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

The ________ effect refers to the change in quantity demanded for a good that results from the effect of a change in the good's price on consumer's purchasing power.

If in the market for peaches the supply curve has shifted to the left

Figure 3-5 -Refer to Figure 3-5.At a price of $20

Figure 3-4 -Refer to Figure 3-4.If the price is $15

Hurricane Katrina damaged a large portion of oil refining and pipeline capacity in the Gulf coast states.In the market for gasoline

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

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

The market for smartwatches has begun to grow,due in part to the success of the Apple Watch.Following the successful launch of the Apple Watch in 2015,companies such as Samsung,Sony,and LG have all developed products to compete with the Apple Watch.The smartwatches introduced to compete with the Apple Watch would be considered

Figure 3-6 -Refer to Figure 3-6.The figure above represents the market for canvas tote bags.Assume that the market price is $35.Which of the following statements is true?

All else equal,as the price of a product falls,the quantity supplied increases.

Which of the following statements is true?

Holding everything else constant,a decrease in the price of GPS systems will result in

Apple's decision in 2002 to focus on developing a smartphone rather than a tablet computer exemplifies the

Which of the following will not shift the demand curve for a good?

Which of the following would cause an increase in the equilibrium price and an increase in the equilibrium quantity of watermelons?

The ________ effect of a price change refers to the impact of a change in the price of a good on a consumer's purchasing power.

As the number of firms in a market decreases,the supply curve will shift to the left and the equilibrium price will rise.

An increase in the equilibrium price for a product will 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 S1 (point C).Which of the following changes would cause the equilibrium to change to point B?

Studies have shown links between calcium consumption and a reduction in osteoporosis.How does this affect the market for calcium?