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1010(B) - 2010-01 - CH 03 - Demand & Supply_wANSW

1010(B) - 2010-01 - CH 03 - Demand & Supply_wANSW -...

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Unformatted text preview: Student: Date: Time : Instructor: MiChaEl Lanyi Assignment: 2010-01 - 1010(B) - CH 03 - Demand 8: Supply Cnm‘se: Parkin Microeconomics 7e Book: Parkin, Microeconomics: Canada in the Global Environment, Seventh Edition A demand curve DA. shows us that the highest price that someone is willing to pay for an additional unit of a good or service rises as the quantity increases OB. is a willingness-and-ability-to-paycurve O C. tells us that marginal benefit rises as the quantity purchased increases OD. tells us the minimum that someone is willing to pay for an additional unit of a good or service The graph shows a demand curve for DVDs. 24, Price (dollars Der DVD) Use a line tool or a curve tool to draw a demand curve that shows what happens in the market for DVDs if the price of a DVD player, a complement of a DVD, rises but all other influences on buying plans remain the same, Label the curve D]. 20— When an event occurs that changes the demand for DVDs, if demand increases and if demand decreases. CA. a movement up along the demand curve occurs; a movement down along the demand curve occurs 0 B_ a movement down along the demand curve occurs; a movement up along the demand curve occurs , DU DC. the demand curve shifts rightward; the demand curve shifts 4‘ leftward _ OD. the demandcurve shifts leftward; the demandcurve shifis Do . 1i . 2i - :‘5 . A . 5‘, . é rigbbNard Quantity (millions of DVDs per year) >>> Draw only the objects specified in the question. Page 1 Student: Date: Time : Instructor: MiChaBl Lanyi Assignment: 2010-01 - 1010(B) - CH 03 - Demand 8: Supply Course: Perkin Microeconomics 7e Book: Parkin, Microeconomics: Canada in the Global Envirnmnent, Seventh Edition All of the following will change the demand for DVD players except CA. a change in the price of an MP3 player (an MP3 player is a substitute for a DVD player) OB. a change in the price of a DVD (3 DVD is a complement of a DVD player) 0C. a change in the price of a DVD player DD. 2: change in the average income An increase in the price of a DVD player DA. decreases the quantity of DVD players demanded and results in a movement up along the demand curve for a DVD player OB. decreases the demand for DVD players and shifts the demand curve for a DVD player leftward O c. increases the quantity of DVD players demanded and results in a movement down along the demand curve for a DVD player OD. increases the demand for DVD players and shifts the demand curve for a DVD player rightward Page 2 Student: Instructor: Michael Lanyi Assignment: 2010-01 - 1010(B) - CH 03 - Demand 8:. Supply Date: Course: Parkin Microeconomics 7e Time: Book: Parkin, Microeconomics: Canada in the Global Environment, Seventh Edition 4_ The figure shows the demand curve for cell phones. 1007 Price (dollars per cellphone) If the price of a cell phone rises from $20 to $40, while all other influences on buying plans are unchanged, the quantity of cell phones demanded from to . 30- OA. decreases; 24 million; 18 million OB. increases; 12 million; 18 million 50’ 0C. decreases; 18 million; 12 million . . . , . 407 OD. Increases; 18 million; 24 million The change in the price of a cell phone illustrates the law of demand in 20- action. D DA. True 0 l l l | | c 6 12 13 24 30 D 3' False Quantity (millions of cell phones per year) Page 3 Student: Instructor: Michael Lanyi Assignment: 2010-01 - 1010(B) - CH 03 - Demand 8: Supply Date: Cnurse: Parkin Microeconomics 7e Time: Book: Parkin, Microeconomics: Canada in the Global Environment, Seventh Edition 5_ Use a line tool or a curve tool to draw a demand curve for lattes, Label 12* Price (dollars Per latte) the curve. Use any prices and quantities you Wish, but make your demand curve 10* obey the law of demand The law of demand states that , the the price of a good, 8- the smaller is the quantity demanded; and the the price of a good, the greater is the quantity demanded. 