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

Table 3-2 Caviar Price per oz. (dollars) Ari's Quantity Demanded (oz.) Sonia's Quantity Demanded (oz.) Rest of Market Quantity Demanded (oz.) Market Quantity Demanded (oz.) \ 75 6 0 46 65 18 6 64 55 28 14 136 45 36 24 170 35 44 36 220 -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 falls from $45 to $35,the market quantity demanded would

Figure 3-7 -Refer to Figure 3-7.Assume that the graphs in this figure represent the demand and supply curves for laptop computers.Which panel best describes what happens in this market when the price of computer hard drives falls?

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

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)?

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

Use the following demand schedule for apples to draw a graph of the demand curve.Be sure to label the demand curve and each axis,and show each point on the demand curve. Price (dollars per bushel) Quantity (thousands of bushels) 30 20 25 40 20 60 15 80 10 100

Figure 3-7 -Refer to Figure 3-7.Assume that the graphs in this figure represent the demand and supply curves for potatoes and that steak and potatoes are complements.What panel describes what happens in this market when the price of steak rises?

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

Auctions in recent years have resulted in higher prices paid for letters written by John Wilkes Booth than those written by Abraham Lincoln.Which of the following events would cause the price differences in these letters to get smaller?

If smartwatches are considered substitutes for smartphones,then the decline in the price of smartwatches would,all else equal

Figure 3-4 -Refer to Figure 3-4.If the price is $20

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

Figure 3-8 -Refer to Figure 3-8.The graph in this figure illustrates an initial competitive equilibrium in the market for motorcycles at the intersection of D1 and S1 (point A).If there is a surplus of motorcycles how will the equilibrium point change?

Figure 3-3 -Refer to Figure 3-3.The figure above shows the supply and demand curves for two markets: the market for original Michelangelo sculptures and the market for Ray Ban sunglasses.Which graph most likely represents which market?

Figure 3-5 -Refer to Figure 3-5.At a price of $0

An increase in the demand for lobster due to changes in consumer tastes,accompanied by a decrease in the supply of lobster as a result bad weather reducing the number of fishermen trapping lobster,will result in

Figure 3-4 -Refer to Figure 3-4.At a price of $15,how many units will be sold?

Figure 3-6 -Refer to Figure 3-6.The figure above represents the market for canvas tote bags.Compare the conditions in the market when the price is $50 and when the price is $35.Which of the following describes how the market differs at these prices?

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

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