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

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Question 131

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Indicate whether each of the following situations would shift the supply curve to the left,to the right,or not at all. a.an increase in the price of an input b.an increase in productivity c.an increase in the price of a substitute in production d.a decrease in the expected future price of a product e.a decrease in the current price of the product

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a.shift to the left ...

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Question 132

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Figure 3.13 Alt text for Figure 3.13a: In figure 3.13a,a graph of intersecting demand and supply curves represents a rising supply of bicycle helmets. Long description for Figure 3.13a: The x-axis is labelled,Quantity and the y-axis is labelled,as Price.Curve D1 is a straight line which slopes down from the top left corner to the bottom right corner.Curve S1 is a straight line which slopes up from the bottom left to the top right.The point of intersection is at the midpoints of both lines.Curve S2 is a straight line,parallel to curve S1,but plotted to the right.A right pointing arrow indicates the change from S1 to S2. Alt text for Figure 3.13b: In figure 3.13b,a graph of intersecting demand and supply curves represents a falling supply of bicycle helmets. Long description for Figure 3.13b: The x-axis is labelled,Quantity and the y-axis is labelled,as Price.Curve D1 is a straight line which slopes down from the top left corner to the bottom right corner.Curve S1 is a straight line which slopes up from the bottom left to the top right.The point of intersection is at the midpoints of both lines.Curve S2 is a straight line,parallel to curve S1,but plotted to the left.A left pointing arrow indicates the change from S1 to S2. Alt text for Figure 3.13c: In figure 3.13c,a graph of intersecting demand and supply curves represents a rising demand for bicycle helmets. Long description for Figure 3.13c: The x-axis is labelled,Quantity and the y-axis is labelled,as Price.Curve D1 is a straight line which slopes down from the top left corner to the bottom right corner.Curve S1 is a straight line which slopes up from the bottom left to the top right.The point of intersection is at the midpoints of both lines.Curve D2 is a straight line,parallel to curve D1,but plotted to the right.A right pointing arrow indicates the change from D1 to D2. Alt text for Figure 3.13d: In figure 3.13d,a graph of intersecting demand and supply curves represents a falling demand for bicycle helmets. Long description for Figure 3.13d: The x-axis is labelled,Quantity and the y-axis is labelled,as Price.Curve D1 is a straight line which slopes down from the top left corner to the bottom right corner.Curve S1 is a straight line which slopes up from the bottom left to the top right.The point of intersection is at the midpoints of both lines.Curve D2 is a straight line,parallel to curve D1,but plotted to the left.A left pointing arrow indicates the change from D1 to D2. -Refer to Figure 3.13.Assume that the graphs in this figure represent the demand and supply curves for almonds.Which panel best describes what happens in this market when there is an increase in the productivity of almond harvesters?

A) Panel (a)
B) Panel (b)
C) Panel (c)
D) Panel (d)

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Question 133

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The ________ effect of a price change refers to the impact a change in the price of a good has on a consumer's purchasing power.

What would happen in the market for laser eye surgery if provincial health plans started to cover a portion of the price of voluntary procedures?

Holding everything else constant,an increase in the price of MP3 players will result in

As the number of firms in a market increases,the supply curve will shift to the left and the equilibrium price will rise.

Suppose that when the price of hamburgers increases,the Ruiz family buys more hot dogs.To the Ruiz family,

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

________ means the supply curve has shifted to the right,while ________ refers to a movement along a given supply curve in response to an increase in price.

Factory incentives on cell phones have encouraged consumers to upgrade their phones.How does this affect the market for bluetooth headsets?

If guarana (a key ingredient in many energy drinks) becomes less expensive,we would expect

Figure 3.4 Alt text for Figure 3.4: In figure 3.4,a graph of the effect of technological advancement on supply curve. Long description for Figure 3.4: The x-axis is labelled,Quantity,and the y-axis is labelled,Price.Curve Supply,S1,is a straight line which slopes up from the bottom left corner to the top right corner.2 points,A and B,are marked in the middle of curve S1.Curve S2 follows the same slope as curve S1,but is plotted to the right.A right pointing arrow indicates the change from curve S1 to curve S2. -Refer to Figure 3.4.An increase in the expected future price of the product would be represented by a movement from

Figure 3.6 Alt text for Figure 3.6: In figure 3.6,a graph of intersecting supply and demand curves illustrates shortage and surplus in a market,along with its equilibrium. Long description for Figure 3.6: The x-axis is labelled,Quantity,with the values 0,200,400,500,600,700 and 800 marked.The y-axis is labelled,Price,with the values 0,10.00,15.00,20.00 and 25.00 dollars marked.Curve Supply S is a straight line which slopes up from the bottom left corner to the top right corner.4 points are plotted along the curve; (200,10) ,(400,15) ,(600,20) ,and (800,25) .Demand curve D is a straight line which slopes down from the top left corner to the bottom right corner.Curve D intersects the S curve at (600,20) ,and passes through another point,(800,10) .All plotted points are connected to the corresponding values on the x and y-axis with dotted lines. -Refer to Figure 3.6.If the price is $10,

