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

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

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

Figure 3-4 -Refer to Figure 3-4. At a price of $20, how many units will be supplied?

A decrease in the price of pork will result in

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

A change in which variable will change the market demand for a product?

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. A decrease in the price of a complementary good would be represented by a movement from

If the quantity demanded for a product exceeds the quantity supplied, the market price will rise until

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. If the price of Kona coffee rises from $4 to $5, the market quantity demanded would

Figure 3-2 -Refer to Figure 3-2. A technological advancement would be represented by a movement from

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

During the 1990s positive technological change in the production of chicken caused the price of chicken to fall. Holding everything else constant, how would this affect the market for pork (a substitute for chicken)?

Figure 3-4 -Refer to Figure 3-4. At a price of $25, how many units will be supplied?

Shrimp is an increasingly popular part of the American diet. Louisiana shrimpers, who represent the bulk of the U.S. industry, were almost all put out of business by Hurricane Katrina. How did this affect the equilibrium price and quantity of shrimp?

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

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)?

If pilots and flight attendants agree to wage and benefit reductions in the wake of the financial difficulties in the airline industry, what impact would this have on the supply and demand in the market for airline service, assuming no other changes take place in this market?

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

If the demand for a product decreases and the supply of the same product decreases, the equilibrium price will decrease.