low production has driven up prices sharply in Australian wool markets.Meanwhile,the price of raw cotton increased significantly for the first time in many years. a.Illustrate this observation with one demand and supply graph for the market for Australian wool and another demand and supply graph for raw cotton. b.Make sure that your graphs clearly show (1)the initial equilibrium before the decrease in the supply of Australian wool and (2)the final equilibrium. c.Use arrows to indicate any shifts in the demand and supply curves for each market. d.Label your graphs fully and write an explanation of your work.

Table 3-4 Rest of Cashews Jordy's Amy's Market Market Tea Quantity Quantity Quantity Quantity Price per lb. Demanded Demanded Demanded Demanded (dollars) (lbs.) (lbs.) (lbs.) (lbs.) \ 10 1 1 50 8 2 3 70 6 3 5 95 4 5 9 128 2 8 14 156 -Refer to Table 3-4.The table above shows the demand schedules for cashews of two individuals (Jordy and Amy)and the rest of the market.At a price of $10,the quantity demanded in the market would be

A movement along the demand curve for toothpaste would be caused by

Figure 3-4 -Refer to Figure 3-4.If the price is $15

Suppose that when the price of raspberries increases,Lonnie increases his purchases of papayas.To Lonnie

A decrease in the equilibrium price for a product will result

The substitution effect of a price change refers to

Which of the following is the correct way to describe equilibrium in a market?