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. ______________________________________, _________________________________
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
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.
______________________________________, _________________________________
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
