econ exam 3

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

: B An "increase in demand" is represented by a rightward shift of the demand curve while an "increase in quantity demanded" is represented by a movement along a given demand curve.

What is the difference between an 'increase in supplv' and an 'increase in guantitv supplied"?

An "increase in supply" means the supply curve has shifted to the right while an "increase in quantity supplied" refers to a movement dong a given supply curve in response to an increase in price.

Let D= demand. S = supolv. P = equilibrium price. and q= equilibrium qauantitv. What happens in the market for walnuts if the Centers for DIsease control and Prevention announces that consuming a halt cup ot walnuts each week helps to lower bad levels ot cholesterol?

D increases. S no change. P and Q increase

Technological advances have resulted in lower prices for smart watches. What is the impact of this on the market for traditional watches?

The demand curve for traditional watches shifts to the left

In October. market analvsts predict that the price of platinum will fall in November. What happens in the platinum market in October. holding everything else constant?

The supply curve shifts to the right.

An increase in demand causes a change in equilibrium price; the change in price does not cause a further change in demand or supply

True

Which of the following will shift the demand curve for a good?

a decrease in the price of a complementary good

which of the following would shift the supply curve for MP3 players to the right?

a decrease in the price of an input used to produce MP3 players

If the current market price is $10. the market will achies equilibrium through

a price increase, increasing the quantity supplied and decreasing the quantity demanded.

which of the following would shift the supply curve for MP3 players to the left?

an increase in the price of an input used to produce MP3 players

If an increase in income leads to a decrease in the demand for popcorn, then popcorn is

an inferior good

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 less than the demand curve. As a result

both the equilibrium price and quantity of MP3 players will increase.

Assume that both the demand curve and the supoly curve for MP3 blavers shift to the right but the demand curve shifts more than the supply curve. As a result

both the equilibrium price and quantity of mp3 will increase

a________ is represented by a leftward shift in the demand curve while a _____ is represented by a movement along a given demand curve

decrease in demand; increase in quantity demanded

Suppose that when the price of raspberries increases, Lonnie increases his purchases of papayas. To Lonnie,

raspberries and papayas are substitutes.

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

the equilibrium price of MP3 plavers will increase; the equilibrium quantity will decrease

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

the equilibrium price of MP3 players will decrease; the equilibrium quantity will increase.

At a product's equilibrium price

the product's demand curve crosses the product's supply curve.

The law of demand implies, holding everything else constant, that as the price of bagels increases.

the quantity of bagels demanded will decrease.