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

In response to a shortage the market price of a good will rise; as the price rises,the demand will decrease and supply will increase until equilibrium is reached.

Figure 3-7 -Refer to Figure 3-7.Assume that the graphs in this figure represent the demand and supply curves for blu-ray discs.Which panel best describes what happens in this market if there is a substantial increase in the price of blu-ray players?

Which of the following would cause an increase in the supply of cheese?

An ________ is represented by a rightward shift of the demand curve while an ________ is represented by a movement along a given demand curve.

If the price of propane-fueled gas grills was to decrease,then

Figure 3-8 -Refer to Figure 3-8.The graph in this figure illustrates an initial competitive equilibrium in the market for motorcycles at the intersection of D₂ and S₁ (point C).Which of the following changes would cause the equilibrium to change to point B?

An increase in the price of MP3 players will result in

All else equal,a shortage of display screens used in the manufacture of tablet computers would cause the

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

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

If a decrease in income leads to an increase in the demand for macaroni,then macaroni is

If the quantity demanded for a product exceeds the quantity supplied,the market price will rise until

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

At market equilibrium,

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

How does the increasing use of digital cameras affect the market for traditional camera film?

What are the five most important variables that shift the market supply curve?

At a product's equilibrium price

Which of the following statements is true?

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