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

An article in the Wall Street Journal in early 2001 noted two developments in the market for laser eye surgery.The first development concerned side effects from the surgery,including blurred vision.The second development was that the companies renting eye-surgery machinery to doctors had reduced their charges.In the market for laser eye surgeries,these two developments

The income effect explains why there is a direct relationship between the price of a product and the quantity of the product demanded.

Select the phrase that correctly completes the following statement."A positive change in technology caused an increase in the supply of flat-screen televisions.As a result ________."

What are the five variables that will shift the demand curve?

If the number of firms producing electric cars increases and consumer preference for electric cars increases,the equilibrium quantity of electric cars will definitely increase.

Which of the following generation categories has the largest population in the United States in 2015?

The income effect of a price change refers to the impact of a change in

If a firm expects that the price of its product will be higher in the future than it is today,then

Which of the following would shift the supply curve for energy drinks to the left?

Tom Searchinger,a senior attorney at the Environmental Defense Fund,observed that generous farm subsidies have encouraged farmers to produce more corn and more wheat.How does this affect the market for fertilizer?

Figure 3-4 -Refer to Figure 3-4.If the current market price is $15,the market will achieve equilibrium by

Table 3-1 Loose Leaf Tea Priceper lb. (dollars) Sunil's Quantity Demanded (lbs) Mia's Quantity Demanded (lbs) Rest af Market Quantity Demanded (lbs) Market Quantity Demanded (lbs) \ 8 4 0 30 6 7 2 40 5 9 3 51 4 12 5 64 3 15 8 90 -Refer to Table 3-1.The table above shows the demand schedules for loose-leaf tea of two individuals (Sunil and Mia)and the rest of the market.At a price of $5,the quantity demanded in the market would be

In February,market analysts predict that the price of titanium will rise in March.What happens in the titanium market in February,holding everything else constant?

Discuss the correct and incorrect economic analysis in the following statements. "If a disease kills a large number of turkeys,the supply of turkeys will decrease.This will result in a price increase,which will then cause the supply of turkeys to increase."

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

What is the difference between a demand schedule and a demand curve?

"Because Coke and Pepsi are substitutes,a decrease in the price of Pepsi will cause the demand for Coke to decrease.This initial shift in demand for Coke results in a lower price for Coke;this lower price will cause the demand curve for Coke to shift to the left." Which of the following correctly comments on this statement?

Which of the following is evidence of a shortage of walnuts?

The phrase "demand has increased" means that

A normal good is a good for which the demanded decreases as income decreases,holding everything else constant.