(a)
Identify the changes in
(a)
Explanation of Solution
If the
Equilibrium price: Equilibrium price is the market price determined by the interaction between the quantity demanded and the quantity supplied.
Equilibrium quantity: Equilibrium quantity is the point where the quantity demanded is equal to the quantity supplied.
Demand: Demand refers to the total value of the goods and services that are demanded at a particular price in a given period of time.
Supply: Supply refers to the total value of the goods and services available for purchase at a particular price in a given period of time.
(b)
Identify the changes in equilibrium price and equilibrium quantity.
(b)
Explanation of Solution
If the demand falls and supply is constant, the equilibrium price and equilibrium quantity would decrease. The decrease in demand shifts the demand curve leftward, which leads to shift the equilibrium point. At the new equilibrium point, the price level and quantity demanded are lesser.
Equilibrium price: Equilibrium price is the market price determined by the interaction between the quantity demanded and the quantity supplied.
Equilibrium quantity: Equilibrium quantity is the point where the quantity demanded is equal to the quantity supplied.
Demand: Demand refers to the total value of the goods and services that are demanded at a particular price in a given period of time.
Supply: Supply refers to the total value of the goods and services that are available for purchase at a particular price in a given period of time.
(c)
Identify the changes in equilibrium price and equilibrium quantity.
(c)
Explanation of Solution
If the supply rises and demand is constant, the equilibrium price would fall and equilibrium quantity would increase. An increase in supply shifts the supply curve rightward, which leads to shift the equilibrium point. At the new aquarium point, the price is lower and quantity demanded is higher.
Equilibrium price: Equilibrium price is the market price determined by the interaction between the quantity demanded and the quantity supplied.
Equilibrium quantity: Equilibrium quantity is the point where the quantity demanded is equal to the quantity supplied.
Demand: Demand refers to the total value of the goods and services that are demanded at a particular price in a given period of time.
Supply: Supply refers to the total value of the goods and services that are available for purchase at a particular price in a given period of time.
(d)
Identify the changes in equilibrium price and equilibrium quantity.
(d)
Explanation of Solution
If the supply falls and demand is constant, the equilibrium price would rise and equilibrium quantity would fall. The fall in supply shifts the supply curve leftward, which leads to shift the equilibrium point. At the new aquarium point, the price is higher and the quantity demanded is lower.
Equilibrium price: Equilibrium price is the market price determined by the interaction between the quantity demanded and the quantity supplied.
Equilibrium quantity: Equilibrium quantity is the point where the quantity demanded is equal to the quantity supplied.
Demand: Demand refers to the total value of the goods and services that are demanded at a particular price in a given period of time.
Supply: Supply refers to the total value of the goods and services that are available for purchase at a particular price in a given period of time.
(e)
Identify the changes in equilibrium price and equilibrium quantity.
(e)
Explanation of Solution
If the demand rises by the same amount as the supply falls, the equilibrium price would increase and quantity demanded would remain the same.
Equilibrium price: Equilibrium price is the market price determined by the interaction between the quantity demanded and the quantity supplied.
Equilibrium quantity: Equilibrium quantity is the point where the quantity demanded is equal to the quantity supplied.
Demand: Demand refers to the total value of the goods and services that are demanded at a particular price in a given period of time.
Supply: Supply refers to the total value of the goods and services that are available for purchase at a particular price in a given period of time.
(f)
Identify the changes in equilibrium price and equilibrium quantity.
(f)
Explanation of Solution
If the demand falls by the same amount as supply rises, the equilibrium price would decrease and quantity demanded would remain the same.
Equilibrium price: Equilibrium price is the market price determined by the interaction between the quantity demanded and the quantity supplied.
Equilibrium quantity: Equilibrium quantity is the point where the quantity demanded is equal to the quantity supplied.
Demand: Demand refers to the total value of the goods and services that are demanded at a particular price in a given period of time.
Supply: Supply refers to the total value of the goods and services that are available for purchase at a particular price in a given period of time.
(g)
Identify the changes in equilibrium price and equilibrium quantity.
(g)
Explanation of Solution
If the demand falls less than the supply rises, the equilibrium price would decrease and equilibrium quantity would rise.
Equilibrium price: Equilibrium price is the market price determined by the interaction between the quantity demanded and the quantity supplied.
Equilibrium quantity: Equilibrium quantity is the point where the quantity demanded is equal to the quantity supplied.
Demand: Demand refers to the total value of the goods and services that are demanded at a particular price in a given period of time.
Supply: Supply refers to the total value of the goods and services that are available for purchase at a particular price in a given period of time.
(h)
Identify the changes in equilibrium price and equilibrium quantity.
(h)
Explanation of Solution
If the demand rises more than supply rises, the equilibrium price and quantity would increase.
Equilibrium price: Equilibrium price is the market price determined by the interaction between the quantity demanded and the quantity supplied.
Equilibrium quantity: Equilibrium quantity is the point where the quantity demanded is equal to the quantity supplied.
Demand: Demand refers to the total value of the goods and services that are demanded at a particular price in a given period of time.
Supply: Supply refers to the total value of the goods and services that are available for purchase at a particular price in a given period of time.
(i)
Identify the changes in equilibrium price and equilibrium quantity.
(i)
Explanation of Solution
If the demand rises less than the supply rises, the equilibrium price would fall and quantity would increase.
Equilibrium price: Equilibrium price is the market price determined by the interaction between the quantity demanded and the quantity supplied.
Equilibrium quantity: Equilibrium quantity is the point where the quantity demanded is equal to the quantity supplied.
Demand: Demand refers to the total value of the goods and services that are demanded at a particular price in a given period of time.
Supply: Supply refers to the total value of the goods and services that are available for purchase at a particular price in a given period of time.
(j)
Identify the changes in equilibrium price and equilibrium quantity.
(j)
Explanation of Solution
If the demand falls more than the supply falls, the equilibrium price and quantity would decrease.
Equilibrium price: Equilibrium price is the market price determined by the interaction between the quantity demanded and the quantity supplied.
Equilibrium quantity: Equilibrium quantity is the point where the quantity demanded is equal to the quantity supplied.
Demand: Demand refers to the total value of the goods and services that are demanded at a particular price in a given period of time.
Supply: Supply refers to the total value of the goods and services that are available for purchase at a particular price in a given period of time.
(k)
Identify the changes in equilibrium price and equilibrium quantity.
(k)
Explanation of Solution
If the demand falls less than the supply falls, the equilibrium price would increase and quantity would decrease.
Equilibrium price: Equilibrium price is the market price determined by the interaction between the quantity demanded and the quantity supplied.
Equilibrium quantity: Equilibrium quantity is the point where the quantity demanded is equal to the quantity supplied.
Demand: Demand refers to the total value of the goods and services that are demanded at a particular price in a given period of time.
Supply: Supply refers to the total value of the goods and services that are available for purchase at a particular price in a given period of time.
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Chapter 3 Solutions
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