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

Which of the following statements is true?

If the price of gasoline increases,what will be the impact in the market for public transportation?

The supply curve for umbrellas

A supply curve

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

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

George Gnat subscribes to a monthly pest control service for his home.Last week the owner of the service informed George that he will have to raise his monthly service fee because of increases in the price of gasoline used by his workers on their service trips.How is the market for pest control services affected by this?

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

Suppose that when the price of hamburgers increases,the Ruiz family increases their purchases of hot dogs.To the Ruiz family,

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

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

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

What is the difference between a market equilibrium and a competitive market equilibrium?

Figure 3-8 -Refer to Figure 3-8.The graph in this figure illustrates an initial competitive equilibrium in the market for motorcycles at the intersection of D1 and S2 (point B).If there is an increase in number of companies producing motorcycles and a decrease in income (assume motorcycles are a normal good),the equilibrium could move to which point?

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

According to the Australian Wool Innovation,severe drought conditions in Australia contributed to the lowest level of wool production in 50 years.This record low production has driven up prices sharply in Australian wool markets.Meanwhile,the price of raw cotton increased significantly for the first time in many years. a.Illustrate this observation with one demand and supply graph for the market for Australian wool and another demand and supply graph for raw cotton. b.Make sure that your graphs clearly show (1)the initial equilibrium before the decrease in the supply of Australian wool and (2)the final equilibrium. c.Use arrows to indicate any shifts in the demand and supply curves for each market. d.Label your graphs fully and write an explanation of your work.

If smartwatches are considered substitutes for smartphones,the decline in the price of smartphones would,all else equal,

If pilots and flight attendants agree to wage and benefit reductions in the wake of the financial difficulties in the airline industry,what impact would this have on the supply and demand in the market for airline service,assuming no other changes take place in this market?

One would speak of a movement along a supply curve for a good,rather than a change in supply,if

Which of the following would cause the equilibrium price of apple juice to decrease and the equilibrium quantity of apple juice to increase?