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

Technological advancements have led to lower prices and an increase in the sale of color laser printers.How does this affect the market for traditional inkjet printers?

If the United States lifts the embargo on Cuban products,what will happen in the U.S.market for Cuban cigars?

An increase in the number of firms in a market will cause the quantity of a good supplied to increase.

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

Prices of California Merlot wine (assume that this is a normal good)have risen steadily in recent years.Over this same period,prices for French oak barrels used for wine storage have dropped and consumer incomes have risen.Which of the following best explains the rising prices of California Merlots?

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

Danielle Ocean pays for monthly pool maintenance for her home swimming pool.Last week the owner of the pool service informed Danielle that he will have to raise his monthly service fee because of increases in the price of pool chemicals.How is the market for pool maintenance services affected by this?

Figure 3-7 -Refer to Figure 3-7.Assume that the graphs in this figure represent the demand and supply curves for women's clothing.Which panel best describes what happens in this market when the wages of seamstresses rise?

A decrease in the demand for soft drinks due to changes in consumer tastes,accompanied by an increase in the supply of soft drinks as a result of reductions in input prices,will result in

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.At a price of $75,the quantity demanded in the market would be

Table 3-4 Cashews Priceper lb. (dollars) Jordy's Quantity Demanded (lbs) Amy's Quantity Demanded (lbs) Rest af Market Quantity Demanded (lbs) Market Quantity Demanded (lbs) \ 10 1 1 50 8 2 3 70 6 3 5 95 4 5 9 128 2 8 14 156 -Refer to Table 3-4.The table above shows the demand schedules for cashews of two individuals (Jordy and Amy)and the rest of the market.If the price of cashews falls from $4 to $2,the market quantity demanded would

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 D2 and S1 (point C).If the price of motorcycle side cars (a complement to motorcycles)decreases,and the wages of motorcycle workers increase,how will the equilibrium point change?

If a decrease in income leads to a decrease in the demand for ice cream,then ice cream is

Figure 3-7 -Refer to Figure 3-7.Assume that the graphs in this figure represent the demand and supply curves for almonds.Which panel best describes what happens in this market when there is an increase in the productivity of almond harvesters?

If a firm has an incentive to increase supply now and decrease supply in the future,then the firm expects that the

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 price of an input b.An increase in productivity c.An increase in the price of a substitute in production d.A decrease in the expected future price of a product e.A decrease in the current price of the product

In September,buyers of silver expect that the price of silver will rise in October.What happens in the silver market in September,holding all else constant?

Explain the difference between a normal good and an inferior good.

Table 3-4 Cashews Priceper lb. (dollars) Jordy's Quantity Demanded (lbs) Amy's Quantity Demanded (lbs) Rest af Market Quantity Demanded (lbs) Market Quantity Demanded (lbs) \ 10 1 1 50 8 2 3 70 6 3 5 95 4 5 9 128 2 8 14 156 -Refer to Table 3-4.The table above shows the demand schedules for cashews of two individuals (Jordy and Amy)and the rest of the market.At a price of $6,the quantity demanded in the market would be

A decrease in the demand for incandescent light bulbs due to changes in consumer tastes,accompanied by a decrease in the supply of incandescent light bulbs as a result of government restrictions,will result in