FiltersDone

Question type

Essay

Multiple Choice

Short Answer

True False

Matching

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

Show Answer

Share

---

All types

Filters

Study Flashcards

Question 231

Multiple Choice

Review LaterAdd Note

Review Later

Which of the following would shift the supply curve for smartphones to the right?

A) an increase in the price of a substitute in production
B) an increase in consumer income (assuming that all smartphones are normal goods)
C) a decrease in the number of firms that produce smartphones
D) a decrease in the price of an input used to produce smartphones

Correct Answer

verified

Show Answer

Question 232

Multiple Choice

Review LaterAdd Note

Review Later

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

A) an decrease in demand.
B) a decrease in quantity demanded.
C) a change in consumer income.
D) a decrease in consumers' taste for pineapples.

Correct Answer

verified

Show Answer

Question 233

Multiple Choice

Review LaterAdd Note

Assume that the demand curve for MP3 players shifts to the right and the supply curve for MP3 players shift to the left,but the supply curve shifts more than the demand curve.As a result

Figure 3-5 -Refer to Figure 3-5.At a price of $15,the quantity sold

In each of the following situations,list what will happen to the equilibrium price and the equilibrium quantity for a particular product,which is an inferior good. a.The population increases and productivity increases. b.Income increases and the price of inputs decrease. c.The number of firms in the market decreases and income increases. d.Consumer preference increases and the price of a complement decreases. e.The price of a substitute in consumption decreases and the price of a substitute in production decreases.

Suppose a positive technological change in the production of disease-resistant corn caused the price of corn to fall.Holding everything else constant,how would this affect the market for wheat (a substitute for corn) ?

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

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?

Select the phrase that correctly completes the following statement."A decrease in the expected future price caused an increase in the supply of smartphones.As a result

What are the two effects that explain the law of demand? Briefly explain each effect.

Use the following demand schedule for cherries to draw a graph of the demand curve.Be sure to label the demand curve and each axis,and show each point on the demand curve. $\begin{array} { | c | c | } \hline \begin{array} { c } \text { Price } \\\text { (dollars per } \\\text { bushel) }\end{array} & \begin{array} { c } \text { Quantity } \\\text { (thousands of } \\\text { bushels) }\end{array} \\\hline 60 & 40 \\\hline 50 & 80 \\\hline 40 & 120 \\\hline 30 & 160 \\\hline 20 & 200 \\\hline\end{array}$

Peanut butter and jelly are complements.If the price of peanut butter increases,the demand for jelly will increase.

Table 3-4 $\begin{array} { | c | c | c | c | c | } \hline \begin{array} { c } \text { Cashews } \\\text { Priceper lb. } \\\text { (dollars) }\end{array} & \begin{array} { c } \text { Jordy's } \\\text { Quantity } \\\text { Demanded } \\\text { (lbs) }\end{array} & \begin{array} { c } \text { Amy's } \\\text { Quantity } \\\text { Demanded } \\\text { (lbs) }\end{array} & \begin{array} { c } \text { Rest af } \\\text { Market } \\\text { Quantity } \\\text { Demanded } \\\text { (lbs) }\end{array} & \begin{array} { c } \text { Market } \\\text { Quantity } \\\text { Demanded } \\\text { (lbs) }\end{array} \\\hline \$ 10 & 1 & 1 & 50 & \\\hline 8 & 2 & 3 & 70 & \\\hline 6 & 3 & 5 & 95 & \\\hline 4 & 5 & 9 & 128 & \\\hline 2 & 8 & 14 & 156 & \\\hline\end{array}$ -Refer to Table 3-4.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

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

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

What is the difference between a "change in demand" and a "change in quantity demanded"?

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

The income effect of a price change refers to the change in the quantity demanded of a good that results from a change in purchasing power as a result of the price change.

A change in all of the following variables will change the market demand for a product except

Let D= demand,S = supply,P = equilibrium price,and Q= equilibrium quantity.What happens in the market for walnuts if the Centers for Disease Control and Prevention announces that consuming a half cup of walnuts each week helps to lower levels of bad cholesterol?