Sp08_ex1_SA_econ4a-key

# Sp08_ex1_SA_econ4a-key - Part1 Version A 1. D 2. D 3. D 4....

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Part1 Version A 1. D 2. D 3. D 4. A 5. A 6. A 7. D 8. B 9. C 10. B 11. D 12. C 13. B or D 14. B 15. C 16. C 17. A 18. B 19. A 20. B or A 21. C 22. A 23. A 24. D 25. D

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Part II. SHORT ANSWER SHOPW ALL WORK AND USE A PEN 25 POINTS Price of iPods Quantity of iPods Demanded Quantity of iPods Supplied \$500 10000 85000 450 12000 60000 400 25000 48000 350 37000 37000 300 55000 20000 250 75000 9000 (6 points) 1. Explain the difference between a change in demand and a change in quantity demanded as well as explain how they are illustrated. (Do not actually illustrate) A change in demand is caused by (five) non-price factors and is shown as a movement of the curve. A change in quantity demanded is caused by a change in price and is shown as a movement along the curve. (3pts each) (4 points) 2. Based on the table above, if the price of Apple’s MP3 player the iPod is \$300, what problem exists and what is its size? 1Shortage of 35000 iPods
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## This note was uploaded on 03/30/2008 for the course ECON 004 taught by Professor Graf,pauledwin during the Spring '07 term at Pennsylvania State University, University Park.

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Sp08_ex1_SA_econ4a-key - Part1 Version A 1. D 2. D 3. D 4....

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