Principles of Microeconomics
11th Edition
ISBN: 9780133024630
Author: CASE
Publisher: PEARSON
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Question
Chapter 3, Problem 14P
To determine
Two possible reasons for the rightward shift in the
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Complete the following. Note that several factors are listed in the book. For each factor, be sure to tell how it will shift the curve.
Name some factors that can cause a shift in the demand curve in markets for goods and services.
Name some factors that can cause a shift in the supply curve in markets for goods and services.
The following graph input tool shows the daily demand for hotel rooms at the Big Winner Hotel and Casino in Las Vegas, Nevada. To help the hotel management better understand the market, an economist identified three primary factors that affect the demand for rooms each night. These demand factors, along with the values corresponding to the initial demand curve, are shown in the following table and alongside the graph input tool.
Demand Factor
Initial Value
Average American household income
$40,000 per year
Roundtrip airfare from New York (JFK) to Las Vegas (LAS)
$250 per roundtrip
Room rate at the Lucky Hotel and Casino, which is near the Big Winner
$250 per night
Use the graph input tool to help you answer the following questions. You will not be graded on any changes you make to this graph.
Note: Once you enter a value in a white field, the graph and any corresponding amounts in each grey field will change accordingly.
For each of the following scenarios, begin…
The following graph input tool shows the daily demand for hotel rooms at the Big Winner Hotel and Casino in Las Vegas, Nevada. To help the hotel management better understand the market, an economist identified three primary factors that affect the demand for rooms each night. These demand factors, along with the values corresponding to the initial demand curve, are shown in the following table and alongside the graph input tool.
Demand Factor
Initial Value
Average American household income
$50,000 per year
Roundtrip airfare from San Francisco (SFO) to Las Vegas (LAS)
$250 per roundtrip
Room rate at the Lucky Hotel and Casino, which is near the Big Winner
$200 per night
Use the graph input tool to help you answer the following questions. You will not be graded on any changes you make to this graph.
Chapter 3 Solutions
Principles of Microeconomics
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Similar questions
- Next, complete the following graph 2 "not pictured", labeled Scenario 2, by shifting the supply and demand curves in the same way that you did on the Scenario 1 graph.arrow_forward24. Which of the following scenarios are examples of a demand shift? Choose all that apply. A. A local restaurant is much busier now because the local mine company has given all workers a large raise. B. People continue to buy the same amount of vegetables, as vegetables are an important part of a person's diet. C. People download more of a rock group's songs because there has been a revival in interest for rock music in the United States. D. More people buy MP3 players because they have gotten cheaper.arrow_forwardUse the graph below to answer the following question. A straight increasing line labeled S1 with two data points labeled y and x is drawn parallel to another increasing line labeled S2 (to its right). In the market for automobiles, suppose there was a technological advance in the production process for producing automobiles. Which of the following statements correctly illustrates the effect on supply? Multiple Choice The supply curve will shift from S1 to S2. The supply curve will shift from S2 to S1. There will be movement from point x to point y. There will be movement from point y to point x.arrow_forward
- In 2009, Netflix raised its prices by 10% and the number of Netflix customers fell by nearly 20% (assuming everything else was held constant) In 2019, Netflix raised its prices by 10% and the number of Netflix customers fell by only 2% (assuming everything else was held constant) 1) The price increase was the same, but Netflix lost much less customers on a percentage basis in 2019 versus 2009. Using supply and demand concepts, what could explain the difference in the decrease in number of customers on a percentage basis that Netflix lost in 2019 vs. 2009? Explain why. 2) Did Netflix come out better with the 2009 price increase or the 2019 price increase? Using concepts that you have learned about supply and demand, explain why Netflix's revenues and profits increased or decreased in 2009 and in 2019 due to the 10% price increase.arrow_forwardLook at the graph and answer the following questions? A. If the labor market shows that wages are 120,000, how many employees should the firm hire? B Explain why the curve does not show a straight line C. Discuss whether you can hire a lot more than 60 employees for a very low salary. D. List three factors that can make the demand curve shift to the rightarrow_forwardThe following graph input tool shows the daily demand for hotel rooms at the Oceans Hotel and Casino in Atlantic City, New Jersey. To help the hotel management better understand the market, an economist identified three primary factors that affect the demand for rooms each night. These demand factors, along with the values corresponding to the initial demand curve, are shown in the following table and alongside the graph input tool. Demand Factor Initial Value Average American household income $50,000 per year Roundtrip airfare from New Orleans (MSY) to Atlantic City (ACY) $200 per roundtrip Room rate at the Meadows Hotel and Casino, which is near the Oceans $200 per night Use the graph input tool to help you answer the following questions. You will not be graded on any changes you make to this graph.arrow_forward
- choose one in the brackets to fill in for the following question: If the wage rate for workers in car manufacturing rises, the (supply curve , quantity supplied ) for cars will [ increase, decrease, remain unchanged ) and the [ demand curve, quantity demanded) for cars will [ increase, remain unchanged, decrease) Consider a competitive market in equilibrium at (Q1,P1). When there is an increase in demand in this market, what exactly happens in this market? Help describe what happens by selecting the correct sequence of events from the drop-down menus below. [Advice: draw this situation in a competitive market diagram.] step 1:( creates an access demand at the original market price, this allows the market to clear at the original market price , this creates an excess supply at the original market price ) step 2: (this puts upward pressure on the price, this puts downward pressure on the price , this does not affect the price in this market ) step 3: ( there is an increase in supply, as…arrow_forwardRefer to Figure 18-6. The graph above illustrates the market for bakers who make homemade breads and breakfast pastries. If the wages paid to wedding cake bakers decrease, what happens in the market for bread bakers? Group of answer choices Demand increases from D1 to D2. Demand decreases from D2 to D1. Supply increases from S1 to S2. Supply decreases from S2 to S1.arrow_forward(Draw this out to check your work) If the supply curve shifts to the left and the demand curve shifts to the right at the SAME TIME, equilibrium price will definitely increase and equilibrium quantity will Group of answer choices definitely increase. definitely decrease. definitely stay the same. either increase, decrease, or stay the same, depending on which curve shifts the farthest.arrow_forward
- More firms find they need to hire computer programmers to manage their websites and computer systems. In the market for computer programmers in the short run, we would expect the wage for computer programmers to ___ due to a shift in _____. Group of answer choices decrease : labor demand increase : labor demand increase : labor supply decrease : labor supplyarrow_forwardWhich of the following choices would cause a leftward shift of the supply curve and a rightward shift of the demand curve? a. an increase in the price of a complement in production; an expectation by consumers of a lower price b. a decrease in the cost of an input; a decrease in the price of a complement c. an expectation by firms of a higher price; an increase in income in the case of an inferior good d. a decrease in productivity; an expectation by consumers of higher income e. an increase in taxes; a negative change in consumers tastesarrow_forward
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