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

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

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

What would happen in the market for knee replacement surgery if insurance companies started to cover a smaller portion of the cost of the surgery?

Table 3-2 -Refer to Table 3-2. The table above shows the demand schedules for caviar of two individuals (Ari and Sonia) and the rest of the market. If the price of caviar rises from $65 to $75, the market quantity demanded would

The demand by all the consumers of a given good or service is the ________ for the good or service.

Figure 3-8 -Blu-ray players were introduced to the market in 2006, and new technology has allowed for the cost of manufacturing the players to decline significantly since the initial introduction. How did this change in technology affect the market for Blu-ray players?

If a decrease in income leads to in a decrease in the demand for ice cream, then ice cream is

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

"Because Coke and Pepsi are substitutes, a decrease in the price of Pepsi will cause the demand for Coke to decrease. This initial shift in demand for Coke results in a lower price for Coke; this lower price will cause the demand curve for Coke to shift to the left." Which of the following correctly comments on this statement?

If consumers believe the price of iPads will decrease in the future, this will cause the demand for iPads to decrease now.

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?

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

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

What would happen in the market for knee replacement surgery if insurance companies started to cover a smaller portion of the cost of the surgery, and fewer doctors decide to enter the field of joint replacement surgery?

Figure 3-6 -Refer to Figure 3-6. The figure above represents the market for coffee grinders. Assume that the market price is $21. Which of the following statements is true?

Which of the following would cause a decrease in the equilibrium price and decrease in the equilibrium quantity of papayas?

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

For each of the following pairs of products state which are complements, which are substitutes, and which are unrelated. a. House plants and potato chips b. Eyeglasses and contact lenses c. Motorcycles and gasoline d. Smartphone and smartphone apps e. Red wine and white wine

Use the following supply schedule for cherries to draw a graph of the supply curve. Be sure to label the supply curve and each axis, and show each point on the supply curve.

If the population increases and input prices increase, the equilibrium price of a product will definitely increase.