A. The market for food available at the 100 canteen Case 1: students are becoming health conscious. 1 Case 2: students have classes from morning to evening with only 15 min break between classes. 1 B. The market for micro-economics textbook Case 1: Ms Sara makes it mandatory for all her students to have the textbook in class. 1 Case 2: The bookstore at 100 finds technology to lower his printing cost. 1

A. The market for food available at the 100 canteen Case 1: students are becoming health conscious. 1 Case 2: students have classes from morning to evening with only 15 min break between classes. 1 B. The market for micro-economics textbook Case 1: Ms Sara makes it mandatory for all her students to have the textbook in class. 1 Case 2: The bookstore at 100 finds technology to lower his printing cost. 1

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter3: Demand And Supply

Section: Chapter Questions

Problem 1SCQ: Review Figure 3.4. Suppose the price of gasoline is 1.60 per gallon. Is the quantity demanded higher...

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1. Show the market for potatoes on a graph and show what will happen if there is a drought in Idaho (where a lot of potatoes are grown) b. On another graph, show what will happen in the market for potatoes if there is a drought in China (where, I presume, a lot of rice is grown).
Why do the prices of new houses in US go so high? Explain with help of supply and demand graph What are the factors that decrease supply of houses? Draw Supply and demand graph and show what happens to the prices and quantity of houses if the prices of raw materials increase? 3. What are your suggestions to the home builders?
Show in a diagram the effect on the demand curve, the supply curve, the equilibriumprice, and the equilibrium quantity of each of the following scenarios. a. The market for gasolinei. Scenario 1: Electric cars have increased in popularity. ii. Scenario 2: The price of sports utility vehicles rises. b. The market for the cardigansi. Scenario 1: New knitting machines are invented. ii. Scenario 2: A caterpillar infestation destroys most of the cotton crop inBarbados c. The market for shrimpi. Scenario 1: More people become health conscious and realize the highcholesterol content of seafood. ii. Scenario 2: The price of fishing bait has decreased
The market for pizza has the following demand andsupply schedules:Price Quantity Demanded Quantity Supplied$4 135 pizzas 26 pizzas5 104 536 81 817 68 988 53 1109 39 121a. Graph the demand and supply curves. What arethe equilibrium price and quantity in this market?b. If the actual price in this market were above theequilibrium price, what would drive the markettoward the equilibrium?c. If the actual price in this market were below theequilibrium price, what would drive the markettoward the equilibrium?
Review Figure 3.4. Suppose the price of gasoline is 1.60 per gallon. Is the quantity demanded higher or lower than at the equilibrium price of 1.40 per gallon? What about the quantity supplied? Is there a shortage or a surplus in the market? If so, how much? Figure 3.4 Demand and Supply of Gasoline
c. Consider the demand for wheat illustrate the following scenario: A gluten free (wheat free) diet has become an increasingly popular fad diet. More people, now than ever, are eating a wheat - free diet. d. Consider the supply of cotton illustrate the following scenario: Government regulations cause the production of cotton to become more expensive per unit. Can you draw the graphs
1. Consider each scenario independently. In each of the following cases, provide an explanation and draw a graph to show:– (a) What will happen in the market for wine if the price of cheese increases (wine and cheeseare complements)?(b) What will happen in the market for brewed coffee if the price of coffee beans decreases?(c) What will happen in the market for lobster if the government reduces the income tax andlobsters are a normal good?(d) What will happen in the market for tomatoes if a new study is released that shows tomatoescontain antioxidants (may help prevent cancer)?(e) What will happen in the market for corn if a new crop rotation technique is discovered thatallows corn to be grown more easily and the price of green beans, a substitute, decreases?(f ) What will happen in the market for gasoline if the price of oil increases and there is a vastincrease in the population (e.g., another baby boomer generation)?(g) A tax on gun buyers.(h) A binding price floor on guns.
Illustrate the market for peanut butter when the scientists discovered that peanut butter is a good source of protein and vitamin B-6peanut.
Suppose that we are in a small, local economy that produces three goods. They are: (i) Food, (ii)Gas, and (iii) Housing. The prices for reach of these goods from 2019-2022 are:Good 2019 Price 2019 Quantity 2020 Price 2020 QuantityFood 10 12 14 15Gas 2 2 1.50 1.50Housing 2,000 2,500 2,200 1,800Good 2021 Price 2021 Quantity 2022 Price 2022 QuantityFood 12 15 15 16Gas 3 2 4 2.50Housing 2,300 2,200 2,400 2,3001. Calculate the Nominal GDP for this economy for 2019, 2020, 2021, and 2022. 2. Calculate Real GDP for this economy for 2019, 2020, 2021, and 2022, using the year 2019as the base year. 3. Calculate Real GDP for this economy for 2019, 2020, 2021, and 2022, using the year 2020as the base year. 4. Calculate the Real GDP Deflators for 2021 and 2022 using the Nominal GDPs youcalculated in Q1 and the Real GDPs you calculated in Q3.5. What is the annual inflation rate for 2022 according to the Real GDP Deflators youcalculated in Q4? Now suppose that the Local Government is interested in…
5. What marks the key difference between economic systems 9 A) The way they manage the factors of production B) The way they transport goods within their borders 10 .11 C) The way rules and regulations are legislated D) The way workers are relocated to different regions 6. A new feature on the latest iPhone has made it wildly popular. Which action should .12 iPhone take to maximize profits 13 A) Increase the supply of the smart phone. B) Decrease the supply of the smart phone. 14 C) Reduce the price of the smart phone. D) Maintain the current supply until demand falls.
Ernie owns a water pump. Because pumping large amounts of water is harder than pumping small amounts, the cost of producing a bottle of water rises as he pumps more. Here is the cost he incurs to produce each bottle of water: Bottle of water Cost Cost of 1st bottle $1 Cost of 2nd bottle $3 Cost of 3rd bottle $5 Cost of 4th bottle $7 1.From this information, derive Ernie’s supply schedule. 2.Graph his supply curve for bottled water. 3.If the price of a bottle of water is $4, how many bottles does Ernie produce and sell? How much producer surplus does Ernie get from these sales? Graph his supply curve for bottled water. 4.If the price rises to $6, how does quantity supplied change? How does Ernie’s producer surplus change? Show these changes in your graph.
(A) Given the following data on individual supply and demand, calculate the market supply and demand. (B) what is the equilibrium price? (C) supposed the current price is $4, at this price, how much of a shortage or surplus exists in gallons?