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

In each of the following situations,list what will happen to the equilibrium price and the equilibrium quantity for a particular product,which is an inferior good. a.The population decreases and productivity increases b.Income increases and the price of inputs increase c.The number of firms in the market decreases and income decreases d.Consumer preference decreases and the price of a complement increases e.The price of a substitute in consumption increases and the price of a substitute in production increases

All else equal,an increase in the price of complementary products for the Apple Watch,such as Sensoria's wearable technology,would

Would a change in the price of in-line skates cause a change in the supply of in-line skates? Why or why not?

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

By drawing a demand curve with price on the vertical axis and quantity on the horizontal axis,economists assume that the most important determinant of the demand for a good is

A positive technological change will cause the quantity of a good supplied to increase.

An increase in the price of pineapples will result in

Assume that the demand curve for MP3 players shifts to the right and the supply curve for MP3 players shift to the left,but the supply curve shifts less than the demand curve.As a result

In each of the following situations,list what will happen to the equilibrium price and the equilibrium quantity for a particular product,which is a normal good. a.The population increases and the price of inputs increase. b.The price of a complement increases and technology advances. c.The number of firms in the market increases and income increases. d.Price is expected to increase in the future. e.Consumer preference increases and the price of a substitute in production decreases.

Which of the following would shift the supply curve for MP3 players to the right?

If the price of automobiles was to increase,then

In recent years the cost of producing wines in the U.S.has increased largely due to rising rents for vineyards.At the same time,more and more Americans prefer wine over beer.Which of the following best explains the effect of these events in the wine market?

Electric car manufacturers want to sell more electric cars at a higher price.Which of the following events would have this effect?

Quantity supplied refers to the amount of a good or service that a firm is willing and able to supply at a given price.

________ means the supply curve has shifted to the right,while ________ refers to a movement along a given supply curve in response to an increase in price.

Shrimp is an increasingly popular part of the American diet.Louisiana shrimpers who represent the bulk of the U.S.industry were almost all put out of business by Hurricane Katrina.How did this affect the equilibrium price and quantity of shrimp?

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

If the demand curve for a product shifts to the right and the supply curve for the product shifts to the left,equilibrium price and equilibrium quantity will both increase.

If in the market for bananas the supply curve has shifted to the right,then

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