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

Technological advances have resulted in lower prices for digital cameras.What is the impact of this on the market for traditional (non-digital)cameras?

If,in response to a decrease in the price of grapes,the quantity of grapes demanded increases,economists would describe this as

Suppose you pre-ordered a non-refundable movie ticket to X-Men: Days of Future Past.On the day of the movie you decide that you would rather not go to the movie.According to economists,what is the rational thing to do?

Figure 3-3 -Refer to Figure 3-3.The figure above shows the supply and demand curves for two markets: the market for original Picasso paintings and the market for designer jeans.Which graph most likely represents which market?

A sunk cost is

The observation that people tend to value something more highly when they own it than when they don't is called the

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 D₁ and S₁ (point A) If there is an increase in the wages of apple workers and an increase in the price of oranges, a substitute for apples, the equilibrium could move to which point?

If,in the market for oranges,the supply has increased then

What is the ceteris paribus condition?

Suppose that when the price of hamburgers decreases,the Landry family decreases their purchases of chicken nuggets.To the Landry family

Most film processing companies have a policy of printing every picture on a roll of film and allowing customers to request a refund for pictures that were not clearly developed.The companies do this knowing that most customers do not ask for refunds.This is an example of consumers

How does the increasing use of MP3 players affect the market for compact discs?

In a perfectly competitive market,there are ________ buyers and ________ sellers.

In response to a surplus,the market price of a good will fall; as the price falls,the quantity demanded will increase and quantity supplied will decrease until equilibrium is reached.

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

One reason university students do not study enough to get high grades is that they are unrealistic about their future behaviour.

In October,market analysts predict that the price of platinum will fall in November.What happens in the platinum market in October,holding everything else constant?

Indicate whether each of the following situations would shift the supply curve to the left,to the right,or not at all. a.An increase in the number of firms in the market b.An increase in the current price of the product c.A decrease in productivity d.An increase in the expected future price of a product e.A decrease in the price of an input

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 their initial introduction.How did this change in technology affect the market for Blu-ray players?

For each of the following pairs of products,state which are complements,which are substitutes and which are unrelated. a.Blu-ray discs and video-on-demand b.Fiat 500 and Mini Cooper S c.Toothpaste and toothbrush d.Popcorn and snowboards e.Razors and razor blades