Question 1

Refer to Scenario 3.2 below to answer the questions that follow.
SCENARIO 3.2: Lettuce and spinach are substitutes.Lettuce and tomatoes are complements.Lettuce is a normal good.During the winter,about 20% of the lettuce crop was destroyed by flooding.
-Refer to Scenario 3.2.The government wants to protect consumers from rising food prices.Therefore,price restrictions are imposed on lettuce growers prohibiting them from raising the price of lettuce.This will cause

Accepted Answer

The destruction of 20% of the lettuce crop already indicates a decrease in supply. Imposing price restrictions to prevent price increases will lead to a situation where the price is too low to clear the market, resulting in excess demand for lettuce.

Question 2

Refer to the information provided in Figure 3.19 below to answer the questions that follow.
  Figure 3.19
-Refer to Figure 3.19.When the economy moves from Point A to Point B,there has been

Accepted Answer

The answer of Refer to the information provided in Figure...

Question 3

Related to the Economics in Practice on p.69: Increased preference for coffee in China would most likely shift the demand curve for coffee to the ________ and lead to a(n)________ in the price of coffee,ceteris paribus.

Accepted Answer

If the preference for coffee increases in China, it will most likely shift the demand curve for coffee to the right as consumers in China are demanding more coffee. This will lead to an increase in the price of coffee, ceteris paribus - meaning that all other factors affecting the price of coffee remain constant. Therefore, the correct answer choice is C, which states that the demand curve for coffee would shift to the right and lead to an increase in price.

Question 4

Related to the Economics in Practice on p.69: Consumption of coffee has been on the rise in China.Since tea and coffee are generally considered ________,an increase in the price of coffee should ________ the demand for tea,ceteris paribus.

Accepted Answer

Tea and coffee are generally considered substitutes. This means that if the price of coffee increases, consumers are likely to switch to tea instead, leading to an increase in the demand for tea, ceteris paribus. Thus, the correct answer is A) substitutes; increase.

Question 5

Refer to the information provided in Figure 3.10 below to answer the questions that follow.
  Figure 3.10
-Refer to Figure 3.10.In the Rollerblade market,which is not government controlled,you accurately predict that price will

Accepted Answer

The answer of Refer to the information provided in Figure...

Question 6

Refer to the information provided in Figure 3.13 below to answer the questions that follow. Figure 3.13 -Refer to Figure 3.13.The market is initially in equilibrium at Point B.If supply shifts from S₂ to S₁,the new equilibrium price will be ________ and the new equilibrium quantity will be ________.

Accepted Answer

With the increase in supply, the equilibrium price will decrease and the equilibrium quantity will increase.

Question 7

Refer to the information provided in Figure 3.13 below to answer the questions that follow. Figure 3.13 -Refer to Figure 3.13.The market is initially in equilibrium at Point A.If supply shifts from S₁ to S₂ and the price of cheeseburgers remains constant at $5.00,there will be

Accepted Answer

The answer of Refer to the information provided in Figure...

Question 8

Refer to the information provided in Figure 3.12 below to answer the questions that follow. Figure 3.12 -Refer to Figure 3.12.The market is initially in equilibrium at Point A.If demand shifts from D₁ to D₂ and the price of burritos remains constant at $3.00,there will be

Accepted Answer

If demand increases from D1 to D2 while the price remains constant at $3.00, the quantity demanded will exceed the quantity supplied, resulting in an excess demand of 150 million pounds of burritos.

Question 9

Refer to Scenario 3.2 below to answer the questions that follow.
SCENARIO 3.2: Lettuce and spinach are substitutes.Lettuce and tomatoes are complements.Lettuce is a normal good.During the winter,about 20% of the lettuce crop was destroyed by flooding.
-Refer to Scenario 3.2.As a result of the flooding during the winter,you would expect that

Accepted Answer

When 20% of the lettuce crop is destroyed by flooding, the supply of lettuce decreases. This decrease in supply causes the price of lettuce to increase due to the law of supply and demand. As lettuce is a normal good and a substitute for spinach, consumers may switch to purchasing spinach instead, leading to a decrease in the quantity demanded of lettuce. Additionally, lettuce and tomatoes are complements, meaning that a decrease in the demand for lettuce may also lead to a decrease in the demand for tomatoes. Therefore, the supply of lettuce decreases, the price of lettuce increases, and the quantity demanded of lettuce decreases.

