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

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

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

If a decrease in income leads to a decrease in the demand for mac and cheese,then mac and cheese is

The market for smartwatches is becoming very competitive.The increase in competition in this market is an example of how the market responds to

If,for a product,the quantity supplied exceeds the quantity demanded,the market price will fall until

Buyers rush to purchase stocks in California vineyards following a forecast of a 30 percent decline in this year's grape harvest.What happens in the California wine market as a result of this announcement?

Figure 3-6 -Refer to Figure 3-6.The figure above represents the market for coffee grinders.Assume that the price of coffee grinders is $50.At this price

Which of the following would cause the equilibrium price of apple juice to decrease and the equilibrium quantity of apple juice to increase?

In January,buyers of gold expect that the price of gold will fall in February.What happens in the gold market in January,holding everything else constant?

Last month,the Tecumseh Corporation supplied 400 units of three-ring binders at $6 per unit.This month,the company supplied the same quantity of binders at $4 per unit.Based on this evidence,Tecumseh has experienced

The law of demand implies,holding everything else constant,that as the price of yogurt

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 3-1 -Refer to Figure 3-1.An increase in the expected future price of the product would be represented by a movement from

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?

An increase in the equilibrium quantity of a product will result

Which of the following would cause an increase in the supply of peanut butter?

Draw a demand curve and label it D1.On the graph,illustrate an increase in demand and a decrease in demand,and label the curves D2 and D3,respectively.Starting on demand curve D1,explain the shift that would result from each of the following events: a.a decrease in income and the good is a normal good b.a decrease in income and the good is an inferior good c.an increase in the price of a substitute good d.an increase in the price of a complementary good e.a decrease in the taste for the good f.an increase in population g.a decrease in the expected future price of the good

If the demand curve for a product shifts to the left and the supply curve for the product shifts to the left,the equilibrium quantity will decrease.

Figure 3-1 -Refer to Figure 3-1.A decrease population would be represented by a movement from

Explain the Law of Demand.