Ch3p63Assignment1

Ch3p63Assignment1 - Microeconomics Assignment #1 (Ch. 3),...

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Microeconomics Assignment #1 (Ch. 3), p. 63 - #3,6, 9 3. What effect will each of the following have on the demand for small automobiles such as the Mini Cooper and Smart Car? a. Small cars become more fashionable – Demand Increases b. The price of large automobiles rises (with the price of small autos remaining the same – Demand Increases. c. Income declines and small autos are an inferior good – Demand Increases d. The price of gasoline substantially drops – Demand Decreases 6. What effect will each of the following have on the supply of auto tires? a. A technological advance in the methods of producing tires – Supply Increases b. A decline in the number of firms in the industry – Supply decreases c. An increase in the prices of rubber used in the production of tires – Supply Decreases d. The expectation that the equilibrium price of auto tires will be lower in the future than currently – Supply Increases e. A decline in the price of the large tires used for semi trucks and earth-hauling rigs (with
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Ch3p63Assignment1 - Microeconomics Assignment #1 (Ch. 3),...

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