Micro Chapter 3 HW - these weekends as there are on any...

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Steve Siegel 2/19/2008 Chapter 3 Homework 3.1. a) Substitutes b) Complements c) Complements d) Substitutes 3.3. a) Demand would increase or shift right in the Adirondack vacation market b) The demand for pizza in the pizza market would increase or shift right, because nobody will consume hamburgers anymore due to the fact that it is linked to heart disease. c) Demand in the market for CD’s will increase because of the increased cost of its substitute. It will force buyers into the CD market therefore shifting the demand curve right. d) With an increase in price for CD’s, buyers will decrease the amount of CD’s they consume. Demand for CD’s will decrease or shift to the left. 3.9. The rates of hotel rooms near campus will increase on parents and graduation weekend. Demand for these hotel rooms’ increases and assuming there are the same amounts of hotel rooms available during
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Unformatted text preview: these weekends as there are on any other weekend, the supply of rooms stays constant. Therefore Demand increases or shifts right and supply stays the same therefore increasing the price during parent’s weekend and graduation weekend. 3.13. The equilibrium price of apples will increase due to the inverse relationship of both the supply and demand curve. 3.15. The demand-supply model predicts that the quantity of tofu sold in the U.S. has increases from then to now. However both the demand and supply curves have moved in similar directions therefore you cannot tell what equilibrium price will do. Whether it will increase or decrease, it will be impossible to know without additional information....
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Micro Chapter 3 HW - these weekends as there are on any...

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