Refer to the demand and supply schedule shown in the table below.Please provide explanation to each question. Price ($) Quantity demanded (slices) Quantity supplied (slices) 0.00 350 0 0.50 300 100 1.00 250 150 1.50 200 200 2.00 150 250 2.50 100 300 3.00 50 350 3.50 0 400 If pizza parlours charge $3.50 per slice, there will be an excess: demand of 400 units. supply of 400 units. demand of 200 units. supply of 200 units. If pizza parlours charge $1.00 per slice, there will be an excess: supply of 100 units. demand of 150 units. demand of 100 units. supply of 150 units. The equilibrium price is $ per slice, and the equilibrium quantity is slices of pizza.
Refer to thedemand and supply schedule shown in the table below.Please provide explanation to each question.
|
Price ($) |
Quantity demanded (slices) |
Quantity supplied (slices) |
|
0.00 |
350 |
0 |
|
0.50 |
300 |
100 |
|
1.00 |
250 |
150 |
|
1.50 |
200 |
200 |
|
2.00 |
150 |
250 |
|
2.50 |
100 |
300 |
|
3.00 |
50 |
350 |
|
3.50 |
0 |
400 |
- If pizza parlours charge $3.50 per slice, there will be an excess:
demand of 400 units. supply of 400 units. demand of 200 units. supply of 200 units.
- If pizza parlours charge $1.00 per slice, there will be an excess:
supply of 100 units. demand of 150 units. demand of 100 units. supply of 150 units.
- The
equilibrium price is $ per slice, and the equilibrium quantity is
slices of pizza.
References
Worksheet Learning Objective:
03-06 Explain how
In each of the following examples, name the factor that affects current demand and describe its impact on your demand for a new cell phone.Please provide explanation to each question.
- You hear a rumor that a new and improved model of the phone you want is coming out next
consumer preferences expectations
price of a related good income
Will the demand increase, decrease or remain unchanged? Why?
- Your work gives you a pay raise that increases your monthly earnings by $500.
consumer preferences income
expectations
price of a related good
Will the demand increase, dec. rease or remain unchanged? Why?
- A cellular network announces a holiday sale on a text messaging package that includes the purchase of a new phone.
expectations income
price of a related good consumer preferences
Will the demand increase, decrease or remain unchanged? Why?
- A friend tells you how great his new cell phone is and suggests that you get one, too.
income expectations
price of a related good consumer preferences
Will the demand increase, decrease or remain unchanged? Why?
References
Multiple Choice Learning Objective:
03-02 Draw a demand curve and describe the external factors that determine demand.
The graph below shows supply and demand in the market for automobiles.
Price ($)
P1
Q1
Quantity
For each of the following events, determine the new market outcome and indicate where the new equilibrium point will be.
Price ($)
P1
Q1
Quantity
|
Event |
New equilibrium point |
||
|
Environmentalists launch a successful "One-Family–One-Car" campaign. |
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A steel tariff increases the price of steel. |
|
|
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A baby boom occurred 16 years ago. |
|
|
|
|
An oil shortage causes the price of gasoline to soar. |
|
|
|
|
Improvements in robotics increase efficiency and reduce costs. |
|
|
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|
The government offers a tax rebate for the purchase of commuter rail tickets. |
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References
Multiple Choice Learning Objective: 03-07
Evaluate the effect of changes in supply and demand on the equilibrium price and quantity.
:If the price elasticity of demand for used cars priced between $4,000 and $6,000 is -1.4 (using the mid-point method), what will be the percentage change in the quantity demanded when the price of a used car falls from $6,000 to $4,000?
Instructions: Round your answer to the nearest whole number.
percent
References
Numeric Response
Learning Objective: 04-01 Calculate price elasticity of demand using the mid-point method.
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