Question 1

The price at which sellers are not willing to supply a good is $70 a unit. As the quantity supplied of the good increases by one unit, the minimum price at which someone is willing to sell that unit increased by $5. What is the equation of this supply curve?

Accepted Answer

The answer of The price at which sellers are not...

Question 2

The price at which sellers are not willing to supply a good is $700 per unit. If the supply curve passes through the point (3,718), what is the equation of the supply curve?

Accepted Answer

The answer of The price at which sellers are not...

Question 3

Lower labour costs

Accepted Answer

Lower labour costs will lead to a decrease in the cost of production for Tim's baked goods. This will result in an increase in the supply of Tim's baked goods, as it becomes cheaper for the business to produce more of them. The increase in supply will lead to a shift in the supply curve to the right, resulting in a lower equilibrium price. However, the equilibrium quantity will not change as the increase in supply will be offset by a decrease in demand due to the lower price.

Question 4

The demand curve is P = 700 - 10QD. The supply curve is P = 400 + 5QS. At market equilibrium, the equilibrium quantity is ________ and the equilibrium price is ________.

Accepted Answer

The answer of The demand curve is P = 700...

Question 5

Today, the price of peanuts increases. Peanut butter producers and peanut butter consumers expect that the price of peanut butter will rise in the future. In the current market for peanut butter, the equilibrium price rises and the equilibrium quantity increases. It must be the case that

Accepted Answer

The answer of Today, the price of peanuts increases. Peanut...

Question 6

The following events occur one at a time: I. The price of crude oil rises.
II. The price of a car rises.
III. All speed limits on highways are abolished.
IV. Robots cut car production costs.
The quantity of gasoline supplied

Accepted Answer

The answer of The following events occur one at a...

Question 7

The cost of producing aspirin increases at the same time as doctors discover that taking one aspirin per day reduces the risk of heart attacks. As a result, the

Accepted Answer

The answer of The cost of producing aspirin increases at...

Question 8

The demand curve is P = 800 - 25QD. The supply curve is P = 500 + 25QS. At market equilibrium, the equilibrium quantity is ________ and the equilibrium price is ________.

Accepted Answer

To find the equilibrium quantity and price, we need to set the demand equal to the supply:
800 - 25QD = 500 + 25QS
Rearranging, we get:
25QD + 25QS = 300
Dividing both sides by 25:
QD + QS = 12

We know that at equilibrium, QD must equal QS. So we can substitute Q for both QD and QS:
2Q = 12
Q = 6

Now that we know the equilibrium quantity, we can find the equilibrium price by plugging Q = 6 into either the demand or supply equation:
P = 800 - 25(6) = 650
So the equilibrium quantity is 6 and the equilibrium price is 650. Therefore, the answer is D.

Question 9

The demand curve for knobs is P = 75 - 6QD and the supply curve for knobs is P = 35 + 2QS. What is the equilibrium price of a knob?

Accepted Answer

The answer of The demand curve for knobs is P...

Question 10

"As fewer people buy computers, the demand for Internet service will decrease and the price of Internet service will increase. The rise in the price of Internet service will increase the supply of Internet service." This statement is ________ because ________.

Accepted Answer

The statement is incorrect. A decrease in demand for Internet service will not necessarily increase the price of Internet service, and an increase in the price of Internet service will not necessarily increase the supply of Internet service. These are not causally related.

Question 11

The y- axis intercept of the demand curve is 60 and the slope is - 8. The equation of the demand curve is

Accepted Answer

The general form of a linear demand equation is P = a - bQD, where P is price, QD is quantity demanded, a is the y-axis intercept, and b is the slope of the curve. Substituting the given values, we get P = 60 - 8QD as the equation of the demand curve.

Question 12

What will happen to the equilibrium price and quantity of coffee if it is discovered to help prevent colds and, at the same time, Brazil and Vietnam emerge in the global market as massive producers of coffee?

Accepted Answer

The discovery that coffee helps prevent colds increases demand, pushing both price and quantity up. Meanwhile, Brazil and Vietnam emerging as massive producers increase supply, pushing price down but quantity up. The net effect on price is uncertain because it depends on the relative magnitudes of the demand and supply shifts, but quantity will definitely increase.

Question 13

All shredded wheat producers have decided to add a new ingredient, the "crunch enhancer" to shredded wheat. Crunch enhancer keeps cereals crisper longer in milk and, as a result, consumers decide they like shredded wheat more than before. What happens to the supply and demand curves for shredded wheat now that it costs more to produce and consumers like it better?

