Question 1

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 equation of demand curve is P = a - bQ, where P is price, Q is quantity demanded, a is the y-intercept and b is the slope of the curve. Substituting the given values, we get P = 60 - 8Q. Therefore, the correct answer is choice B, which matches this equation.

Question 2

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

Accepted Answer

The equilibrium price is found where the demand curve and supply curve intersect. Setting the two equations equal to each other, we get:75 - 6Q_D = 35 + 2Q_S-8Q_D = -40Q_D = 5Substituting Q_D = 5 into either the demand or supply equation, we get:P = 75 - 6(5) = $45Therefore, the equilibrium price of a knob is $45.

Question 3

"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 because a decrease in demand for Internet service does not necessarily increase the price of Internet service and an increase in the price of Internet service does not necessarily increase the supply of Internet service. The relationship between demand, price, and supply is more complex than this statement implies.

Question 4

Use the table below to answer the following questions.
Table 3.5.3
Demand and supply schedules for designer sport t-shirts at CoolU
 $$\begin{array} { c c c } 
\hline\begin{array} { c } 
\text { Price } \
\text { (dollars per t-shirt) }
\end{array} & \begin{array} { c } 
\text { Quantity Supplied } \
\text { (t-shirtsper month) }
\end{array} & \begin{array} { c } 
\text { Quantity Demanded } \
\text { (t-shirtsper month) }
\end{array} \
\hline 3 & 150 & 300 \
4 & 160 & 280 \
5 & 170 & 260 \
6 & 180 & 240 \
7 & 190 & 220 \
8 & 200 & 200 \
9 & 210 & 180 \
10 & 220 & 160 \
11 & 230 & 140 \
12 & 240 & 120\\hline
\end{array}$$
-Refer to Table 3.5.3.In a television interview,Joe Cool shows off his designer sport t-shirt,setting off a new craze that doubles business at the sportswear establishments.This would be represented as a

Accepted Answer

The answer of Use the table below to answer the...

Question 5

Use the table below to answer the following questions.
Table 3.5.3
Demand and supply schedules for designer sport t-shirts at CoolU
 $$\begin{array} { c c c } 
\hline\begin{array} { c } 
\text { Price } \
\text { (dollars per t-shirt) }
\end{array} & \begin{array} { c } 
\text { Quantity Supplied } \
\text { (t-shirtsper month) }
\end{array} & \begin{array} { c } 
\text { Quantity Demanded } \
\text { (t-shirtsper month) }
\end{array} \
\hline 3 & 150 & 300 \
4 & 160 & 280 \
5 & 170 & 260 \
6 & 180 & 240 \
7 & 190 & 220 \
8 & 200 & 200 \
9 & 210 & 180 \
10 & 220 & 160 \
11 & 230 & 140 \
12 & 240 & 120\\hline
\end{array}$$
-Refer to Table 3.5.3.A new store opens up on the edge of campus,Great Wild North Sportswear,which has the capacity to do as much business as all the existing businesses.The quantity of t-shirts supplied doubles at each price.The new equilibrium price is $________ and the new equilibrium quantity is ________ t-shirts per month.

Accepted Answer

The answer of Use the table below to answer the...

Question 6

Use the table below to answer the following questions.
Table 3.5.3
Demand and supply schedules for designer sport t-shirts at CoolU
 $$\begin{array} { c c c } 
\hline\begin{array} { c } 
\text { Price } \
\text { (dollars per t-shirt) }
\end{array} & \begin{array} { c } 
\text { Quantity Supplied } \
\text { (t-shirtsper month) }
\end{array} & \begin{array} { c } 
\text { Quantity Demanded } \
\text { (t-shirtsper month) }
\end{array} \
\hline 3 & 150 & 300 \
4 & 160 & 280 \
5 & 170 & 260 \
6 & 180 & 240 \
7 & 190 & 220 \
8 & 200 & 200 \
9 & 210 & 180 \
10 & 220 & 160 \
11 & 230 & 140 \
12 & 240 & 120\\hline
\end{array}$$
-Refer to Table 3.5.3.In a television interview,Joe Cool shows off his designer sport t-shirt,setting off a new craze that doubles business at the sportswear establishments.The quantity of t-shirts demanded doubles at each price.The new equilibrium price is $________ and the new equilibrium quantity is ________ t-shirts per month.

Accepted Answer

The answer of Use the table below to answer the...

Question 7

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
Potatoes Hamburgers Rice
before after before after before after
Region 1 100 30 50 20 3 50
Region 2 10 5 4 50 50 60
-Refer to Table 3.5.4.In Region 1,potatoes and hamburgers are

Accepted Answer

The answer of Use the table below to answer the...

Question 8

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

Accepted Answer

At market equilibrium, demand equals supply. Thus, 700 - 20Q = 300 + 20Q. Solving for Q gives 400 = 40Q, so Q = 10. Substituting Q = 10 into either the demand or supply equation gives P = 500.

Question 9

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

Accepted Answer

At equilibrium, quantity demanded equals quantity supplied.
800 - 25QS1U1B1DS1U1B0 = 500 + 25QS1U1B1SS1U1B0
300 = 50QS1U1B1S
QS1U1B1S = 6
Substituting QS1U1B1S into either the demand or supply curve:
P = 800 - 25(6) = 650
Therefore, the equilibrium quantity is 6 and the equilibrium price is 650.

