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

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

Holding everything else constant,an increase in the price of MP3 players will result in

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

In 2004,hurricanes damaged a large portion of Florida's orange crop.As a result of this,many orange growers were not able to supply fruit to the market.At the pre-hurricane equilibrium price (i.e.,at the initial equilibrium price),we would expect to see

If an increase in income leads to a decrease in the demand for popcorn,then popcorn is

What is the difference between an "increase in supply" and an "increase in quantity supplied"?

Chips and salsa are complements.If the price of salsa decreases,the demand for chips will increase.

An article in the Wall Street Journal in early 2001 noted two developments in the market for laser eye surgery.The first development concerned side effects from the surgery,including blurred vision.The second development was that the companies renting eye-surgery machinery to doctors had reduced their charges.In the market for laser eye surgeries,these two developments

Suppose that when the price of raspberries increases,Lonnie increases his purchases of papayas.To Lonnie,

Auctions in recent years have resulted in higher prices paid for letters written by John Wilkes Booth than those written by Abraham Lincoln.What is a reason for this difference in price?

Discuss the correct and incorrect economic analysis in the following statements. "The United Auto Workers Union has successfully negotiated a 9 percent increase in wages for its workers.This increase in the wage rate causes an increase in demand for automobiles,since many consumers now have greater incomes,and also a decrease in the supply of automobiles because the cost of production has increased.These effects cancel each other out resulting in no change in equilibrium price and quantity in the automobile market."

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

Figure 3-7 -Refer to Figure 3-7.Assume that the graphs in this figure represent the demand and supply curves for Fruitopia,a soft drink.Which panel describes what happens in the market for Fruitopia when the price of Snapple,a substitute product,decreases?

Figure 3-1 -Refer to Figure 3-1.A decrease in the price of the product would be represented by a movement from

If the number of firms producing mouthwash increases and consumer preference for mouthwash increases,the equilibrium price of mouthwash will definitely increase.

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

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

In recent years the cost of producing organic produce in the U.S.has decreased largely due technological advancement.At the same time,more and more Americans prefer organic produce over conventional produce.Which of the following best explains the effect of these events in the organic produce market?

A normal good is a good for which the demanded increases as income decreases,holding everything else constant.

What is the law of supply? What does this law imply about the shape of the supply curve?