Accepted Answer

The answer of All shredded wheat producers have decided to...

Question 14

Table 3.5.4
Quantities demanded and supplied in equilibrium
before and after a drought strikes potato farms
  
Use the table below to answer the following questions.
-Refer to Table 3.5.4. In Region 1, potatoes and hamburgers are

Accepted Answer

The answer of Table 3.5.4
Quantities demanded and supplied in equilibrium
before...

Question 15

The demand curve is P = 700 - 20QD. The supply curve is P = 300 + 20QS. At market equilibrium, the equilibrium quantity is ________ and the equilibrium price is ________.

Accepted Answer

The answer of The demand curve is P = 700...

Question 16

All grapefruit juice producers have decided to blend tangerine juice with grapefruit juice. This blend results in a higher cost of production, but studies show that consumers prefer the taste of the blend to straight grapefruit juice. What will happen to the equilibrium price and quantity of grapefruit juice?

Accepted Answer

Blending tangerine juice with grapefruit juice increases the cost of production, which would lead to an increase in price. However, consumers prefer the taste of the blend, which would lead to an increase in demand, potentially causing an increase in both price and quantity. The net effect on price and quantity is uncertain, but it is likely that the equilibrium price will rise due to the increase in production costs. The effect on equilibrium quantity would depend on the size of the increase in demand relative to the increase in production costs.

Question 17

The y- axis intercept of the supply curve is 40 and the slope is 6. The equation of the supply curve is

Accepted Answer

The answer of The y- axis intercept of the supply...

Question 18

Table 3.5.4
Quantities demanded and supplied in equilibrium
before and after a drought strikes potato farms
  
Use the table below to answer the following questions.
-In Table 3.5.4 potatoes and rice are

Accepted Answer

Potatoes and rice are typically considered substitutes because they are both staple carbohydrates. If they are substitutes in one region, it's logical to assume they maintain that relationship in another, as consumer preference for one over the other due to price or availability changes does not fundamentally alter their interchangeability as staple foods.

Quiz 3: Demand and Supply

The price at which sellers are not willing to supply a good is $70 a unit. As the quantity supplied of the good increases by one unit, the minimum price at which someone is willing to sell that unit increased by $5. What is the equation of this supply curve?

The price at which sellers are not willing to supply a good is $700 per unit. If the supply curve passes through the point (3,718) , what is the equation of the supply curve?

Lower labour costs

The demand curve is P = 700 - 10QD. The supply curve is P = 400 + 5QS. At market equilibrium, the equilibrium quantity is and the equilibrium price is .

Today, the price of peanuts increases. Peanut butter producers and peanut butter consumers expect that the price of peanut butter will rise in the future. In the current market for peanut butter, the equilibrium price rises and the equilibrium quantity increases. It must be the case that

The following events occur one at a time: I. The price of crude oil rises. II. The price of a car rises. III. All speed limits on highways are abolished. IV. Robots cut car production costs. The quantity of gasoline supplied

The cost of producing aspirin increases at the same time as doctors discover that taking one aspirin per day reduces the risk of heart attacks. As a result, the

The demand curve is P = 800 - 25QD. The supply curve is P = 500 + 25QS. At market equilibrium, the equilibrium quantity is and the equilibrium price is .

The demand curve for knobs is P = 75 - 6QD and the supply curve for knobs is P = 35 + 2QS. What is the equilibrium price of a knob?

"As fewer people buy computers, the demand for Internet service will decrease and the price of Internet service will increase. The rise in the price of Internet service will increase the supply of Internet service." This statement is because .

The y- axis intercept of the demand curve is 60 and the slope is - 8. The equation of the demand curve is

What will happen to the equilibrium price and quantity of coffee if it is discovered to help prevent colds and, at the same time, Brazil and Vietnam emerge in the global market as massive producers of coffee?

Table 3.5.4 Quantities demanded and supplied in equilibrium before and after a drought strikes potato farms Use the table below to answer the following questions. -Refer to Table 3.5.4. In Region 1, potatoes and hamburgers are

The demand curve is P = 700 - 20QD. The supply curve is P = 300 + 20QS. At market equilibrium, the equilibrium quantity is and the equilibrium price is .

The y- axis intercept of the supply curve is 40 and the slope is 6. The equation of the supply curve is

Table 3.5.4 Quantities demanded and supplied in equilibrium before and after a drought strikes potato farms Use the table below to answer the following questions. -In Table 3.5.4 potatoes and rice are