Question 10

Refer to the information provided in Figure 3.12 below to answer the questions that follow. Figure 3.12 -Refer to Figure 3.12.The market is initially in equilibrium at Point B.If demand shifts from D₂ to D₁,the new equilibrium price will be ________ and the new equilibrium quantity will be ________.

Accepted Answer

When demand shifts from D2 to D1, the equilibrium moves to a lower price and quantity, which is $3.00 and 250 units, respectively.

Question 11

Refer to the information provided in Figure 3.19 below to answer the questions that follow.
  Figure 3.19
-Refer to Figure 3.19.When the economy moves from Point A to Point C,there has been

Accepted Answer

The answer of Refer to the information provided in Figure...

Question 12

Refer to the information provided in Figure 3.12 below to answer the questions that follow. Figure 3.12 -Refer to Figure 3.12 The market is initially in equilibrium at Point B.If demand shifts from D₂ to D₁ and the price of burritos remains constant at $4.00,there will be

Accepted Answer

The answer of Refer to the information provided in Figure...

Question 13

Refer to Scenario 3.2 below to answer the questions that follow.
SCENARIO 3.2: Lettuce and spinach are substitutes.Lettuce and tomatoes are complements.Lettuce is a normal good.During the winter,about 20% of the lettuce crop was destroyed by flooding.
-Refer to Scenario 3.2.The floods that destroyed part of the lettuce crop would have caused the equilibrium price of spinach to ________ and the equilibrium quantity of spinach to ________.

Accepted Answer

Since lettuce and spinach are substitutes, a decrease in the supply of lettuce (due to flooding) would increase the demand for spinach, leading to an increase in both the equilibrium price and quantity of spinach.

Question 14

Refer to the information provided in Figure 3.19 below to answer the questions that follow.
  Figure 3.19
-Refer to Figure 3.19.When the economy moves from Point E to Point B,there has been

Accepted Answer

The answer of Refer to the information provided in Figure...

Question 15

Refer to the information provided in Figure 3.13 below to answer the questions that follow. Figure 3.13 -Refer to Figure 3.13.The market is initially in equilibrium at Point A.If supply shifts from S₁ to S₂,the new equilibrium price will be ________ and the new equilibrium quantity will be ________.

Accepted Answer

The answer of Refer to the information provided in Figure...

Question 16

Refer to the information provided in Figure 3.19 below to answer the questions that follow.
  Figure 3.19
-Refer to Figure 3.19.When the economy moves from Point A to Point E,there has been

Accepted Answer

When the economy moves from Point A to Point E, there is an increase in demand and a decrease in supply, as shown by the shift of the demand curve to the right and the shift of the supply curve to the left. This results in an increase in price and an ambiguous change in quantity, as it depends on the relative size of the shift in demand and supply.

Question 17

Refer to the information provided in Figure 3.12 below to answer the questions that follow. Figure 3.12 -Refer to Figure 3.12 The market is initially in equilibrium at Point A.If demand shifts from D₁ to D₂,the new equilibrium price will be ________ and the new equilibrium quantity will be ________.

Accepted Answer

Demand has shifted to the right, which leads to an increase in both price and quantity. The new equilibrium price is at the intersection of the new demand curve (DS1U1B12S1U1B0) and the original supply curve (S1U1B0), which is at $4.00. The new equilibrium quantity is at the quantity where the new demand curve (DS1U1B12S1U1B0) intersects with the original supply curve (S1U1B0), which is at 350. Therefore, the correct answer is (C) $4.00; 350.

Question 18

Refer to Scenario 3.2 below to answer the questions that follow.
SCENARIO 3.2: Lettuce and spinach are substitutes.Lettuce and tomatoes are complements.Lettuce is a normal good.During the winter,about 20% of the lettuce crop was destroyed by flooding.
-Refer to Scenario 3.2.The floods that destroyed part of the lettuce crop would have caused

Accepted Answer

As lettuce is a normal good and part of the crop was destroyed, its price would increase, leading to a decrease in demand for lettuce. As lettuce and tomatoes are complements, a decrease in demand for lettuce would lead to a decrease in demand for tomatoes as well. Therefore, the floods would cause a decrease in the demand for tomatoes.