Question 10

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 11

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

Accepted Answer

At market equilibrium, demand equals supply. Setting the demand equation equal to the supply equation: 700 - 10Q = 400 + 5Q. Solving for Q gives 300 = 15Q, so Q = 20. Substituting Q = 20 into either the demand or supply equation gives P = 500.

Question 12

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
Potatoes Hamburgers Rice
before after before after before after
Region 1 100 30 50 20 3 50
Region 2 10 5 4 50 50 60
-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.

Question 13

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 y-axis intercept (where P=0) is given as 40 and the slope is given as 6. Therefore, the equation of the supply curve can be written as P = 40 + 6QS, where QS is the quantity supplied. Rearranging this equation gives us QS = (P-40)/6 or Q_S = (P-40)/6. However, this equation is not one of the options given. The closest option is option B, which correctly shows the intercept as 40 and the slope as 6, therefore the correct answer is B.

Question 14

Use the table below to answer the following questions.
Table 3.5.3
Demand and supply schedules for designer sport t-shirts at CoolU
 $$\begin{array} { c c c } 
\hline\begin{array} { c } 
\text { Price } \
\text { (dollars per t-shirt) }
\end{array} & \begin{array} { c } 
\text { Quantity Supplied } \
\text { (t-shirtsper month) }
\end{array} & \begin{array} { c } 
\text { Quantity Demanded } \
\text { (t-shirtsper month) }
\end{array} \
\hline 3 & 150 & 300 \
4 & 160 & 280 \
5 & 170 & 260 \
6 & 180 & 240 \
7 & 190 & 220 \
8 & 200 & 200 \
9 & 210 & 180 \
10 & 220 & 160 \
11 & 230 & 140 \
12 & 240 & 120\\hline
\end{array}$$
-Refer to Table 3.5.3.A new store opens up on the edge of campus,Great Wild North Sportswear,which has the capacity to do as much business as all the existing businesses.The quantity of t-shirts supplied doubles at each price.In addition,in a television interview,Joe Cool shows off his designer sport t-shirt,setting off a new craze that doubles business at the local sportswear establishments.The quantity of t-shirts demanded doubles at each price.The new equilibrium price is $________ and the new equilibrium quantity is ________ t-shirts per month.

Accepted Answer

The new store doubles the supply, and the craze doubles the demand, keeping the equilibrium price the same but doubling the quantity.

Question 15

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 16

Use the table below to answer the following questions.
Table 3.5.3
Demand and supply schedules for designer sport t-shirts at CoolU
 $$\begin{array} { c c c } 
\hline\begin{array} { c } 
\text { Price } \
\text { (dollars per t-shirt) }
\end{array} & \begin{array} { c } 
\text { Quantity Supplied } \
\text { (t-shirtsper month) }
\end{array} & \begin{array} { c } 
\text { Quantity Demanded } \
\text { (t-shirtsper month) }
\end{array} \
\hline 3 & 150 & 300 \
4 & 160 & 280 \
5 & 170 & 260 \
6 & 180 & 240 \
7 & 190 & 220 \
8 & 200 & 200 \
9 & 210 & 180 \
10 & 220 & 160 \
11 & 230 & 140 \
12 & 240 & 120\\hline
\end{array}$$
-Refer to Table 3.5.3.Suppose that the price of a designer sport t-shirt is $10.The market has ________ leading to ________.

Accepted Answer

The answer of Use the table below to answer the...

Question 17

Use the table below to answer the following questions.
Table 3.5.3
Demand and supply schedules for designer sport t-shirts at CoolU
 $$\begin{array} { c c c } 
\hline\begin{array} { c } 
\text { Price } \
\text { (dollars per t-shirt) }
\end{array} & \begin{array} { c } 
\text { Quantity Supplied } \
\text { (t-shirtsper month) }
\end{array} & \begin{array} { c } 
\text { Quantity Demanded } \
\text { (t-shirtsper month) }
\end{array} \
\hline 3 & 150 & 300 \
4 & 160 & 280 \
5 & 170 & 260 \
6 & 180 & 240 \
7 & 190 & 220 \
8 & 200 & 200 \
9 & 210 & 180 \
10 & 220 & 160 \
11 & 230 & 140 \
12 & 240 & 120\\hline
\end{array}$$
-Refer to Table 3.5.3.A new store opens up on the edge of campus,Great Wild North Sportswear,which has the capacity to do as much business as all the existing businesses.The quantity of t-shirts supplied doubles at each price.This would be represented as a

Accepted Answer

The answer of Use the table below to answer the...

Question 18

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...

Quiz 3: Demand and Supply

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

The demand curve for knobs is P = 75 - 6Q_D and the supply curve for knobs is P = 35 + 2Q_S.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 demand curve is P = 700 - 20Q_D.The supply curve is P = 300 + 20Q_S.At market equilibrium,the equilibrium quantity is and the equilibrium price is .

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

The demand curve is P = 700 - 10Q_D.The supply curve is P = 400 + 5Q_S.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 ________.

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 ________.

Quiz 3: Demand and Supply

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

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?

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 supply curve is 40 and the slope is 6.The equation of the supply curve is ________.

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 demand curve for knobs is P = 75 - 6Q_D and the supply curve for knobs is P = 35 + 2Q_S.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 demand curve is P = 700 - 20Q_D.The supply curve is P = 300 + 20Q_S.At market equilibrium,the equilibrium quantity is and the equilibrium price is .

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

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