Question 1

You are studying the market for a particular brand of perfume. You notice that a couple of changes are happening in the market at the same time. The flower that creates the perfume scent has been affected by a disease. In addition, consumers begin to worry about the safety of the ingredients that are used in the perfume. What do you expect will happen to the equilibrium price and the equilibrium quantity? Explain your answer.

Accepted Answer

The answer of You are studying the market for a...

Question 2

You are the market analyst for a major clothing company that sells high-end designer clothing. The company has a production factory in a different country where the costs of labor are low. Thereafter, the company imports the clothing to the United States. You notice that a couple of changes are happening in the market at the same time. Rising unemployment in the economy leads consumer demand for luxury goods to fall. Simultaneously, a news exposé highlights the poor working conditions in the factory where the clothes are produced. These events lead to a consumer backlash against your company. What do you expect will happen to the equilibrium price and the equilibrium quantity? Explain your answer.

Accepted Answer

The answer of You are the market analyst for a...

Question 3

An aircraft manufacturer is experiencing problems with one of its aircrafts and, this aircraft is subsequently grounded by the Federal Aviation Administration (FAA). What do you expect will happen to the price of last-minute airline tickets? Explain your answer.

Accepted Answer

The answer of An aircraft manufacturer is experiencing problems with...

Question 4

A market is described by these two equations: Q_d = 120 - 2P and Q_s = 20 + 2P. Using this information, answer the following questions. (i) Calculate the equilibrium price. (ii) Calculate the equilibrium quantity.

Accepted Answer

The answer of A market is described by these two...

Question 5

A market is described by these two equations: Q_d = 75 - 5P and Q_s = 5P. Using this information, answer the following questions. (i) Calculate the equilibrium price. (ii) Calculate the equilibrium quantity.

Accepted Answer

The answer of A market is described by these two...

Question 6

A market is described by these two equations: Q_d = 1,200 - 4P and Q_s = -200 + P. Using this information, answer the following questions. (i) Calculate the equilibrium price. (ii) Calculate the equilibrium quantity.

Accepted Answer

The answer of A market is described by these two...

Question 7

A market is described by these two equations: Q_d = 90 - 3P, and Q_s = 10 + P. Using this information, answer the following questions. (i) Calculate the equilibrium price. (ii) Calculate the equilibrium quantity.

Accepted Answer

The answer of A market is described by these two...

Question 8

The production costs of laptop computers have decreased, and consumers are now demanding more laptops. What are the possible outcomes for the equilibrium price and the equilibrium quantity of laptop computers? Draw graphs to illustrate your answer.

Accepted Answer

The answer of The production costs of laptop computers have...

Question 9

More steak is being produced, but a larger percentage of consumers are becoming vegetarians. What are the possible outcomes for the equilibrium price and the equilibrium quantity in the market for steak? Draw graphs to illustrate your answer.

Accepted Answer

The answer of More steak is being produced, but a...

Question 10

Suppose that half of the existing airline companies shut down and more consumers are opting for land transportation instead of air transportation. What are the possible outcomes for the equilibrium price and the equilibrium quantity in the market for airlines tickets? Draw graphs to illustrate your answer.

Accepted Answer

The answer of Suppose that half of the existing airline...

Question 11

Wage disagreements cause workers in automobile factories to stop working at a time of the year when consumers desire to buy more vehicles to take road trips during the summer. What are the possible outcomes for the equilibrium price and the equilibrium quantity in the market for automobiles? Draw graphs to illustrate your answer.

Accepted Answer

The answer of Wage disagreements cause workers in automobile factories...

Question 12

There is an increased demand for online courses and an increased supply of professors teaching online courses. What are the possible outcomes for the equilibrium price and the equilibrium quantity of online courses? Draw graphs to illustrate your answer.

Accepted Answer

The answer of There is an increased demand for online...

