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Chapter 3: Q. 1 - Critical Thinking Questions (page 69)
What has been the direction of the shift in the demand for breakfast cereals?
Left.
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Consider the following diagram of a market for one-bedroom rental apartments in a college community.
a. At a rental rate of \(1,000 per month, is there an excess quantity supplied, or is there an excess quantity demanded? What is the amount of the excess quantity supplied or demanded?
b.If the present rental rate of one-bedroom apartments is\)1,000 per month, through what mechanism will the rental rate adjust to the equilibrium rental rate of\(800?
c.At a rental rate of\)600 per month, is there an excess quantity supplied, or is there an excess quantity demanded? What is the amount of the excess quantity supplied or demanded?
d.If the present rental rate of one-bedroom apartments is \(600 per month, through what mechanism will the rental rate adjust to the equilibrium rental rate of\)800?
How could laws that ban tips causeareduction in the quality of the delivery
of services?
In fig 3-7, what are the effects of a price decrease from \(5 per portable power bank to \)3 per portable power bank on the quantities supplied by supplier 1 and by supplier 2 individually and combined?
For each of the following shifts in the demand curve and associated price change of complement or substitute item, explain whether the price of the complement or substitute must have increased or decreased.
a.Arise in the demand for a dashboard global positioning-system device follows a change in the price of automobiles, which are complements.
b.A fall in the demand fore-book readers follows a change in the price of e-books, which are complements.
c.Arise in the demand for tablet devices follows a change in the price of ultrathin laptop computers, which are substitutes.
d.A fall in the demand for physical books follows a change in the price of e-books, which are substitutes.
Why do you suppose that prices of barbecued brisket have been rising in
many U.S. cities?
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