1. Each of the following events would tend to increase or decrease either the demand for or the supply of electronic games and, as a result, will increase or decrease the price of these games. In the first blank, indicate the effect on demand or supply (increase, decrease); in the second blank, indicate the effect on price (increase, decrease). Assume that the market for electronic games is competitive. a)  It becomes known by consumers that there is going to be a major sale on these games one month from now. _____________________________________, _________________________________ b)  The workers in the electronic games industry receive a $3 an hour wage increase. _____________________________________, _________________________________ c)  It is announced by a respected research institution that children who play electronic games also improve their grades in school. _____________________________________, _________________________________ d)  Because of an increase in productivity, the amount of labor necessary to produce a game decrease. _____________________________________, _________________________________ e)  The consumers who play these games believe that a shortage of the games is developing in the economy. ______________________________________, _________________________________ f)  The federal government imposes a $5 tax per game on the manufacturers of electronic games. ______________________________________, _________________________________

ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
icon
Related questions
Question

1. Each of the following events would tend to increase or decrease either the demand for or the supply of electronic games and, as a result, will increase or decrease the price of these games.

In the first blank, indicate the effect on demand or supply (increase, decrease); in the second blank, indicate the effect on price (increase, decrease).

Assume that the market for electronic games is competitive.

  1. a)  It becomes known by consumers that there is going to be a major sale on these games one month from now.

    _____________________________________, _________________________________

  2. b)  The workers in the electronic games industry receive a $3 an hour wage increase. _____________________________________, _________________________________

  3. c)  It is announced by a respected research institution that children who play electronic games also improve their grades in school.

    _____________________________________, _________________________________

  4. d)  Because of an increase in productivity, the amount of labor necessary to produce a game decrease.

    _____________________________________, _________________________________

  5. e)  The consumers who play these games believe that a shortage of the games is developing in the economy.

    ______________________________________, _________________________________

  6. f)  The federal government imposes a $5 tax per game on the manufacturers of electronic games.

    ______________________________________, _________________________________

Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 2 steps

Blurred answer
Knowledge Booster
Total Cost
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.
Similar questions
Recommended textbooks for you
ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
Economics
ISBN:
9780190931919
Author:
NEWNAN
Publisher:
Oxford University Press
Principles of Economics (12th Edition)
Principles of Economics (12th Edition)
Economics
ISBN:
9780134078779
Author:
Karl E. Case, Ray C. Fair, Sharon E. Oster
Publisher:
PEARSON
Engineering Economy (17th Edition)
Engineering Economy (17th Edition)
Economics
ISBN:
9780134870069
Author:
William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
Publisher:
PEARSON
Principles of Economics (MindTap Course List)
Principles of Economics (MindTap Course List)
Economics
ISBN:
9781305585126
Author:
N. Gregory Mankiw
Publisher:
Cengage Learning
Managerial Economics: A Problem Solving Approach
Managerial Economics: A Problem Solving Approach
Economics
ISBN:
9781337106665
Author:
Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher:
Cengage Learning
Managerial Economics & Business Strategy (Mcgraw-…
Managerial Economics & Business Strategy (Mcgraw-…
Economics
ISBN:
9781259290619
Author:
Michael Baye, Jeff Prince
Publisher:
McGraw-Hill Education