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

Suppose that when the price of hamburgers decreases,the Landry family decreases their purchases of chicken nuggets.To the Landry family

A decrease in the demand for eggs due to changes in consumer tastes,accompanied by a decrease in the supply of eggs as a result of an outbreak of Avian flu,will result in

Table 3-5 Price per Bushel Quantity Demanded (bushels) Quantity Supplied (bushels) \ 3 36,000 0 6 30,000 3,000 9 24,000 6,000 12 19,000 10,000 15 15,000 15,000 18 10,000 21,000 21 7,000 28,000 24 4,000 36,000 -Refer to Table 3-5.The table contains information about the corn market.Use the table to answer the following questions. a.What are the equilibrium price and quantity of corn? b.Suppose the prevailing price is $9 per bushel.Is there a shortage or a surplus in the market? c.What is the quantity of the shortage or surplus? d.How many bushels will be sold if the market price is $9 per bushel? e.If the market price is $9 per bushel,what must happen to restore equilibrium in the market? f.At what price will suppliers be able to sell 24,000 bushels of corn? g.Suppose the market price is $21 per bushel.Is there a shortage or a surplus in the market? h.What is the quantity of the shortage or surplus? i.How many bushels will be sold if the market price is $21 per bushel? j.If the market price is $21 per bushel,what must happen to restore equilibrium in the market?

Which of the following would cause the equilibrium price of white bread to decrease and the equilibrium quantity of white bread to increase?

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

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) 4 25 8 50 12 75 16 100 20 125

The popularity of digital cameras has enticed large discount stores like Wal-Mart and Costco to offer digital photo printing services.How does this affect the digital photo printing market?

The Internet has created a new category in the book selling market,namely,the "barely used" book.How does the availability of barely used books affect the market for new books?

Explain how it would be possible for the equilibrium price and equilibrium quantity to both increase in the market for motorcycles if consumer preference for motorcycles increases and the number of motorcycle manufacturers decreases.

Figure 3-2 -Refer to Figure 3-2.A decrease in the number of firms in the market would be represented by a movement from

How does the increasing use of MP3 players affect the market for compact discs?

Assume that the hourly price for the services of personal trainers has risen and sales of these services have also risen.One can conclude that

Which of the following would cause both the equilibrium price and equilibrium quantity of barley (assume that barley is an inferior good)to increase?

What is the difference between an "increase in supply" and an "increase in quantity supplied"?

Several studies have shown promising links between green tea consumption and cancer prevention.How does this affect the market for green tea?

Suppose that when the price of raspberries increases,Lonnie increases his purchases of papayas.To Lonnie