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

Figure 3-6 -At a product's equilibrium price,

Electric car manufacturers want to sell more electric cars at a higher price. Which of the following events would have this effect?

In each of the following situations, list what will happen to the equilibrium price and the equilibrium quantity for a particular product, which is a normal good. a. The population increases and the price of inputs increase b. The price of a complement increases and technology advances c. The number of firms in the market increases and income increases d. Price is expected to increase in the future e. Consumer preference increases and the price of a substitute in production decreases

Assume that the price for swimming pool maintenance services has risen and sales of these services have fallen. One can conclude that

Suppose favorable weather resulted in a bumper crop of oranges in Florida. In the market for oranges,

If the price of refillable butane lighters was to decrease, then

Chips and salsa are complements. If the price of salsa decreases, the demand for chips will increase.

In the United States, consumption per-person of carbonated soft drinks ________ between 2005 and 2013.

Figure 3-2 -Refer to Figure 3-2. An increase in the number of firms in the market would be represented by a movement from

Table 3-3 -Refer to Table 3-3. The table above shows the demand schedules for Kona coffee of two individuals (Luke and Ravi) and the rest of the market. At a price of $6, the quantity demanded in the market would be

All else equal, the desired increase in the supply of smart phones for Google would cause the equilibrium price of the smart phones to ________ and the equilibrium quantity of the smart phones to ________.

Figure 3-4 -Refer to Figure 3-4. If the current market price is $10, the market will achieve equilibrium by

Figure 3-3 -Refer to Figure 3-3. The figure above shows the supply and demand curves for two markets: the market for original Michelangelo sculptures and the market for Ray Ban sunglasses. Which graph most likely represents which market?

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. At a price of $75, the quantity demanded in the market would be

Figure 3-8 -Refer to Figure 3-8. The graph in this figure illustrates an initial competitive equilibrium in the market for motorcycles at the intersection of D1 and S1 (point A) The equilibrium point will move from A to E.

At a product's equilibrium price,

How does the increasing use of digital cameras affect the market for traditional camera film?

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) The equilibrium point will move from A to B.

In January, buyers of gold expect that the price of gold will fall in February. What happens in the gold market in January, holding everything else constant?

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