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

Which of the following would cause a decrease in the supply of milk?

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 rises from $65 to $75,the market quantity demanded would

If the price of grapefruit rises,the substitution effect due to the price change will cause

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

If the price of gasoline decreases,what will be the impact in the market for public transportation?

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

The market for smart phones has grown rapidly over the past few years,due in part to the overwhelming success of the Apple iPhone.Following the successful launch of the iPhone in 2007,companies such as Samsung,HTC,and LG have all introduced products to compete with the iPhone.The smart phones introduced to compete with the iPhone would be considered

One would speak of a change in the quantity of a good supplied,rather than a change in supply,if

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

Ranchers can raise either cattle or sheep on their land.Which of the following would cause the supply of sheep to increase?

All else equal,the decrease in consumer preference predicted by Apple for its iPhone 5 would be represented by a

An increase in input costs in the production of electric automobiles caused the price of electric automobiles to rise.Holding everything else constant,how would this affect the market for gasoline-powered automobiles (a substitute for electric automobiles)?

Cigars are becoming increasingly popular in the United States,and a growing number of cigar manufacturers in the Caribbean and Central America have begun producing and exporting cigars to the U.S.market.How has this affected the equilibrium price and quantity of cigars?

Holding everything else constant,a decrease in the price of bicycles will result in

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

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

If the United States placed an embargo on Swedish products,what would happen in the U.S.market for Swedish furniture?

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

Figure 3-2 -Refer to Figure 3-2.An increase in price of inputs would be represented by a movement from

A change in which variable will change the market demand for a product?