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

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

Figure 3-5 -Refer to Figure 3-5.At a price of $15,the quantity sold

Which of the following describes a characteristic of a perfectly competitive market?

Shrimp is an increasingly popular part of the American diet.Louisiana shrimpers who represent the bulk of the U.S.industry were almost all put out of business by Hurricane Katrina.How did this affect the equilibrium price and quantity of shrimp?

Figure 3-3 -Refer to Figure 3-3.The figure above shows the supply and demand curves for two markets: the market for original Michelangelo sculptures and the market for Ray Ban sunglasses.Which graph most likely represents which market?

If the demand for a product decreases and the supply of the same product increases,the equilibrium quantity will increase.

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

Last month,the Tecumseh Corporation supplied 400 units of three-ring binders at $6 per unit.This month,the company supplied the same quantity of binders at $4 per unit.Based on this evidence,Tecumseh has experienced

Figure 3-6 -Refer to Figure 3-6.The figure above represents the market for coffee grinders.Compare the conditions in the market when the price is $15 and when the price is $21.Which of the following describes how the market differs at these prices?

A surplus is defined as the situation that exists when the quantity of a good supplied is greater than 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 motorcycles at the intersection of D₂ and S₁ (point C).If the price of motorcycle side cars (a complement to motorcycles)decreases,and the wages of motorcycle workers increase,how will the equilibrium point change?

A positive technological change will cause the quantity supplied of a good to increase.

If a decrease in income leads to in a decrease in the demand for ice cream,then ice cream is

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

When Toyota introduced its 2010 Prius,it announced that the average retail price of the 2010 model would be lower than the average retail price was for the equivalent 2009 model.Which of the following would explain the price differential?

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

Table 3-1 -Refer to Table 3-1.The table above shows the demand schedules for Kona coffee of two individuals (Luke and Ravi)and the rest of the market.At a price of $4,the quantity demanded in the market would be

Figure 3-4 -Refer to Figure 3-4.If the price is $20,

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

A change in which variable will change the market demand for a product?