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

Explain the difference between substitutes and complements.

The phrase "demand has decreased" means that

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.If the price of cashews falls from $4 to $2,the market quantity demanded would

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

Market equilibrium occurs where the quantity supplied is equal to the quantity demanded.

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 D₁ and S₂ (point B) Which of the following changes would cause the equilibrium to change to point C?

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

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 $75,the quantity demanded in the market would be

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

By drawing a demand curve with ________ on the vertical axis and ________ on the horizontal axis,economists assume that the most important determinant of the demand for a good is the ________ of the good.

Figure 3-4 -Refer to Figure 3-4.At a price of $20,how many units will be sold?

Studies have shown links between calcium consumption and a reduction in osteoporosis.How does this affect the market for calcium?

Holding everything else constant,an increase in the price of MP3 players will result in

A surplus is defined as the situation that exists when the quantity of a good supplied is greater than the quantity demanded.

Figure 3-4 -Refer to Figure 3-4.If the price is $10,

Ranchers can raise either cattle or sheep on their land.Which of the following would cause the supply of sheep to increase?

Assume that the price for swimming pool maintenance services has risen and sales of these services have fallen.One can conclude that

Figure 3-1 -Refer to Figure 3-1.An increase in the price of a complement 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 women's clothing.Which panel best describes what happens in this market when the wages of seamstresses rise?

Which of the following is evidence of a shortage of walnuts?