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

If tablet computers are considered substitutes for e-readers, the decline in the price of tablet computers would, all else equal,

In February, market analysts predict that the price of titanium will rise in March. What happens in the titanium market in February, holding everything else constant?

In most countries in South America, the legal driving age is 18. If the legal driving age in the United States was raised from 16 to 18, how would this affect the market for new and used automobiles? What would happen to the equilibrium price and quantity of new and used automobiles?

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

Suppose that when the price of strawberries decreases, Simone increases her purchase of whipped cream. To Simone,

Figure 3-7 -Refer to Figure 3-7. Assume that the graphs in this figure represent the demand and supply curves for women's clothing. Which panel best describes what happens in this market when the wages of seamstresses rise?

A supply curve

Figure 3-1 -If the price of music downloads was to decrease, then

A(n) ________ is represented by a leftward shift of the demand curve while a(n) ________ is represented by a movement along a given demand curve.

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

A decrease in the demand for soft drinks due to changes in consumer tastes, accompanied by an increase in the supply of soft drinks as a result of reductions in input prices, will result in

Table 3-5 -Refer to Table 3-5. The table contains information about the corn market. Use the table to answer the following questions. a. What are the equilibrium price and quantity of corn? b. Suppose the prevailing price is $9 per bushel. Is there a shortage or a surplus in the market? c. What is the quantity of the shortage or surplus? d. How many bushels will be sold if the market price is $9 per bushel? e. If the market price is $9 per bushel, what must happen to restore equilibrium in the market? f. At what price will suppliers be able to sell 22,000 bushels of corn? g. Suppose the market price is $21 per bushel. Is there a shortage or a surplus in the market? h. What is the quantity of the shortage or surplus? i. How many bushels will be sold if the market price is $21 per bushel? j. If the market price is $21 per bushel, what must happen to restore equilibrium in the market?

Technological advancements have led to lower prices and an increase in the sale of color laser printers. How does this affect the market for traditional inkjet printers?

The market for smart phones has grown rapidly over the past few years, due in part to the overwhelming success of the Apple iPhone. Following the successful launch of the iPhone in 2007, companies such as Samsung, HTC, and LG have all introduced products to compete with the iPhone. The smart phones introduced to compete with the iPhone would be considered

Figure 3-8 -What would happen in the market for laser eye surgery if insurance companies started to cover a portion of the price of voluntary procedures?

If the price of grapefruit rises, the substitution effect due to the price change will cause

In response to a surplus the market price of a good will fall; as the price falls, the quantity demanded will increase and quantity supplies will decrease until equilibrium is reached.

Which of the following would cause the equilibrium price of ketchup to increase and the equilibrium quantity of ketchup to decrease?

Figure 3-1 -In January, buyers of gold expect that the price of gold will rise in February. What happens in the gold market in January, holding all else constant?

The phrase "demand has increased" means that