A) are costs associated with repairing something you already own. B) are important for optimal decision making. C) are costs that have already been paid and cannot be recaptured in any significant way. D) are costs that firms sink into marketing. A) are costs associated with repairing something you already own. B) are important for optimal decision making. C) are costs that have already been paid and cannot be recaptured in any significant way. D) are costs that firms sink into marketing.

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

The ________ effect refers to the change in quantity demanded of a good that results from the effect of a change in the good's price on consumers' purchasing power.

(Multiple Choice)

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Question 101

The income effect explains why there is an inverse relationship between the price of a product and the quantity of the product demanded.

(True/False)

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Question 102

If a firm has an incentive to increase supply now and decrease supply in the future,the firm expects that the

(Multiple Choice)

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Question 103

A decrease in the price of GPS systems will result in

(Multiple Choice)

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Question 104

Figure 3-4 -Refer to Figure 3-4.If the current market price is $10,the market will achieve equilibrium by

(Multiple Choice)

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Question 105

If the demand for a product decreases and the supply of the same product decreases,the equilibrium price will decrease.

(True/False)

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Question 106

What is the endowment effect?

(Multiple Choice)

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Question 107

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

(Multiple Choice)

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Question 108

Which of the following statements is true?

(Multiple Choice)

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Question 109

Figure 3-1 -Refer to Figure 3-1.A decrease in the price of a complementary good would be represented by a movement from

(Multiple Choice)

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Question 110

Sunk costs

(Multiple Choice)

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Question 111

If more insurance companies decide to cover part of the price of voluntary laser eye surgery,and more doctors decide to enter the field of laser eye surgery,what will happen in the market for laser eye surgery as a result of these two factors?

(Multiple Choice)

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Question 112

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

(True/False)

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Question 113

Figure 3-1 -Refer to Figure 3-1.If the product represented is an inferior good,an increase in income would be represented by a movement from

(Multiple Choice)

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Question 114

In February,market analysts predict that the price of titanium will rise in March.What happens in the titanium market in February,holding everything else constant?

(Multiple Choice)

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Question 115

Which of the following would cause both the equilibrium price and equilibrium quantity of cotton (assume that cotton is a normal good)to increase?

(Multiple Choice)

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Question 116

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

(Multiple Choice)

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Question 117

A new area of economics studies situations in which people appear to be making choices that do not seem to be economically rational.This area is called

(Multiple Choice)

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Question 118

Draw a demand curve and label it D₁.On the graph,illustrate an increase in demand and a decrease in demand,and label the curves D₂ and D₃,respectively.Starting on demand curve D₁,explain the shift that would result from each of the following events: a.an increase in income and the good is a normal good b.an increase in income and the good is an inferior good c.a decrease in the price of a substitute good d.a decrease in the price of a complementary good e.an increase in the taste for the good f.a decrease in population g.an increase in the expected future price of the good

(Essay)

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Question 119

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,

(Multiple Choice)

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Question 120

Showing 101 - 120 of 241

The ________ effect refers to the change in quantity demanded of a good that results from the effect of a change in the good's price on consumers' purchasing power.

The income effect explains why there is an inverse relationship between the price of a product and the quantity of the product demanded.

If a firm has an incentive to increase supply now and decrease supply in the future,the firm expects that the

A decrease in the price of GPS systems will result in

Figure 3-4 -Refer to Figure 3-4.If the current market price is $10,the market will achieve equilibrium by

If the demand for a product decreases and the supply of the same product decreases,the equilibrium price will decrease.

What is the endowment effect?

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

Which of the following statements is true?

Figure 3-1 -Refer to Figure 3-1.A decrease in the price of a complementary good would be represented by a movement from

Sunk costs

If more insurance companies decide to cover part of the price of voluntary laser eye surgery,and more doctors decide to enter the field of laser eye surgery,what will happen in the market for laser eye surgery as a result of these two factors?

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

Figure 3-1 -Refer to Figure 3-1.If the product represented is an inferior good,an increase in income would be represented by a movement from

In February,market analysts predict that the price of titanium will rise in March.What happens in the titanium market in February,holding everything else constant?

Which of the following would cause both the equilibrium price and equilibrium quantity of cotton (assume that cotton is a normal good)to increase?

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

A new area of economics studies situations in which people appear to be making choices that do not seem to be economically rational.This area is called

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,

Economics: Foundations and Models

Choices and Trade-Offs in the Market

Elasticity: The Responsiveness of Demand and Supply

Economic Efficiency,government Price Setting and Taxes

Technology,production and Costs

Firms in Perfectly Competitive Markets

Monopoly Markets

Monopolistic Competition and Oligopoly

The Markets for Labour and Other Factors of Production

Government Intervention in the Market

Social Policy and Inequality

Gdp: Measuring Total Production, income and Economic Growth

Unemployment and Inflation

Aggregate Demand and Aggregate Supply Analysis

Money,banks and the Reserve Bank of Australia

Monetary Policy

Fiscal Policy

Comparative Advantage and the Gains From International Trade

Macroeconomics in an Open Economy

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