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

As the number of firms in a market increases, the supply curve will shift to the left and the equilibrium price will rise.

Figure 3.16 Alt text for Figure 3.16: In figure 3.16, a graph plotting intersecting demand and supply curves represents the change in equilibrium point in the motorcycle market with the increase in price of engines and wages of motorcycle manufacturers. Long description for Figure 3.16: The x-axis is labelled, Quantity and the y-axis is labelled, Price.Curve D1 is a straight line which slopes down from the top left corner to the bottom right corner.Curve D2 is parallel with curve D1, but is plotted to the left.Curve S1 is a straight line which slopes up from the bottom right corner to the top left corner.Curve S2 is parallel to curve S1, but is plotted to the left.The 4 curves intersect at 4 points; A, B, on the right side of the lines, and C and D, on the left sides of the lines -Refer to Figure 3.16.The graph in this figure illustrates an initial competitive equilibrium in the market for motorcycles at the intersection of D₁ and S₁ (point

Figure 3.4 Alt text for Figure 3.4: In figure 3.4, a graph of the effect of technological advancement on supply curve. Long description for Figure 3.4: The x-axis is labelled, Quantity, and the y-axis is labelled, Price.Curve Supply, S1, is a straight line which slopes up from the bottom left corner to the top right corner.2 points, A and B, are marked in the middle of curve S1.Curve S2 follows the same slope as curve S1, but is plotted to the right.A right pointing arrow indicates the change from curve S1 to curve S2. -Refer to Figure 3.4.A decrease in the price of inputs would be represented by a movement from

Figure 3.8 Alt text for Figure 3.8: In figure 3.8, a graph plotting intersecting supply and demand curves represents the market for canvas tote bags. Long description for Figure 3.8: The x-axis is labelled, Quantity, with the values 0, 10, 20, 50, 75, and 100 marked.The y-axis is labelled, Price, with the values 0, 15, 25, and 50 dollars marked.Curve D is a straight line which slopes down from the top left corner to the bottom right corner.Curve S is a straight line which begins in the bottom left corner and slopes up to the top right corner.The equilibrium of the 2 curves is (50,25).The point plotted on curve S to the left of equilibrium is (20,15).The point plotted on curve D to the right of point of equilibrium is (75,15).The point plotted to the right of equilibrium on curve S is (100,50).The point plotted to the right of the equilibrium on curve D is (10,50). -Refer to Figure 3.8.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?

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

If consumers believe the price of iPads will decrease in the future, this will cause the demand for iPads to decrease now.

A change in supply is represented by a shift of the supply curve.

The more substitutes there are for a good

Figure 3.14 Alt text for Figure 3.14: In figure 3.14, a graph plotting intersecting demand and supply curves represents the change in equilibrium point in the apple market with the decrease in the price of a substitute fruit, orange and the increase in the wages of apple workers. Long description for Figure 3.14: The x-axis is labelled, Quantity and the y-axis is labelled, Price.Curve D1 is a straight line which slopes down from the top left corner to the bottom right corner.Curve D2 is parallel with curve D1, but is plotted to the left.Curve S1 is a straight line which slopes up from the bottom right corner to the top left corner.Curve S2 is parallel to curve S1, but is plotted to the left.The 4 curves intersect at 4 points; A, B, on the right side of the lines, and C and D, on the left sides of the lines. -Refer to Figure 3.14.The graph in this figure illustrates an initial competitive equilibrium in the market for apples at the intersection of D₁ and S₁ (point

Which of the following statements is true?

If the quantity of nail polish supplied is represented by the equation Q_S = -3 + 2P, then the corresponding price of nail polish is represented by the equation

Which of the following statements is true?

Figure 3.2 Alt text for Figure 3.2: In figure 3.2, a graph of the effect of an increase in the price of a complement on demand curve. Long description for Figure 3.2: The x-axis is labelled, Quantity, and y-axis is labelled, Price.Curve Demand, D1, is a straight line which slopes down from the top left corner to the bottom right corner.Curve D2 follows the same slope as curve D1, but is plotted to the right.2 points, A and B, are plotted in the middle of curve D1.A right pointing arrow indicates the change from curve D1 to curve D2. -Refer to Figure 3.2.An increase in the price of a complement would be represented by a movement from

If the quantity of tacos demanded is represented by the equation Q_D = 20 - 0.5P, then the corresponding price of tacos is represented by the equation

As baby boomers age, we would expect

Figure 3.4 Alt text for Figure 3.4: In figure 3.4, a graph of the effect of technological advancement on supply curve. Long description for Figure 3.4: The x-axis is labelled, Quantity, and the y-axis is labelled, Price.Curve Supply, S1, is a straight line which slopes up from the bottom left corner to the top right corner.2 points, A and B, are marked in the middle of curve S1.Curve S2 follows the same slope as curve S1, but is plotted to the right.A right pointing arrow indicates the change from curve S1 to curve S2. -Refer to Figure 3.4.An increase in the expected future price of the product would be represented by a movement from

The phrase "demand has increased" means that

Discuss the correct and incorrect economic analysis in the following statements. "Unifor (the union that represents Canadian auto workers, among other industries)has successfully negotiated a 9 percent increase in wages for its workers.This increase in the wage rate causes an increase in demand for automobiles, since many consumers now have greater incomes, and also causes a decrease in supply of automobiles because the cost of production has increased.These effects cancel each other out resulting in no change in the equilibrium price and quantity in the automobile market."

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

An increase in the price of music streaming services will result in