67 0A. even when other factors change; higher; lower 4, O B. other things remaining the same; higher; lower 0 c. other things remaining the same; lower; higher 27 OD. even when other factors change; lower; higher 0 n i i ii i 1‘0 Quantity (millions of latics per year) >>> Draw only the objects specified in the question. 6. Taking an MP3 player to the gym when you work out becomes less popular. As a result, 0A. the demand for MP3 players decreases OB. the quantity of MP3 players demanded decreases DC. the demand for MP3 players increases OD. the quantity of MP3 players demanded increases Page 4 Student: Instructor: Michael Lanyi Assignment: 2010-01 - 1010(B) - CH 03 - Demand 8: Supply Date: Course: Parkin Microeconomics 7e Time: Bunk: Parkin, Microeconomics: Canada in the Global Environment, Seventh Edition 7_ If, as the price of Coke increases, the quantity of Pepsi that people buy increases, then Coke and Pepsi are 0A. substitutes O B. complements 0C. normal goods OD. inferior goods 3_ If, as the price of a gym membership increases, the quantity of bottled water that people buy decreases, then gym memberships and bottled water are OA. complements OB. inferior goods 0 C. normal goods 0 D. substitutes 9_ If, as Betsy's income increases, her demand for hot dogs decreases, then for Betsy, hot dogs are 0A. a normal good OB. an inferior good 0C. a subsititute O D. a complement Page 5 Student: Instructor: Michael Lanyi Assignment: 2010-01 - 1010(B) - CH 03 - Demand 8: Supply Date: Course: Parkin Microeconomics 7e Time: Bunk: Parkin, Microeconomics: Canada in the Global Environment, Seventh Edition 10. If, as Adrienne’s income decreases, her demand for TVs decreases, then for Adrienne, TVs are 0A. a normal good OB. a subsititute 0C. an inferior good 0 D. a complement 11_ The figure shows the demand curve for milkshakes. 10 Price (dollars Der milkshake) Suppose that the price of a milkshake falls but all other influences on buyers' plans remain the same, a Show the effect in the graph, using either the single arrow tool to draw an arrow on the demand curve showing the direction of change, or the 6 line tool to draw a new demand curve. If the price of a milkshake falls, 3 the demand curve occurs. . . . 4 If any factor that 1nfluences buying plans other than the price changes, then a the demand curve occurs. OA. movement down along; shift of 2 QB. rightward shift of; movement down along 0C. movement up along; shift of U U 10 20 3D 40 50 ‘ Quantity (milkshakes per day) OD. leftward shlft of; movement up along >>> Draw only the objects specified in the question. Page 6 Student: Instructor: Michael Lanyi Assignment: 2010-01 - 1010(B) - CH 03 - Demand 8: Supply Date: Course: Parkin Microeconomics 7e Time: Bunk: Parkin, Microeconomics: Canada in the Global Environment, Seventh Edition 12. A supply curve DA. tells us the lowest price at which someone is willing to sell OB. tells us that marginal cost decreases as the quantity purchased increases 0C. shows us that the highest price that someone is willing to pay for an additional unit of a good or service falls as the quantity decreases OD. tells us the minimum that someone is willing to pay for an additional unit of a good or service 13_ The figure shows the supply curve of MP3 players, 100, PriCE(dU|18T5 per MF3 Player) If the price of an MP3 player rises from $20 to $80, while all other , S influences on selling plans are unchanged, the quantity of MP3 players one supplied 0A. increases from 6 million to 24 million ' 60— 03. decreases by an unknown amount 0C. decreases from 24 million to 6 million 40_ OD. increases by an unknown amount 7 207 D i l i l i l i I . I o 6 12 13 24 30 Quantity (millions ofMP3 players per year) Page 7 Student: Instructor: Michael Lanyi Assignment: 2010-01 - 1010(B) - CH 03 - Demand 8: Supply Date: Course: Parkin Microeconomics 7e Time: Bunk: Parkin, Microeconomics: Canada in the Global Environment, Seventh Edition 14_ In the market for skim milk, the price of a carton of skim milk rises. Explain the effect of this event on the quantity of skim milk supplied and on the supply of skim milk. CA. The supply of skim milk is unchanged and the quantity of skim milk supplied decreases OB. The quantity of skim milk supplied increases and the supply of skim milk also increases» OC. The quantity of skim milk supplied increases and the supply of skim milk is unchanged. OD. The supply of skim milk increases and the quantity of skim milk supplied is unchanged. 