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Chapter 3: Q. d - For Critical Thinking (page 57)

How could laws that ban tips causeareduction in the quality of the delivery

of services?

Short Answer

Expert verified

Fall in demand.

Step by step solution

01

Step1. Given information

Natural gas price has declined significantly.

02

Step2. Explanation

Since natural gas is a substitute for other sources of energy like coal and nuclear power, a fall in price of natural gas will hamper the demand for other sources. Therefore, like coal, demand for nuclear power will fall in US, Russia and China.

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Most popular questions from this chapter

Suppose that inalater market period,the quantities

supplied in the table in Problem 3-1 are unchanged.

The amount demanded,however,has increased by 30

million at each price.Construct the resulting demand

curve in the illustration you made for Problem 3-1.Is

this an increase or a decrease in demand? What are

the new equilibrium quantity and the new market

price?Give two examples of changes in ceteris paribus

conditions that might cause suchachange.

In Fig 3-2, the current position of the demand curve is D1, and the price of a portable power bank is $3. If there is an increase in the price of tablet devices that are complements to portable power banks, will the demand curve shift to D2 or to D3? What is the change in the amount of portable power banks demanded?

Why might increases in oil storage prices be required to

induce owners of aged storage tanks to increase the quan

tity of tank storage space supplied?(Hint:Owners must

incur expenses to refurbish storage tanks.)

Explain the law of demand

In the market for portable power banks(a normal good), explain whether the following events would cause an increase or a decrease in demand or an increase or decrease in the quantity demanded. Also, explain what happens to the equilibrium quantity and the market-clearing price.

a. There is an increase in the price of carry cases for portable power banks.

b. There is a decrease in the price of devices used to charge portable power banks.

c. There is an increase in the number of consumers of portable power banks.

d. A booming economy increases the income of the typical buyer of portable power banks.

e. Consumers of portable power banks anticipate that the price of this good will decline in the future.
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