Question 13

The following data shows the monthly demand and supply of wild-caught fish from the seafood market.
(i) What is the equilibrium price per pound of wild-caught fish?
(ii) What is the equilibrium quantity of wild-caught fish?
(iii) At the price of $5.99 per pound, is there a shortage or a surplus of wild-caught fish, and what is the amount of the shortage or surplus?
(iv) At the price of $11.99 per pound, is there a shortage or a surplus of wild-caught fish, and what is the amount of the shortage or surplus?
 $$\begin{array} { | l | l | l | } 
\hline \begin{array} { l } 
\text { Price per Pound } \
\text { of Wild-Caught } \
\text { Fish }
\end{array} & \begin{array} { l } 
\text { Quantity } \
\text { Demanded } \
\text { (pounds) }
\end{array} & \begin{array} { l } 
\text { Quantity } \
\text { Supplied } \
\text { (pounds) }
\end{array} \
\hline \$ 5.99 & 1,550 & 550 \
\hline \$ 6.99 & 1,450 & 700 \
\hline \$ 7.99 & 1,350 & 850 \
\hline \$ 8.99 & 1,250 & 1,000 \
\hline \$ 9.99 & 1,150 & 1,150 \
\hline \$ 10.99 & 1,050 & 1,300 \
\hline \$ 11.99 & 950 & 1,450 \
\hline \$ 12.99 & 850 & 1,600 \
\hline
\end{array}$$

Accepted Answer

The answer of The following data shows the monthly demand...

Question 14

The following data shows the weekly demand and supply of strawberries at the local grocery store.
(i) What is the equilibrium price per pound of strawberries?
(ii) What is the equilibrium quantity of strawberries?
(iii) At the price of $2.49 per pound, is there a shortage or a surplus of strawberries, and what is the amount of the shortage or surplus?
(iv) At the price of $4.99 per pound, is there a shortage or a surplus of strawberries, and what is the amount of the shortage or surplus?
 $$\begin{array} { | l | l | l | } 
\hline \begin{array} { l } 
\text { Price per Pound } \
\text { of Strawberries }
\end{array} & \begin{array} { l } 
\text { Quantity } \
\text { Demanded } \
\text { (pounds) }
\end{array} & \begin{array} { l } 
\text { Quantity } \
\text { Supplied } \
\text { (pounds) }
\end{array} \
\hline \$ 2.49 & 700 & 650 \
\hline \$ 2.99 & 670 & 670 \
\hline \$ 3.49 & 640 & 690 \
\hline \$ 3.99 & 610 & 710 \
\hline \$ 4.49 & 580 & 730 \
\hline \$ 4.99 & 550 & 750 \
\hline
\end{array}$$

Accepted Answer

The answer of The following data shows the weekly demand...

Question 15

The following data shows the yearly demand and supply of staterooms on board a cruise ship.
(i) At what price does the cruise ship experience a shortage of 300 rooms?
(ii) At what price does the cruise ship experience a surplus of 300 rooms?
 $$\begin{array} { | l | l | l | } 
\hline \begin{array} { l } 
\text { Price per } \
\text { Stateroom of } \
\text { Cruise Ship }
\end{array} & \begin{array} { l } 
\text { Quantity } \
\text { Demanded } \
\text { (pounds) }
\end{array} & \begin{array} { l } 
\text { Quantity } \
\text { Supplied } \
\text { (pounds) }
\end{array} \
\hline \$ 599 & 1,800 & 1,200 \
\hline \$ 699 & 1,500 & 1,200 \
\hline \$ 799 & 1,200 & 1,200 \
\hline \$ 899 & 900 & 1,200 \
\hline \$ 999 & 600 & 1,200 \
\hline
\end{array}$$

Accepted Answer

The answer of The following data shows the yearly demand...

Question 16

Canada removes an import tax on certain types of steel. What effect does this have on the steel market in Canada? What happens to the equilibrium price of steel in Canada?

Accepted Answer

The answer of Canada removes an import tax on certain...

Question 17

(Figure: Demand and Supply of Sugar) Use Figure: Demand and Supply of Sugar. A factor that may have shifted the supply from S1 to S2 is:

Accepted Answer

Better technology in the production of sugar would increase the efficiency of producers and therefore increase their supply, shifting the supply curve from S1 to S2.

