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

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 falls from $45 to $35, the market quantity demanded would

A decrease in the number of firms in a market will cause supply to increase.

Let D = demand, S = supply, P = equilibrium price, Q = equilibrium quantity. What happens in the market for solar panels if the government offers tax breaks to encourage manufacturers to produce more solar panels?

The law of demand implies, holding everything else constant, that as the price of gelato

Figure 3-1 -Refer to Figure 3-1. If the product represented is a normal good, an increase in income would be represented by a movement from

Figure 3-2 -Refer to Figure 3-2. A decrease in the price of the product would be represented by a movement from

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 D2 and S1 (point

Figure 3-8 -Refer to Figure 3-8. The graph in this figure illustrates an initial competitive equilibrium in the market for apples at the intersection of D2 and S2 (point

Prices of smartphones (assume that this is a normal good) have fallen in recent years. Over this same period, the price of the components used to produce smartphones has also fallen and consumer incomes have risen. Which of the following best explains the falling prices of smartphones?

If an increase in income leads to in an increase in the demand for peanut butter, then peanut butter is

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

Figure 3-4 -Refer to Figure 3-4. If the price is $15,

Table 3-4 -Refer to Table 3-4. The table above shows the demand schedules for cashews of two individuals (Jordy and Amy) and the rest of the market. At a price of $6, 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 sugar at the intersection of D1 and S2 (point

Figure 3-7 -Refer to Figure 3-7. Assume that the graphs in this figure represent the demand and supply curves for potatoes and that steak and potatoes are complements. Which panel describes what happens in this market when the price of steak rises?

Figure 3-7 -Refer to Figure 3-7. Assume that the graphs in this figure represent the demand and supply curves for laptop computers. Which panel best describes what happens in this market when the price of computer hard drives falls?

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

Which of the following will shift the demand curve for a good?

An increase in the equilibrium quantity of a product will result

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