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

In July,market analysts predict that the price of gold will rise in August.What happens in the gold market in July,holding everything else constant?

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

If the price of pork rinds falls,the substitution effect due to the price change will cause

Holding everything else constant,a decrease in the price of GPS systems will result in

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.a decrease in income and the good is a normal good b.a decrease in income and the good is an inferior good c.an increase in the price of a substitute good d.an increase in the price of a complementary good e.a decrease in the taste for the good f.an increase in population g.a decrease in the expected future price of the good

Farmers can plant either corn or soybeans in their fields.Which of the following would cause the supply of soybeans to increase?

Which of the following would shift the supply curve for energy drinks to the left?

The popularity of digital cameras has enticed large discount stores like Wal-Mart and Costco to offer digital photo printing services.How does this affect the digital photo printing market?

In September,buyers of silver expect that the price of silver will rise in October.What happens in the silver market in September,holding all else constant?

An increase in the equilibrium quantity of a product will result

A decrease in the demand for eggs due to changes in consumer tastes,accompanied by a decrease in the supply of eggs as a result of an outbreak of Avian flu,will result in

Assume there is a surplus in the market for hybrid automobiles.Which of the following statements correctly describes this situation?

Select the phrase that correctly completes the following statement."A decrease in the number of manufacturers caused a decrease in the supply of sailboats.As a result,

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

Market equilibrium occurs where the quantity supplied is equal to the quantity demanded.

Figure 3-1 -Refer to Figure 3-1.An increase in the price of a substitute would be represented by a movement from

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

How has the growing popularity of factory outlet stores affected the market for clothing at retail department stores?

The growing popularity of energy conservation has enticed large home improvement stores like Home Depot and Lowes to offer tankless water heaters.How does the fact that home improvement stores now offer these products affect the tankless water heater market?

If the price of peaches,a substitute for plums,increases the demand for plums will decrease.