Question 18

(Figure: Demand and Supply of Sugar) Use Figure: Demand and Supply of Sugar. Given the equilibrium after a change in supply from S1 to S2:

Accepted Answer

Since the new supply curve (S2) intersects the demand curve at a lower price than the old equilibrium price of $25, there will be pressure for the price to fall in order to reach the new equilibrium. Therefore, option A is the best choice. The new price and quantity cannot be determined without additional information.

Question 19

(Figure: Demand and Supply of Sugar) Use Figure: Demand and Supply of Sugar. The initial equilibrium price and quantity (at the intersection of S₁ and D) of sugar are:

Accepted Answer

The answer of (Figure: Demand and Supply of Sugar) Use...

Question 20

(Figure: Demand and Supply of Sugar) Use Figure: Demand and Supply of Sugar. When the supply curve shifts from S1 to S2, the new intersection of supply and demand indicates an equilibrium price of _____ and an equilibrium quantity of 4,000. This supply shift could have resulted from _____.

Accepted Answer

When the supply curve shifts from S1 to S2, the equilibrium price increases from $10 to $15, and the equilibrium quantity remains at 4,000. This indicates that there has been an improvement in sugar refining technology, which has lowered the cost of producing sugar and shifted the supply curve to the right from S1 to S2. Choice A is incorrect because an increase in wages would increase the cost of producing sugar and shift the supply curve to the left, resulting in a higher equilibrium price and lower equilibrium quantity. Choice C is incorrect because an increase in the number of buyers would affect the demand curve, not the supply curve. Choice D is incorrect because an increase in sugar prices would not cause the supply curve to shift, but would result in a movement along the supply curve to a higher equilibrium price and quantity.

Quiz 4: Equilibrium: Where Supply Meets Demand

An aircraft manufacturer is experiencing problems with one of its aircrafts and, this aircraft is subsequently grounded by the Federal Aviation Administration (FAA). What do you expect will happen to the price of last-minute airline tickets? Explain your answer.

A market is described by these two equations: Q_d = 120 - 2P and Q_s = 20 + 2P. Using this information, answer the following questions. (i) Calculate the equilibrium price. (ii) Calculate the equilibrium quantity.

A market is described by these two equations: Q_d = 75 - 5P and Q_s = 5P. Using this information, answer the following questions. (i) Calculate the equilibrium price. (ii) Calculate the equilibrium quantity.

A market is described by these two equations: Q_d = 1,200 - 4P and Q_s = -200 + P. Using this information, answer the following questions. (i) Calculate the equilibrium price. (ii) Calculate the equilibrium quantity.

A market is described by these two equations: Q_d = 90 - 3P, and Q_s = 10 + P. Using this information, answer the following questions. (i) Calculate the equilibrium price. (ii) Calculate the equilibrium quantity.

The production costs of laptop computers have decreased, and consumers are now demanding more laptops. What are the possible outcomes for the equilibrium price and the equilibrium quantity of laptop computers? Draw graphs to illustrate your answer.

More steak is being produced, but a larger percentage of consumers are becoming vegetarians. What are the possible outcomes for the equilibrium price and the equilibrium quantity in the market for steak? Draw graphs to illustrate your answer.

There is an increased demand for online courses and an increased supply of professors teaching online courses. What are the possible outcomes for the equilibrium price and the equilibrium quantity of online courses? Draw graphs to illustrate your answer.

Canada removes an import tax on certain types of steel. What effect does this have on the steel market in Canada? What happens to the equilibrium price of steel in Canada?

(Figure: Demand and Supply of Sugar) Use Figure: Demand and Supply of Sugar. A factor that may have shifted the supply from S1 to S2 is:

(Figure: Demand and Supply of Sugar) Use Figure: Demand and Supply of Sugar. Given the equilibrium after a change in supply from S1 to S2:

(Figure: Demand and Supply of Sugar) Use Figure: Demand and Supply of Sugar. The initial equilibrium price and quantity (at the intersection of S₁ and D) of sugar are:

(Figure: Demand and Supply of Sugar) Use Figure: Demand and Supply of Sugar. When the supply curve shifts from S1 to S2, the new intersection of supply and demand indicates an equilibrium price of _ and an equilibrium quantity of 4,000. This supply shift could have resulted from _.

