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?

The substitution effect explains why there is a direct relationship between the price of a product and the quantity of the product demanded.

A decrease in the price of pork will result in

Article Summary More than a million Americans are estimated to have gone to other countries in 2014 for medical procedures.Documentary filmmaker Morgan Spurlock was among those Americans who travelled abroad in 2014 to partake in what is being referred to as "medical tourism." From his own experience and those of others who had also travelled for medical procedures,Spurlock found that there can be distinct advantages to medical tourism for certain patients and procedures.Those advantages include: The level of care offered in many hospitals,with the best hospitals reportedly meeting or exceeding Western standards;Significantly lower costs,examples of which include a heart bypass operation in the United States that typically runs $88,000 can cost as little as $31,500 in Costa Rica,and hip replacement surgery that averages $33,000 domestically is only $12,400 in Thailand;The ability to combine medical procedures with vacations to amazing locations around the globe. -Refer to the Article Summary.Assume that foreign governments begin to publicize their existing medical services to American medical tourists and more Americans consider hip-replacement surgery to improve their quality of life.What will happen in the market for hip-replacement surgery as a result of these two factors?

For each of the following pairs of products,state which are complements,which are substitutes,and which are unrelated. a.Blu-ray discs and video-on-demand b.Fiat 500 and Mini Cooper S c.Toothpaste and toothbrush d.Popcorn and snowboards e.Razors and razor blades

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

Studies have shown that drinking one glass of red wine per day may help prevent heart disease.Assume this is true,and a fungal disease destroys a large portion of the grape harvest of California vineyards.In the market for red wine,these two developments would

Assume that in recent years the cost of producing microbrew beer in the U.S.has decreased largely due to technological improvements.At the same time,more and more Americans prefer microbrew beer over wine.Which of the following best explains the effect of these events in the microbrew beer market?

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

For each of the following pairs of products,state which are complements,which are substitutes,and which are unrelated. a.Digital camera and memory stick b.7Up and Mountain Dew c.Swimsuits and flip-flops d.Tylenol and cat food e.Photocopier and paper

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 United States?

For each of the following pairs of products,state which are complements,which are substitutes,and which are unrelated. a.House plants and potato chips b.Eyeglasses and contact lenses c.Motorcycles and gasoline d.Smartphone and smartphone apps e.Red wine and white wine

Use the following supply schedule for cherries to draw a graph of the supply curve.Be sure to label the supply curve and each axis,and show each point on the supply curve. Price (dollars per bushel) Quantity (thousands of bushels) 8 50 16 100 24 150 32 200 40 250

Figure 3-6 -Refer to Figure 3-6.The figure above represents the market for canvas tote bags.Assume that the price of tote bags is $15.At this price

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

If,in response to a decrease in the price of coffee,the quantity of coffee demanded increases,economists would describe this as

Figure 3-4 -Refer to Figure 3-4.If the current market price is $10,the market will achieve equilibrium by

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

Let D = demand,S = supply,P = equilibrium price,Q = equilibrium quantity.What happens in the market for solar panels if the government offers tax breaks to encourage manufacturers to produce more solar panels?

What is the difference between a supply schedule and a supply curve?