The price of sushi decreased by 10% and the quantity demanded for sushi increased by 15%. Therefore, the price elasticity of demand for sushi is: Select one: a. 0.10 b. 0.67 c. 0.15 d. 1.50

Under which circumstances does line tax burden fall entirely on consumers?

Explain why the following statement is false: In the goods market, no seller would be willing to sell for less than the equilibrium price.

Table 3.8 shows information on the demand and supply for bicycles, where the quantities of bicycles are measured in thousands. What is the quantity demanded and the quantity supplied at a price of 210? At what price is the quantity supplied equal to 48,000? Graph the demand and supply curve for bicycles. How can you determine the equilibrium price and quantity from the graph? How can you determine the equilibrium price and quantity from line table? What HIE die equilibrium price and equilibrium quantity? If the price was 120, what would the quantities demanded and supplied he? Would a shortage or surplus exist? If so, how large would the shortage or surplus he?

Name some farm that can cause a shift in the supply curve in markets for goods and services.

What is total surplus? How is it illustrated on a demand and supply diagram?

Use the four-step process to analyze the impact of the advent of the iPod (or other portable digital music players) on the equilibrium price and quantity of the Sony Wellman (or other portable audio cassette player).

Table 3.10 shows the supply and demand for movie tickets in a city. Graph demand and supply and identify the equilibrium. Then calculate in a table and graph the effect of the following changes. Three new nightclubs open. They offer decent bands and have no cover charge, but make their money by selling food and drink. As a result, demand for movie tickets falls by six units at every price. The city eliminates a tax that it placed on all local entertainment businesses. The result is that the quantity supplied of movies at any given price increases by 10%.

When the price is above the equilibrium, explain how market forces move me market price to equilibrium. Do the same when the price is below the equilibrium.

What would be the impact of imposing a price flour below the equilibrium price?