Question 1

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

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Question 2

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?

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Question 3

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

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

Question 4

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

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

Question 5

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 6

Tim Hortons' Risks
Tim Hortons has exploded to become a dominant player among quick-serve restaurants. In 2001, it took the risk by switching to centralized production of baked goods, which lowered its labour costs and increased its sales volume.
Source: Financial Post, August 12, 2010
-Lower labour costs

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The answer of Tim Hortons' Risks
Tim Hortons has exploded to...

Question 7

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?

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

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

At equilibrium, the quantity demanded (QD) must equal the quantity supplied (QS), so:

800 - 25QD = 500 + 25QS

Solving for QD:

25QD = 300 + 25QS

QD = 12 + QS

Substituting into either the demand or supply equation:

P = 800 - 25QD = 800 - 25(12 + QS) = 500 + 25QS

Solving for QS:

525 = 50QS

QS = 10.5

Substituting back into the equation for QD:

QD = 12 + QS = 12 + 10.5 = 22.5

Therefore, the equilibrium quantity is 22.5 units and the equilibrium price is:

P = 800 - 25QD = 800 - 25(22.5) = 6,125

Rounding to one decimal place, the equilibrium price is $6.0 (choice D).

Question 9

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 10

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

Accepted Answer

Potatoes and rice are substitutes in both regions because when the price of potatoes increases due to a drought, the quantity demanded for rice increases while the quantity supplied for potatoes decreases. This indicates that consumers are switching to rice as a substitute for potatoes. Similarly, in Region 2, when the price of rice increases due to a drought, the quantity demanded for potatoes increases while the quantity supplied for rice decreases. This indicates that consumers are switching to potatoes as a substitute for rice. Therefore, potatoes and rice are substitutes in both regions.

Question 11

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 12

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

The production cost for grapefruit juice has increased due to the blending of tangerine juice, which means that the supply curve for grapefruit juice will shift to the left. This will result in a higher equilibrium price, but the effect on the equilibrium quantity is uncertain as it will depend on the magnitude of the increase in production cost and the change in consumer preference for the blend. If the increase in production cost is small compared to the increase in demand for the blend, the equilibrium quantity may increase. But if the increase in cost is large, the equilibrium quantity may decrease.

Question 13

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 demand curve equation is typically written as P = a - bQD, where P is the price, QD is the quantity demanded, a is the y-axis intercept, and b is the slope of the curve. Substituting 60 for a and -8 for b, we get P = 60 - 8QD, which is choice B.

Question 14

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 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

"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 false for two reasons. Firstly, fewer people buying computers does not necessarily mean a decrease in the demand for Internet service since people can access the Internet from other devices like smartphones and tablets. Secondly, the rise in the price of Internet service does not increase the supply of Internet service as suppliers may not be able to produce more Internet service in response to a price increase.

Question 17

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 18

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 butter...

Quiz 3: Demand and Supply

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

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

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?

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

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

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 .

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

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 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 .

"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 .

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?

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