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

A firm has an incentive to decrease supply now and increase supply in the future if it expects that

Suppose that when the price of pickles decreases,Teddy increases his purchase of ketchup.To Teddy

When the price of a good falls,consumers buy a larger quantity because of the ________ effect and the ________ effect.

Select the phrase that correctly completes the following statement."An increase in input prices caused a decrease in the supply of baseballs.As a result ________."

Figure 3-8 -Refer to Figure 3-8.The graph in this figure illustrates an initial competitive equilibrium in the market for apples at the intersection of D2 and S2 (point

If the price of train tickets decreases,what will be the impact in the market for bus travel?

Let D = demand,S = supply,P = equilibrium price,Q = equilibrium quantity.What happens in the market for sushi if the Surgeon General announces that a majority of the raw fish that is imported to make sushi contains high levels of toxic mercury?

Ranchers can raise either cattle or sheep on their land.Which of the following would cause the supply of sheep to increase?

If consumers believe the price of tablet computers will increase in the future,this will cause the demand for tablet computers to decrease now.

Let D= demand,S = supply,P = equilibrium price,and Q= equilibrium quantity.What happens in the market for tropical hardwood trees if the governments restrict the amount of forest lands that can be logged?

If the United States placed an embargo on Swedish products,what would happen in the U.S.market for Swedish furniture?

Nearly a quarter of China's 1.3 billion people are under the age of 15.How will this affect high school enrollment over the next fifteen years? The labor market over the next fifteen years?

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

If the population increases and input prices decrease,the equilibrium quantity of a product will definitely increase.

In response to a shortage the market price of a good will rise;as the price rises,the demand will decrease and supply will increase until equilibrium is reached.

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

Suppose favorable weather resulted in a bumper crop of oranges in Florida.In the market for oranges

If the price of prime rib falls,the income effect due to the price change will cause

Studies have shown that smoking cigarettes can cause heart disease.Assume this is true,and favorable weather has increased the tobacco harvest in North Carolina.In the market for cigarettes,these two developments would

Figure 3-1 -Refer to Figure 3-1.If the product represented is an inferior good,an increase in income would be represented by a movement from