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

If,in response to an increase in the price of chocolate,the quantity demanded of chocolate decreases economists would describe this as

All else equal,a shortage of display screens used in the manufacture of tablet computers would cause the equilibrium price of the tablet computers to ________ and the equilibrium quantity of the tablet computers to ________.

Explain how it would be possible for the equilibrium price and equilibrium quantity to both increase in the market for motorcycles if consumer preference for motorcycles increases and the number of motorcycle manufacturers decreases.

In October 2005,the U.S.Fish and Wildlife Service banned the importation of beluga caviar,the most prized of caviars,from the Caspian Sea.What happened in the market for caviar in the U.S.?

An increase in the quantity of a product supplied is caused by an increase in the price of the product.

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

Figure 3-7 -Refer to Figure 3-7.Assume that the graphs in this figure represent the demand and supply curves for used clothing,an inferior good.Which panel describes what happens in this market as a result of a decrease in income?

Elvira decreased her consumption of bananas when the price of peanut butter increased.For Elvira,peanut butter and bananas are

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

Which of the following would cause the equilibrium price of white bread to decrease and the equilibrium quantity of white bread to increase?

Last year,the Pottery Palace supplied 8,000 ceramic pots at $40 each.This year,the company supplied the same quantity of ceramic pots at $55 each.Based on this evidence,The Pottery Palace has experienced

A decrease in the price of GPS systems will result in

Figure 3-1 -Refer to Figure 3-1.A decrease in taste or preference would be represented by a movement from

If a firm expects that the price of its product will be higher in the future than it is today

Positive technological change in the production of LCD televisions caused the price of LCD televisions to fall.Holding everything else constant,how would this affect the market for Blu-ray players (a complement to LCD televisions)?

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

Which of the following would cause both the equilibrium price and equilibrium quantity of cotton (assume that cotton is a normal good)to increase?

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

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 A) A positive change in the technology used to produce apples and decrease in the price of oranges, a substitute for apples. B) An increase in the wages of apple workers and a decrease in the price of oranges, a substitute for apples. C) An increase in the number of apple producers and a decrease in the number of apple trees as a result of disease. D) A decrease in the wages of apple workers and an increase in the price of oranges, a substitute for apples. E)) Which of the following changes would cause the equilibrium to change to point A?

Which of the following is the correct way to describe equilibrium in a market?