Podcast
Questions and Answers
A change in __________ will cause a movement along a demand curve, which is called a change in __________.
A change in __________ will cause a movement along a demand curve, which is called a change in __________.
price; quantity demanded
A change in which of the following will NOT shift the demand curve for iPhones?
A change in which of the following will NOT shift the demand curve for iPhones?
Which of the following will NOT shift the supply curve for iPhones?
Which of the following will NOT shift the supply curve for iPhones?
Which of the following may lead to a rise in the equilibrium price of iPhones and a fall in the equilibrium quantity of iPhones sold?
Which of the following may lead to a rise in the equilibrium price of iPhones and a fall in the equilibrium quantity of iPhones sold?
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As the game day approaches, unsold Super Bowl football tickets will likely:
As the game day approaches, unsold Super Bowl football tickets will likely:
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Your friend tells you that 'The Law of Demand does not work ALL the time.' You should tell your friend that they are:
Your friend tells you that 'The Law of Demand does not work ALL the time.' You should tell your friend that they are:
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Which of the below will NOT shift the demand curve for hot dogs?
Which of the below will NOT shift the demand curve for hot dogs?
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You get laid off from your job and because of this, you buy fewer video games. What type of good are video games for you?
You get laid off from your job and because of this, you buy fewer video games. What type of good are video games for you?
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Holding all else constant, what happens when the price for ski-lift tickets rises?
Holding all else constant, what happens when the price for ski-lift tickets rises?
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A shoe manufacturer expects prices to rise for shoes next month. How is the shoe manufacturer going to respond to higher prices in the future?
A shoe manufacturer expects prices to rise for shoes next month. How is the shoe manufacturer going to respond to higher prices in the future?
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Suppose professors at the University of Alberta begin providing good grades to students who buy them roses. This will likely cause the price of roses to ___________ and the quantity bought and sold for roses to ___________.
Suppose professors at the University of Alberta begin providing good grades to students who buy them roses. This will likely cause the price of roses to ___________ and the quantity bought and sold for roses to ___________.
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Suppose two events happen at the same time: The Chicago Cubs win the MLB Championship and the team management increases the salaries of all the Chicago Cubs players. What would we expect the price of next season Cubs' tickets to ____________ and the number of tickets purchased to ____________?
Suppose two events happen at the same time: The Chicago Cubs win the MLB Championship and the team management increases the salaries of all the Chicago Cubs players. What would we expect the price of next season Cubs' tickets to ____________ and the number of tickets purchased to ____________?
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Assume that marijuana and alcohol are substitutes. If the costs of producing alcohol rise then the price of alcohol would ___________ and the price of marijuana ___________.
Assume that marijuana and alcohol are substitutes. If the costs of producing alcohol rise then the price of alcohol would ___________ and the price of marijuana ___________.
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Which of the below would likely cause the equilibrium price of peanut butter to rise and the equilibrium quantity of peanut butter to fall?
Which of the below would likely cause the equilibrium price of peanut butter to rise and the equilibrium quantity of peanut butter to fall?
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Study Notes
Demand Changes
- A change in price leads to a movement along a demand curve, termed as a change in quantity demanded.
- Demand curve shifts can occur due to factors like consumer preferences, incomes, and the number of buyers, but not price changes of the product itself.
Supply Changes
- The supply curve remains unchanged unless influenced by factors such as production costs or technology.
- An increase in the current price of the product does not shift the supply curve.
Equilibrium Price and Quantity
- A rise in component prices (e.g., processor price for iPhones) typically results in higher equilibrium prices but lower equilibrium quantity sold.
- Other factors influencing equilibrium include the prices of substitute goods and consumer income.
Ticket Pricing Dynamics
- In a market with unsold tickets, prices may fall as demand diminishes close to the event.
- High resale values indicate high demand, but prices can also adjust downward.
Law of Demand Exceptions
- The Law of Demand states as price increases, quantity demanded typically decreases; however, luxury goods can exhibit different behaviors, such as increased demand with higher prices, called superior goods.
Goods Classification
- Video games become a normal good when demand decreases due to reduced income.
- Substitutes and complements play crucial roles in defining consumer behavior related to changes in price.
Market Reactions to Future Expectations
- Anticipation of rising prices leads suppliers to reduce current supply to maximize future profits.
Interconnected Goods
- If one good's price rises (e.g., alcohol), demand for its substitute (e.g., marijuana) will likely increase.
Peanut Butter Market Dynamics
- Rising input costs for peanut butter (like peanuts) lead to higher equilibrium prices, but a fall in equilibrium quantity.
- Changes in related goods' prices (substitutes or complements) also affect the equilibrium of the primary product.
Studying That Suits You
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Description
Test your understanding of demand curves and factors influencing them with these flashcard questions from Chapter 4. This quiz covers the shift in demand and movements along the curve, helping reinforce key economic concepts.
