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

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

A demand curve shows the relationship between

An increase in the equilibrium price for a product will result

Table 3-2 -Refer to Table 3-2.The table above shows the demand schedules for cashews of two individuals (Jordy and Amy)and the rest of the market.At a price of $10,the quantity demanded in the market would be

Figure 3-1 -Refer to Figure 3-1.A decrease population would be represented by a movement from

Use the following supply schedule for cherries to draw a graph of the supply curve.Be sure to label the supply curve and each axis,and show each point on the supply curve.

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

Table 3-2 -Refer to Table 3-2.The table above shows the demand schedules for cashews of two individuals (Jordy and Amy)and the rest of the market.If the price of cashews falls from $4 to $2,the market quantity demanded would

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

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

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

Figure 3-4 -Refer to Figure 3-4.At a price of $20,how many units will be supplied?

Let D = demand,S = supply,P = equilibrium price,Q = equilibrium quantity.What happens in the market for solar panels if the government offers tax breaks to encourage manufacturers to produce more solar panels?

Prices of commercial airline tickets (assume that this is a normal good)have fallen in recent months.Over this same period,the price of jet fuel has risen and consumer incomes have fallen.Which of the following best explains the falling prices of airline tickets?

How does the decreasing use of DVD players affect the market for prerecorded DVDs?

At a product's equilibrium price

The substitution effect of a price change refers to

Farmers can plant either corn or soybeans in their fields.Which of the following would cause the supply of soybeans to increase?

Several studies have shown promising links between green tea consumption and cancer prevention.How does this affect the market for green tea?

Farmers can raise either goats or ostriches on their land.Which of the following would cause the supply of goats to decrease?