Question 19

Related to the Economics in Practice on p.72: One explanation for the increase in the price of the Baltimore newspaper is the increase in the cost of newsprint.This would cause the ________ of Baltimore newspapers to ________.

Accepted Answer

An increase in the cost of newsprint would cause a decrease in the supply of Baltimore newspapers, leading to a decrease in the quantity supplied. This is because higher costs of production decrease the profitability for producers, leading them to reduce the quantity of newspapers they supply at each price level.

Question 20

Refer to Scenario 3.2 below to answer the questions that follow.
SCENARIO 3.2: Lettuce and spinach are substitutes.Lettuce and tomatoes are complements.Lettuce is a normal good.During the winter,about 20% of the lettuce crop was destroyed by flooding.
-Refer to Scenario 3.2.If at the same time that part of the lettuce crop was destroyed,consumer income also decreased,then,ceteris paribus,in the market for lettuce this would have caused

Accepted Answer

The answer of Refer to Scenario 3.2 below to answer...

Quiz 3: Demand,supply,and Market Equilibrium

Refer to the information provided in Figure 3.19 below to answer the questions that follow. Figure 3.19 -Refer to Figure 3.19.When the economy moves from Point A to Point B,there has been

Related to the Economics in Practice on p.69: Increased preference for coffee in China would most likely shift the demand curve for coffee to the and lead to a(n) in the price of coffee,ceteris paribus.

Related to the Economics in Practice on p.69: Consumption of coffee has been on the rise in China.Since tea and coffee are generally considered ,an increase in the price of coffee should the demand for tea,ceteris paribus.

Refer to the information provided in Figure 3.10 below to answer the questions that follow. Figure 3.10 -Refer to Figure 3.10.In the Rollerblade market,which is not government controlled,you accurately predict that price will

Refer to the information provided in Figure 3.13 below to answer the questions that follow. Figure 3.13 -Refer to Figure 3.13.The market is initially in equilibrium at Point B.If supply shifts from S₂ to S₁,the new equilibrium price will be and the new equilibrium quantity will be .

Refer to the information provided in Figure 3.13 below to answer the questions that follow. Figure 3.13 -Refer to Figure 3.13.The market is initially in equilibrium at Point A.If supply shifts from S₁ to S₂ and the price of cheeseburgers remains constant at $5.00,there will be

Refer to the information provided in Figure 3.12 below to answer the questions that follow. Figure 3.12 -Refer to Figure 3.12.The market is initially in equilibrium at Point A.If demand shifts from D₁ to D₂ and the price of burritos remains constant at $3.00,there will be

Refer to the information provided in Figure 3.12 below to answer the questions that follow. Figure 3.12 -Refer to Figure 3.12.The market is initially in equilibrium at Point B.If demand shifts from D₂ to D₁,the new equilibrium price will be and the new equilibrium quantity will be .

Refer to the information provided in Figure 3.19 below to answer the questions that follow. Figure 3.19 -Refer to Figure 3.19.When the economy moves from Point A to Point C,there has been

Refer to the information provided in Figure 3.12 below to answer the questions that follow. Figure 3.12 -Refer to Figure 3.12 The market is initially in equilibrium at Point B.If demand shifts from D₂ to D₁ and the price of burritos remains constant at $4.00,there will be

Refer to the information provided in Figure 3.19 below to answer the questions that follow. Figure 3.19 -Refer to Figure 3.19.When the economy moves from Point E to Point B,there has been

Refer to the information provided in Figure 3.13 below to answer the questions that follow. Figure 3.13 -Refer to Figure 3.13.The market is initially in equilibrium at Point A.If supply shifts from S₁ to S₂,the new equilibrium price will be and the new equilibrium quantity will be .

