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

If the Apple iPad and the Samsung Galaxy Tab are considered substitutes,then,other things equal,an increase in the price of the iPad will

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 D₁ and S₁ (point A).If there is a shortage of apples how will the equilibrium point change?

Discuss the correct and incorrect economic analysis in the following statements. "If good weather in Hawaii creates a bumper crop of pineapples,the supply of pineapples will increase.This will result in a price decrease,which will then cause the supply of pineapples to decrease."

A decrease in the price of GPS systems will result in

From a supply perspective,what impact would an increase in the price of motorcycles have on the market for motorcycles?

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

If,in response to an increase in the price of chocolate,the quantity demanded of chocolate decreases economists would describe this as

Figure 3-7 -Refer to Figure 3-7.Assume that the graphs in this figure represent the demand and supply curves for rice.What happens in this market if buyers expect the price of rice to fall?

Prices of California Merlot wine (assume that this is a normal good)have risen steadily in recent years.Over this same period,prices for French oak barrels used for wine storage have dropped and consumer incomes have risen.Which of the following best explains the rising prices of California Merlots?

If the demand for a product increases and the supply of the same product increases,the equilibrium price will increase.

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

All else equal,a shortage of display screens used in the manufacture of tablet computers would

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

In 2004,hurricanes destroyed a large portion of Florida's grapefruit crop.How did this affect the market price and market quantity of grapefruit?

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

Table 3-1 -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

The supply curve for watches

What is the difference between an "increase in demand" and an "increase in quantity demanded"?

Last year,the Pottery Palace supplied 8,000 ceramic pots at $40 each.This year,the company supplied the same quantity of ceramic pots at $55 each.Based on this evidence,The Pottery Palace has experienced

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?