Homework Set 2 - Homework Set 1: Chapters 3 & 4 Eco...

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Eco F304K Summer, 2008 Due Date: 6/16/08   Chapter 3: Supply and Demand 1. The following question tests your understanding of quantity demanded, quantity supplied, and market equilibrium applied to  the market for memory chips used in personal computers. Price of a 1 GB SDRAM Memory  Chip Quantity of 1 GB SDRAM demanded  (in millions) Quantity of 1 GB SDRAM supplied  (in millions) $75 45 6 $100 21 11 $150 15 15 $200 7 23 $225 4 36 A. As the price of 1GB MB memory chips rises, quantity demanded (rises/falls) _________.  When the price of memory chips  falls, quantity supplied (increases/decreases) _______. B. In this market, an equilibrium occurs at a price of _______.   At this price, (quantity demanded/demand) __________ equals  (quantity supplied/supply) ___________ with _______ million units exchanged. C. At a price of $225, (supply/quantity supplied) _________ exceeds (demand/quantity demanded) __________ by an amount  equal to ________ units.  The market is thus experiencing (excess supply/excess demand) __________.  As a result,  (producers/consumers) ________ will (lower/raise) ____________ the price of memory chips. D. At a price of $100, (demand/quantity demanded) _________ exceeds (supply/quantity supplied) __________ by an amount 
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Homework Set 2 - Homework Set 1: Chapters 3 & 4 Eco...

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