Refer to the information provided in Figure 3.19 below to answer the questions that follow. Figure 3.19 -Refer to Figure 3.19.When the economy moves from Point A to Point E,there has been

Refer to the information provided in Figure 3.12 below to answer the questions that follow. Figure 3.12 -Refer to Figure 3.12 The market is initially in equilibrium at Point A.If demand shifts from D₁ to D₂,the new equilibrium price will be and the new equilibrium quantity will be .

Related to the Economics in Practice on p.72: One explanation for the increase in the price of the Baltimore newspaper is the increase in the cost of newsprint.This would cause the of Baltimore newspapers to .

Quiz 3: Demand,supply,and Market Equilibrium

Refer to the information provided in Figure 3.19 below to answer the questions that follow. Figure 3.19 -Refer to Figure 3.19.When the economy moves from Point A to Point B,there has been

Related to the Economics in Practice on p.69: Increased preference for coffee in China would most likely shift the demand curve for coffee to the ________ and lead to a(n) ________ in the price of coffee,ceteris paribus.

Related to the Economics in Practice on p.69: Consumption of coffee has been on the rise in China.Since tea and coffee are generally considered ________,an increase in the price of coffee should ________ the demand for tea,ceteris paribus.

Refer to the information provided in Figure 3.10 below to answer the questions that follow. Figure 3.10 -Refer to Figure 3.10.In the Rollerblade market,which is not government controlled,you accurately predict that price will

Refer to the information provided in Figure 3.13 below to answer the questions that follow. Figure 3.13 -Refer to Figure 3.13.The market is initially in equilibrium at Point A.If supply shifts from S1 to S2 and the price of cheeseburgers remains constant at $5.00,there will be

Refer to the information provided in Figure 3.12 below to answer the questions that follow. Figure 3.12 -Refer to Figure 3.12.The market is initially in equilibrium at Point A.If demand shifts from D1 to D2 and the price of burritos remains constant at $3.00,there will be

Refer to the information provided in Figure 3.19 below to answer the questions that follow. Figure 3.19 -Refer to Figure 3.19.When the economy moves from Point A to Point C,there has been

Refer to the information provided in Figure 3.12 below to answer the questions that follow. Figure 3.12 -Refer to Figure 3.12 The market is initially in equilibrium at Point B.If demand shifts from D2 to D1 and the price of burritos remains constant at $4.00,there will be

Refer to the information provided in Figure 3.19 below to answer the questions that follow. Figure 3.19 -Refer to Figure 3.19.When the economy moves from Point E to Point B,there has been

Refer to the information provided in Figure 3.19 below to answer the questions that follow. Figure 3.19 -Refer to Figure 3.19.When the economy moves from Point A to Point E,there has been

Related to the Economics in Practice on p.72: One explanation for the increase in the price of the Baltimore newspaper is the increase in the cost of newsprint.This would cause the ________ of Baltimore newspapers to ________.

Related to the Economics in Practice on p.69: Increased preference for coffee in China would most likely shift the demand curve for coffee to the and lead to a(n) in the price of coffee,ceteris paribus.

Related to the Economics in Practice on p.69: Consumption of coffee has been on the rise in China.Since tea and coffee are generally considered ,an increase in the price of coffee should the demand for tea,ceteris paribus.

Refer to the information provided in Figure 3.13 below to answer the questions that follow. Figure 3.13 -Refer to Figure 3.13.The market is initially in equilibrium at Point A.If supply shifts from S₁ to S₂ and the price of cheeseburgers remains constant at $5.00,there will be

Refer to the information provided in Figure 3.12 below to answer the questions that follow. Figure 3.12 -Refer to Figure 3.12.The market is initially in equilibrium at Point A.If demand shifts from D₁ to D₂ and the price of burritos remains constant at $3.00,there will be

Refer to the information provided in Figure 3.12 below to answer the questions that follow. Figure 3.12 -Refer to Figure 3.12 The market is initially in equilibrium at Point B.If demand shifts from D₂ to D₁ and the price of burritos remains constant at $4.00,there will be

Related to the Economics in Practice on p.72: One explanation for the increase in the price of the Baltimore newspaper is the increase in the cost of newsprint.This would cause the of Baltimore newspapers to .