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

Which of the following would cause both the equilibrium price and equilibrium quantity of potatoes (assume that potatoes are an inferior good)to decrease?

Figure 3-5 -Refer to Figure 3-5.At a price of $20,

Let D = demand,S = supply,P = equilibrium price,Q = equilibrium quantity.What happens in the market for walnuts if the Centre for Disease Control and Prevention announces that consuming half a cup of walnuts each week helps to lower bad levels of cholesterol?

What is the difference between an 'increase in demand' and an 'increase in quantity demanded'?

One possible reason as to why consumers respond to sales is that by displaying a 'high' regular price and a 'low' sale price,sales provide consumers with a reference point to interpret the prices being offered.

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.

An increase in the price of inputs will cause the supply curve for a product to shift to the right.

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

Tomas increased his consumption of potato chips when the price of pistachios increased.For Tomas,potato chips and pistachios are

An increase in the number of firms in a market will cause the quantity of a good supplied to increase.

If,in the market for peaches,the supply curve has shifted to the left

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 B) If there is a decrease in the price of fertiliser used on sugar cane and there is a decrease in tastes for sugar-sweetened soft drinks, how will the equilibrium point change?

If a demand curve shifts to the left,then

What are the five variables that will shift the demand curve?

Assume that both the demand curve and the supply curve for MP3 players shift to the right,but the demand curve shifts more than the supply curve.As a result,

Figure 3-7 -Refer to Figure 3-7.Assume that the graphs in this figure represent the demand and supply curves for bicycle helmets.Which panel best describes what happens in this market if there is a substantial increase in the price of bicycles?

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

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

When the price of a good falls,consumers buy a larger quantity because of the ________ effect and the ________ effect.

Which of the following is a common mistake made by consumers?