Quiz 4: Equilibrium: Where Supply Meets Demand

An aircraft manufacturer is experiencing problems with one of its aircrafts and, this aircraft is subsequently grounded by the Federal Aviation Administration (FAA). What do you expect will happen to the price of last-minute airline tickets? Explain your answer.

A market is described by these two equations: Qd = 120 - 2P and Qs = 20 + 2P. Using this information, answer the following questions. (i) Calculate the equilibrium price. (ii) Calculate the equilibrium quantity.

A market is described by these two equations: Qd = 75 - 5P and Qs = 5P. Using this information, answer the following questions. (i) Calculate the equilibrium price. (ii) Calculate the equilibrium quantity.

A market is described by these two equations: Qd = 1,200 - 4P and Qs = -200 + P. Using this information, answer the following questions. (i) Calculate the equilibrium price. (ii) Calculate the equilibrium quantity.

A market is described by these two equations: Qd = 90 - 3P, and Qs = 10 + P. Using this information, answer the following questions. (i) Calculate the equilibrium price. (ii) Calculate the equilibrium quantity.

The production costs of laptop computers have decreased, and consumers are now demanding more laptops. What are the possible outcomes for the equilibrium price and the equilibrium quantity of laptop computers? Draw graphs to illustrate your answer.

More steak is being produced, but a larger percentage of consumers are becoming vegetarians. What are the possible outcomes for the equilibrium price and the equilibrium quantity in the market for steak? Draw graphs to illustrate your answer.

There is an increased demand for online courses and an increased supply of professors teaching online courses. What are the possible outcomes for the equilibrium price and the equilibrium quantity of online courses? Draw graphs to illustrate your answer.

Canada removes an import tax on certain types of steel. What effect does this have on the steel market in Canada? What happens to the equilibrium price of steel in Canada?

(Figure: Demand and Supply of Sugar) Use Figure: Demand and Supply of Sugar. A factor that may have shifted the supply from S1 to S2 is:

(Figure: Demand and Supply of Sugar) Use Figure: Demand and Supply of Sugar. Given the equilibrium after a change in supply from S1 to S2:

(Figure: Demand and Supply of Sugar) Use Figure: Demand and Supply of Sugar. The initial equilibrium price and quantity (at the intersection of S1 and D) of sugar are:

(Figure: Demand and Supply of Sugar) Use Figure: Demand and Supply of Sugar. When the supply curve shifts from S1 to S2, the new intersection of supply and demand indicates an equilibrium price of _____ and an equilibrium quantity of 4,000. This supply shift could have resulted from _____.

A market is described by these two equations: Q_d = 120 - 2P and Q_s = 20 + 2P. Using this information, answer the following questions. (i) Calculate the equilibrium price. (ii) Calculate the equilibrium quantity.

A market is described by these two equations: Q_d = 75 - 5P and Q_s = 5P. Using this information, answer the following questions. (i) Calculate the equilibrium price. (ii) Calculate the equilibrium quantity.

A market is described by these two equations: Q_d = 1,200 - 4P and Q_s = -200 + P. Using this information, answer the following questions. (i) Calculate the equilibrium price. (ii) Calculate the equilibrium quantity.

A market is described by these two equations: Q_d = 90 - 3P, and Q_s = 10 + P. Using this information, answer the following questions. (i) Calculate the equilibrium price. (ii) Calculate the equilibrium quantity.

(Figure: Demand and Supply of Sugar) Use Figure: Demand and Supply of Sugar. The initial equilibrium price and quantity (at the intersection of S₁ and D) of sugar are:

(Figure: Demand and Supply of Sugar) Use Figure: Demand and Supply of Sugar. When the supply curve shifts from S1 to S2, the new intersection of supply and demand indicates an equilibrium price of _ and an equilibrium quantity of 4,000. This supply shift could have resulted from _.