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

Assume that the price for lawn care has fallen and sales of lawn care services have also fallen.One can conclude that

If pilots and flight attendants agree to wage and benefit reductions in the wake of the financial difficulties in the airline industry,what impact would this have on the supply and demand in the market for airline service,assuming no other changes take place in this market?

Suppose consumer preference for beef starts to rise while the cost of raising beef continues to rise.In the market for beef,this would be represented by the equilibrium price ________ and the equilibrium quantity ________.

A ________ demand curve for shampoo would be caused by a change in the price of shampoo.

Electric car enthusiasts want to buy more electric cars at a lower price.All of the following events would have this effect except

Would a change in the price of in-line skates cause a change in the supply of in-line skates? Why or why not?

Suppose a positive technological change in the production of disease-resistant corn caused the price of corn to fall.Holding everything else constant,how would this affect the market for wheat (a substitute for corn)?

If you are considering buying either an Apple iPhone or a Samsung Galaxy,and you choose the Samsung only because the price is lower,then you consider

For each of the following pairs of products state which are complements,which are substitutes,and which are unrelated. a.Swim fins and scuba tanks b.Coca Cola and Volkswagens c.Printers and ink cartridges d.Ice and ice chests e.Heineken and Corona

Figure 3-1 -Refer to Figure 3-1.A decrease population would be represented by a movement from

Figure 3-7 -Refer to Figure 3-7.Assume that the graphs in this figure represent the demand and supply curves for frozen yogurt.Which panel describes what happens in the market for frozen yogurt when the price of ice cream,a substitute product,increases?

Figure 3-7 -Refer to Figure 3-7.Assume that the graphs in this figure represent the demand and supply curves for ramen noodles,an inferior good.Which panel describes what happens in this market as a result of an increase in income?

Prices of commercial airline tickets (assume that this is a normal good)have fallen in recent months.Over this same period,the price of jet fuel has risen and consumer incomes have fallen.Which of the following best explains the falling prices of airline tickets?

If the demand for a product decreases and the supply of the product does not change,equilibrium price and equilibrium quantity will both increase.

The law of demand implies,holding everything else constant,that as the price of yogurt

An increase in the demand for peanuts due to changes in consumer tastes,accompanied by an increase in the supply of peanuts as a result of favorable growing conditions,will result in

An increase in quantity supplied is represented by a rightward shift of the supply curve.

Figure 3-7 -Refer to Figure 3-7.Assume that the graphs in this figure represent the demand and supply curves for laptop computers.Which panel best describes what happens in this market when the price of computer hard drives falls?

What is the difference between a demand schedule and a demand curve?

If the price of gasoline increases,what will be the impact in the market for public transportation?