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

A decrease in the price of inputs will cause the supply curve for a product to shift to the right.

Which of the following would cause a decrease in the equilibrium price and decrease in the equilibrium quantity of papayas?

The market for smartphones has become very competitive.The increase in competition in this market is an example of how the market responds to

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

A decrease in the number of firms in a market will cause supply to increase.

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

For each of the following pairs of products state which are complements,which are substitutes,and which are unrelated. a.House plants and potato chips b.Eyeglasses and contact lenses c.Motorcycles and gasoline d.Smartphone and smartphone apps e.Red wine and white wine

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 3-1 -Refer to Figure 3-1.An increase in taste or preference would be represented by a movement from

The ________ effect of a price change refers to the impact of a change in the price of a good on a consumer's purchasing power.

What would happen in the market for knee replacement surgery if insurance companies started to cover a smaller portion of the cost of the surgery,and fewer doctors decide to enter the field of joint replacement surgery?

Hurricane Katrina damaged a large portion of refining and pipeline capacity when it swept through the Gulf coast states in August 2005.As a result of this,many gasoline distributors were not able to maintain normal deliveries.At the pre-hurricane equilibrium price (i.e.,at the initial equilibrium price),we would expect to see

Competitive market equilibrium is a market equilibrium with many buyers and sellers.

If the price of smartphones was to increase,then

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

Use the following supply schedule for cherries to draw a graph of the supply curve.Be sure to label the supply curve and each axis,and show each point on the supply curve.

Assume that the hourly price for the services of personal trainers has risen and sales of these services have also risen.One can conclude that

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

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.If the price of Kona coffee falls from $6 to $4,the market quantity demanded would

If in the market for bananas the supply curve has shifted to the right,then