The more substitutes there are for a good

Studies have shown that drinking one glass of red wine per day may help prevent heart disease.Assume this is true.Suppose that a fungal disease destroys a large portion of the grape harvest of B.C.vineyards.In the market for red wine,these two developments would

Figure 3.9 Alt text for Figure 3.9a: In figure 3.9a,a graph plotting intersecting supply and demand curves represents one of the two markets for original Michelangelo sculptures and Ray Ban sunglasses. Long description for Figure 3.9a: The x-axis is labelled,Quantity,and the y-axis is labelled,Price.Curve Supply is a straight line which slopes up from the bottom left corner to the top right corner.Curve Demand is a straight line which slopes down from the top left corner to the bottom right corner.The 2 curves intersect at their respective midpoints. Alt text for Figure 3.9b: In figure 3.9b,a graph plotting intersecting supply and demand curves represents one of the two markets for original Michelangelo sculptures and Ray Ban sunglasses. Long description for Figure 3.9b: The x-axis is labelled,Quantity,and the y-axis is labelled,Price.Curve Demand is a straight line which slopes down from the top left corner to the bottom right corner.Curve Supply is a straight vertical line which begins from the midpoint of the x axis.The 2 curves intersect at their respective midpoints. -Refer to Figure 3.9.The figure above shows the supply and demand curves for two markets: the market for original Michelangelo sculptures and the market for Ray Ban sunglasses.Which graph most likely represents which market?

All else equal,a ________ of orange juice used in breakfast drinks would shift the ________ curve for breakfast drinks to the left.

Figure 3.15 Alt text for Figure 3.15a: In figure 3.15a,a graph of intersecting demand and supply curves represents a rising supply of Blu-ray disc players. Long description for Figure 3.15a: The x-axis is labelled,Quantity and the y-axis is labelled,as Price.Curve D1 is a straight line which slopes down from the top left corner to the bottom right corner.Curve S1 is a straight line which slopes up from the bottom left to the top right.The point of intersection is at the midpoints of both lines.Curve S2 is a straight line,parallel to curve S1,but plotted to the right.A right pointing arrow indicates the change from S1 to S2. Alt text for Figure 3.15b: In figure 3.15b,a graph of intersecting demand and supply curves represents a falling supply of Blu-ray players. Long description for Figure 3.15b: The x-axis is labelled,Quantity and the y-axis is labelled,as Price.Curve D1 is a straight line which slopes down from the top left corner to the bottom right corner.Curve S1 is a straight line which slopes up from the bottom left to the top right.The point of intersection is at the midpoints of both lines.Curve S2 is a straight line,parallel to curve S1,but plotted to the left.A left pointing arrow indicates the change from S1 to S2. Alt text for Figure 3.15c: In figure 3.15c,a graph of intersecting demand and supply curves represents a rising demand for Blu-ray players. Long description for Figure 3.15c: The x-axis is labelled,Quantity and the y-axis is labelled,as Price.Curve D1 is a straight line which slopes down from the top left corner to the bottom right corner.Curve S1 is a straight line which slopes up from the bottom left to the top right.The point of intersection is at the midpoints of both lines.Curve D2 is a straight line,parallel to curve D1,but plotted to the right.A right pointing arrow indicates the change from D1 to D2. Alt text for Figure 3.15d: In figure 3.15d,a graph of intersecting demand and supply curves represents a falling demand for Blu-ray disc players. Long description for Figure 3.15d: The x-axis is labelled,Quantity and the y-axis is labelled,as Price.Curve D1 is a straight line which slopes down from the top left corner to the bottom right corner.Curve S1 is a straight line which slopes up from the bottom left to the top right.The point of intersection is at the midpoints of both lines.Curve D2 is a straight line,parallel to curve D1,but plotted to the left.A left pointing arrow indicates the change from D1 to D2. -Refer to Figure 3.15.Assume that the graphs in this figure represent the demand and supply curves for frozen yogurt.Which panel describes what happens in the market for frozen yogurt when the price of ice cream,a substitute product,increases?

Select the phrase that correctly completes the following statement."A decrease in the number of manufacturers caused a decrease in the supply of sailboats.As a result,________."

Assume there is a shortage in the market for smart phones.Which of the following statements correctly describes this situation?