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

Figure 3-4 -Refer to Figure 3-4.At a price of $10,how many units will be sold?

If a decrease in income leads to in a decrease in the demand for mac and cheese,then mac and cheese is

The Internet has created a new category in the book selling market,namely,the 'barely used' book.How does the availability of barely used books affect the market for new books?

Assume that the hourly price for the services of tarot card readers has risen and sales of these services have also risen.One can conclude that

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

Figure 3-6 -Refer to Figure 3-6.The figure above represents the market for canvas tote bags.Compare the conditions in the market when the price is $50 and when the price is $35.Which of the following describes how the market differs at these prices?

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

Which of the following statements is true?

The ________ effect refers to the change in quantity demanded for a good that results from the effect of a change in the good's price on consumers' purchasing power.

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

What are the five variables that will shift the demand curve?

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

Which of the following would cause an increase in the supply of peanut butter?

Figure 3-8 -Refer to Figure 3-8.The graph in this figure illustrates an initial competitive equilibrium in the market for apples at the intersection of D₂ and S₂ (point

Explain how it would be possible for the equilibrium price and equilibrium quantity to both increase in the market for motorcycles if consumer preference for motorcycles increases and the number of motorcycle manufacturers decreases.

Let D = demand,S = supply,P = equilibrium price,Q = equilibrium quantity.What happens in the market for tropical hardwood trees if the governments restrict the amount of forest lands that can be logged?

Market equilibrium occurs where supply equals demand.

If the number of firms producing mouthwash increases and consumer preference for mouthwash increases,the equilibrium price of mouthwash will definitely increase.

Technological advances have resulted in lower prices for digital cameras.What is the impact of this on the market for traditional (non-digital)cameras?

A shortage is defined as the situation that exists when the quantity of a good supplied is greater than the quantity demanded.