Principles of Microeconomics, California Edition
2nd Edition
ISBN: 9780393622102
Author: Dirk Mateer, Lee Coppock
Publisher: NORTON
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Question
Chapter 3, Problem 3SP
(a):
To determine
Impact of increased
(b):
To determine
Impact of increased output of tomatoes on the quantity supplied.
(c):
To determine
Impact of increased consumption of organic food and decreased cancer.
(d):
To determine
Impact of increased wages of low-skilled workers.
(e):
To determine
Impact of increased price of movie tickets.
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For each of the following scenarios, determine if there is an increase or a decrease in supply for the good in italics.
a. The price of silver increases.
b. Growers of tomatoes experience an unusually good growing season.
c. New medical evidence reports that consumption of organic products reduces the incidence of cancer.
d. The wages of low-skilled workers, a resources used to help produce, clothing, increase.
e. The price of movie tickets, a substitute for Netflix video rentals, goes up.
Consider the market for cars. Which determinant of demand is affected by each of the following events?
a. Environmentalists launch a successful One Family, One Car campaign: (Click to select)
b. A baby boom occurred 16 years ago: (Click to select)
c. Layoffs increase as the economy sheds millions of jobs: (Click to select)
d. An oil shortage causes the price of gasoline to soar: (Click to select)
Number of buyers
Prices of related goods
Incomes
Consumer preferences
Expectations
e. The government offers tax rebates in return for the purchase of commuter rail tickets: (Click to select) ✓
f. The government announces a massive plan to bail out the auto industry and subsidize production costs (Click to select)
For each of the following scenarios, determine if there is an increase or a demand for the good in italics.
a. The price of oranges increases.
b. The price of production tires increases.
c. Samantha Brown, who is crazy about air travel, gets fired from her job.
d. A local community has an unusually wet spring and a subsequent problem with mosquitoes, which can be deterred with citronella.
e. Many motorcycle enthusiasts enjoy riding without helmets ( in states where this is not prohibited by law). The price of new motorcycle la rises.
Chapter 3 Solutions
Principles of Microeconomics, California Edition
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Similar questions
- Consider the market for cars. Which determinant of demand is affected by each of the following events? a. Environmentalists launch a successful One Family, One Car campaign: (Click to select) b. A baby boom occurred 16 years ago: (Click to select) c. Layoffs increase as the economy sheds millions of jobs: (Click to select) d. An oil shortage causes the price of gasoline to soar: (Click to select) Prices of related goods Consumer preferences Number of buyers Expectations Incomes e. The government offers tax rebates in return for the purchase of commuter rail tickets: (Click to select) f. The government announces a massive plan to bail out the auto industry and subsidize production costs (Click to select)arrow_forwardHow are quantity supplied and quantity demanded affected by changes in prices? Give an example of how these quantities might change if the price decreases.arrow_forwardWhich of the following demonstrates the law of demand? a. When car production technology improved, car producers increased their supply of cars b. When ketchup prices rose, buyers decreased their quantity demanded of ketchup c. When consumers expected sweater prices to rise in the near future, they decreased their current demand of sweaters d. When the price of leather belts rose, sellers increase their quantity supplied of leather beltsarrow_forward
- Examine the following variables that could affect the price of oil: Choose any two of the above variables, and describe how your selections would affect oil prices based on the supply and demand analysis.a. Tax credits were offered for expenditures on home insulation.b. The Alaskan pipeline was completed.c. A supposed ceiling on the price of oil was removed.d. A new, very large deposit of oil was discovered.e. Buyers in large numbers all of the sudden started driving large sport utility vehicles. f. The use of nuclear power suddenly decreased.arrow_forwardFill in the missing words in the sentence below. 1. The ... explains the relationship between the price of a good or services and the quantity demanded. 2. If we demand something (in the economic sense), it means you intend to buy it and that you have the ... to do so. 3. ..... is simply a state at which market supply and demand balance each other and as a results, price becomes stable.arrow_forwardMovie tickets and popcorn are complements because they are often enjoyed together. When the price of movie tickets rises, what happens to the supply, demand, quantity supplied, quantity demanded and the price of in the market for popcorn?arrow_forward
- In an analysis of the market for paint, an economist discovers the facts listed below. State whether each of these changes will affect supply or demand, and in what direction. a. There have recently been some important cost-saving inventions in the technology for making paint. b. Paint is lasting longer, so that property owners need not repaint as often. c. Because of severe hailstorms, many people need to repaint now. d. The hailstorms damaged several factories that make paint, forcing them to close down for several monthsarrow_forwardProvide a plausible explanation, using a demand-supply graph, for each of the following outcomes: 1. The price and quantity in the market for Pepsi rises. 2. The price of Pepsi rises but the quantity falls.arrow_forwardThe following questions refer to the Planet Money podcast ”Kid Rock vs The Scalpers”. a. What is the product and who are the market participants?b. Kid Rock seems to feel very strongly about the price of the tickets offered in his concerts. How are the prices related to supply and demand? Are the prices at an equilibrium?c. Why was one of the solutions proposed by Kid Rock increasing the number of shows? Draw a graph explaining your answer.arrow_forward
- Demand for cookies is of the following form: P=20-4QD, where QD is millions of cookies demanded per year and P is price in US dollars. Supply of cookies of the following form: P=6+Qs, where QS is millions of cookies supplied per year and P is price in US dollars. a. What is the equilibrium quantity of cookies traded? Solve the equation, showing your work. b. Graph the supply and demand curves, marking their intersection. Be sure to label intercepts, equilibrium, etc. c. The government imposes a tax of $2 per cookie on producers of cookies. What is the new equilibrium quantity of cookies traded? Solve the equation, showing your work. d. In a graph, show how the supply curve has shifted. What price do consumers now pay? After paying the tax, how much to producers receive.arrow_forwardExplain how each of the following events changes the demand for or supply of jeans. A. People's incomes increase. B. A new technology becomes available that reduces the time it takes to manufacture a pair of jeans. C. The price of the cloth (denim) used to make jeans falls. D. Jeans come back into fashion. E. The price of a pair of jeans falls. F. The wage rate paid to garment workers rises. G. Many jeans producers go out of business. H. The price of a denim skirt halves. A. Event G decreases supply and event H increases demand. B. Event B decreases supply and event G increases demand. O C. Event C increases demand and event D increases supply. D. Event E increases demand and event F decreases supply. OE. Event A increases demand and event B increases supply.arrow_forwardIn the following scenarios, explain if demand would be affected or supply. Which curve(s) shift(s) (if any) and in which direction? Explain the change(s) in the equilibrium price and quantity. Graph you answer as well. a. In the market for laptops, the technology improves while all other factors remain constant. b. In the market for tablet computers, more suppliers enter the market and the price of laptops, a substitute good, increases, while all other factors remain constant. c. what happens in laptops market if both “a” and “b” happens at the same time.arrow_forward
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