a) At a price of $0.75 per bag, the quantity demanded by the market is [Select] ✓units of potato chips. b) Suppose that the price of potato chips is initially $0.75 and increases to $1.25. There is [Select] by the market that is equal to [Select] units of potato chips. c) Suppose that Pete decides to go on a diet and will no longer purchases potato chips at any price. In addition, after Pete has left the market, suppose that we observe that the quantity of potato chips demanded by the market is equal to 14 units. We can therefore infer that the market price is [Select]

a) At a price of $0.75 per bag, the quantity demanded by the market is [Select] ✓units of potato chips. b) Suppose that the price of potato chips is initially $0.75 and increases to $1.25. There is [Select] by the market that is equal to [Select] units of potato chips. c) Suppose that Pete decides to go on a diet and will no longer purchases potato chips at any price. In addition, after Pete has left the market, suppose that we observe that the quantity of potato chips demanded by the market is equal to 14 units. We can therefore infer that the market price is [Select]

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Concept explainers

Equilibrium Price and Quantity

Equilibrium refers to a state of balance that comes about because there is equality in all forces.

Question

There are three consumers in the market for potato chips; Don, Peggy, and Pete. The following table
displays each consumers' demand schedule for potato chips. For each blank space, type in the
correct answer (write your answer as a number).
Price per bag ($)
.25
.50
.75
1.00
1.25
1.50
Don's demand
7
6
5
4
3
2
Peggy's demand
10
8
6
4
2
0
Pete's demand
6
5
4
3
2
1
a) At a price of $0.75 per bag, the quantity demanded by the market is
[Select]
units of potato chips.
b) Suppose that the price of potato chips is initially $0.75 and increases to $1.25. There is
[Select]
by the market that is equal to [Select]
units
of potato chips.
c) Suppose that Pete decides to go on a diet and will no longer purchases potato chips at any price.
In addition, after Pete has left the market, suppose that we observe that the quantity of potato chips
demanded by the market is equal to 14 units. We can therefore infer that the market price is
[Select]

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