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

If the price of a product is above equilibrium,what forces it down?

Figure 3-5 -Refer to Figure 3-5.At a price of $10,the quantity sold

Figure 3-7 -Refer to Figure 3-7.Assume that the graphs in this figure represent the demand and supply curves for rice.What happens in this market if buyers expect the price of rice to fall?

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

Select the phrase that correctly completes the following statement.'An increase in input prices caused a decrease in the supply of baseballs.As a result,________.'

Figure 3-4 -Refer to Figure 3-4.At a price of $15,how many units will be sold?

For each of the following pairs of products,state which are complements,which are substitutes,and which are unrelated. a.Blu-ray discs and video-on-demand b.Fiat 500 and Mini Cooper S c.Toothpaste and toothbrush d.Popcorn and snowboards e.Razors and razor blades

If,in the market for oranges,the supply has increased then

The cost of raising beef cattle has risen at the same time as consumer preference for beef has fallen.In the market for beef,this would be represented by the equilibrium price ________ and the equilibrium quantity ________.

The phrase 'demand has decreased' means that

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

All else equal,the decrease in consumer preference predicted by Apple for its iPhone 5 would be represented by a

In a perfectly competitive market,there are ________ buyers and ________ sellers.

Positive technological change in the production of LCD televisions caused the price of LCD televisions to fall.Holding everything else constant,how would this affect the market for Blu-ray players (a complement to LCD televisions)?

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

Figure 3-8 -Refer to Figure 3-8.The graph in this figure illustrates an initial competitive equilibrium in the market for sugar at the intersection of D₁ and S₁ (point A).If there is an increase in the price of fertilizer used on sugar cane and there is a decrease in tastes for sugar-sweetened soft drinks,how will the equilibrium point change?

Quantity supplied refers to the amount of a good or service that a firm is willing and able to supply at a given price.

Orange juice drinkers want to consume more orange juice at a lower price.Which of the following events would have this effect?

If,in response to an increase in the price of chocolate,the quantity of chocolate demanded decreases,economists would describe this as

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