EBK ECONOMICS: PRINCIPLES AND POLICY
13th Edition
ISBN: 9781305465626
Author: Blinder
Publisher: CENGAGE LEARNING - CONSIGNMENT
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Question
Chapter 4, Problem 6TY
(a)
To determine
The change in supply curve of cell phone.
(b)
To determine
The changes in the market for smart phone.
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Students have asked these similar questions
Other things equal, which of the following would NOT shift the supply curve for gasoline?
Select one:
a.
an increase in the price of gasoline.
b.
an improvement in refining techniques that allows more gasoline to be squeezed out of a barrel of crude oil
c.
a fall in the price of crude oil (from which gasoline is refined)
d.
an increase in the wages paid to people working in oil refineries.
Consider the markets for film streaming services, TV screens, and tickets at movie theaters.
a. For each pair, identify whether they are complements or substitutes:
Film streaming and TV screens
Film streaming and movie tickets
TV screens and movie tickets
b. Suppose a technological advance reduces the cost of manufacturing TV screens. Draw a diagram to show what happens in the market for TV screens.
c. Draw two more diagrams to show how the change in the market for TV screens affects the markets for film streaming and movie tickets.
In 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.
Chapter 4 Solutions
EBK ECONOMICS: PRINCIPLES AND POLICY
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- Illustrate the effect on the equilibrium price and quantity using supply and demand curves. Be sure to label everything. Use the 4 step process. a) The effect of an increase in the price of lumber on the market for newly constructed homes b) The effect of a decrease in the price of chicken on the market for beef (assume they are substitutes) c) The effect of an increase in income on the market for ramen noodles (assume they are inferior goods)arrow_forwardConsider the markets for film streaming services,TV screens,and tickets at movie theaters.a.For each pair,identify whether they are complements or substitutes:Film streaming and TV screens.Film streaming and movie ticketsTV screens and movie ticketsb.Suppose a technological advance reduces the cost of manufacturing TV screens.c. Draw two more diagram to show how the change in the market for TV screens affects the markets for film streaming and movie tickets.arrow_forwardComplete the paragraph by filling in the blanks based on what you have learned from the lesson. Choose your answer from the words below. INCREASES PRICE SCHEDULE TECHNOLOGY LESSER PREFERENCES SUBSTITUTE PRODUCT CURVE WEATHER GOVERNMENT POLICY SEASONAL PRODUCTS SURPLUS SHORTAGE I learned additional lessons in Applied Economics. This week I learned about the law of supply which states that when the increases the quantity of products that the producer is willing to sell. and the law of demand which states that the higher the the the demand. To be able to analyze the demand and supply I can use the demand and supply and the demand and supply graphical representation of the relationship of price and quantity. I also understand that aside from price, there are other factors that may affect the supply some of these are and There are also factors that may affect demand like and I can say that it is better if there is market equilibrium which means that the quantity supplied and the quantity…arrow_forward
- The graph shows the demand for and supply of potato chips. Draw a curve that shows the effect of a new dip that increases the quantity of potato chips that people want to buy by 40 million bags per week at each price. Label the curve. Draw a point at the new equilibrium price and quantity.arrow_forwardTablets and laptops are substitutes. Due to manufacturer related issues, there is a deep shortage of tablet-specific parts. What would you expect to happen to the market (prices, supply, demand, quantity sold) shortly after the parts shortage in for each of the following products: a. Tablets?b. Laptops? You can answer each point above with a labeled graph or explain in words, taking into account the differences between a change in the demand (curve) and a change in quantity demanded.arrow_forwardSuppose that the table on the right shows the quantity demanded of UGG boots at five different prices in 2014 and in 2015. Which of the following variables could cause the quantity demanded of UGG boots to change as indicated from 2014 to 2015? (Check all that apply.) A. An increase in the price of UGG boots B. A decrease in the price of a substitute good C. A decrease in the number of buyers D. The expectation that UGG boots will rise in price Price $160 170 180 190 200 Quantity Demanded 2014 5000 4500 4000 3500 3000 Quantity Demanded 2015 4000 3500 3000 2500 2000arrow_forward
- a. Do you agree with the following statements? Explain your answers. i. The price of butter rises, causing the demand for another good to fall. This implies that the goods are substitutes. ii. During the pandemic, incomes fell for many Bahamians this change would likely lead to a decrease in the prices of both normal and inferior goods. iii. If the demand and supply of lobster increases at the same time price will rise. iv. The price of milk falls. This causes an increase in the price of good cheese. Therefore, milk and cheese are complements.arrow_forwardSuppose Jermaine and Tim are the only people in the market. The curve DJ is Jermaine's demand curve and the curve DT is Tim's demand curve. Draw the market demand curve and label it. (If you plot any points to help you draw the curve, you must erase the points before submitting the Problem Set). Price (dollars per bag) 6.00 5.00- 4.00- 3.00- 2.00- 1.00 0.00+ 0 DJ 1 2 3 4 5 6 7 Quantity (bags per month) 8 Q 6.00 5.00- 4.00- 3.00- 2.00 1.00 0.00+ Price (dollars per bag) DT 0 1 2 3 4 5 6 7 8 9 10 11 12 Quantity (bags per month) 6.00 5.00 4.00- 3.00- 2.00- 1.00- 0.00+ 0 Price (dollars per bag) -~ 2 4 to 6 8 10 12 14 16 Quantity (bags per month) 18 20 Q Qarrow_forwardThe graph shows the demand for and supply of potato chips. Draw a curve that shows the effect of a new dip that increases the quantity of potato chips that people want to buy by 30 million bags per week at each price. Label the curve 1. Draw a curve that shows the effect of a virus that destroys potato crops and decreases the quantity of potato chips produced by 40 million bags a week at each price. Label the curve 2. Draw a point at the new equilibrium price and quantity following both events. How do the equilibrium price and equilibrium quantity change when the increase in demand is greater than the decrease in supply? The equilibrium price and the equilibrium quantity. OA. falls; decreases; OB. rises; decreases; OC. falls; increases; OD. rises; increases; How do the equilibrium price and equilibrium quantity change when the increase in demand is less than the decrease in supply? The equilibrium price and the equilibrium quantity 115 105- 95- 85- 75- 65- 55- Price (cents per bag) Sb…arrow_forward
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