15. Bottled water and health club memberships are OA. complements in production 0 B. complements C) C. substitutes O D. substitutes in production French fries and baked potatoes are OA. substitutes but not substitutes in production OB. complements or complements in production OC. substitutes or substitutes in production 0 D. complements but not complements in production Page 8 Student: Instructor: Michael Lanyi Assignment: 2010-01 - 1010(B) - CH 03 - Demand 8: Supply Date: Course: Parkin Microeconomics 7e Time: Bunk: Parkin, Microeconomics: Canada in the Global Environment, Seventh Edition 16_ Leather purses and leather shoes are OA. substitutes in production 0 B. substitutes 0C. complements in production 0 D. complements but not complements in production SUVs and compact cars are DA. substitutes but not substitutes in production 0 B. complements but not complements in production QC. substitutes or substitutes in production OD. complements or complements in production 17. In the market for books, the supply of books will decrease if any of the following occur except OA. an increase in the price of paper OB. a decrease in the number of book publishers 0C. an increase in the future expected price of a book DD. 21 decrease in the price of a book Page 9 Student: Instructor: Michael Lanyi Assignment: 2010-01 - 1010(B) - CH 03 - Demand 8: Supply Date: Course: Parkin Microeconomics 7e Time: Bunk: Parkin, Microeconomics: Canada in the Global Environment, Seventh Edition 18_ The table gives the demand and supply schedules for hamburgers. P . Quantity Quantity nce . (dollars demanded supplied What is the equilibrium price of a hamburger arid the equilibrium per hamburger) (hamburgers per day) quantity of hamburgers per day? 1 1 20 4o . . . . . 2 100 60 The equilibrium quantity of hamburgers is D a day. 3 BO 80 4 60 1 OD The equilibrium price is $|:| a hamburger. 5 40 120 6 20 1 4D 19_ Given the demand and supply curves in the graph, use the point tool to s on, Price (dollars per hamburger) draw a point at the equilibrium price and quantity. ' The equilibrium pnce is 5_00_ DA. unknown because we don't know the number of hamburgers 7 5 actually sold 430’ OB. $3.00per hamburger ’ 330, OC. $3.00 X 2.5 million hamburgers 7 CD. 2.5 million hamburgers 2.007 D 1.00— o.oo : i . . i i - i i i D 1 2 3 4 5 Quantity (millions of hamburgers per ycar) >>> Draw only the objects specified in the question. Page 10 Student: Instructor: Michael Lanyi Assignment: 2010-01 - 1010(B) - CH 03 - Demand 8: Supply Date: Course: Parkin Microeconomics 7e Time: Bunk: Parkin, Microeconomics: Canada in the Global Environment, Seventh Edition 20_ Given the demand and supply curves in the graph, use the line tool to 7 Price @011“ Per tickeI) draw a horizontal line at a price at which there is a shortage of concert tickets. Label it Shorta e, 7 g as 8 When a shortage arises, the price to its equilibrium, which , 300— 0A. rises; decreases the quantity demanded and increases the quantity 7 supplied OB. falls; increases demand and decreases supply 200’ Oc. falls; increases the quantity demanded and decreases the quantity ' D supplied 1007 DD. rises; decreases demand and increases supply 0 i i i i i i i I I I o 1 2 a 4 5 Quantity (millions of concert iickcts per year) >>> Draw only the objects specified in the question. Page 11 Student: Instructor: Michael Lanyi Assignment: 2010-01 - 1010(B) - CH 03 - Demand 8: Supply Date: Cnurse: Parkin Microeconomics 7e Time: Bunk: Parkin, Microeconomics: Canada in the Global Environment, Seventh Edition 21_ Given the demand and supply curves in the graph, use the 5007 Price (dollars periacket) line tool to draw a horizontal line at a price at which there is a surplus of leather jackets. Label it Surplus. - S 400— When a surplus arises, the price to its equilibrium, which 7 3007 DA. falls; increases demand and decreases supply , OB. rises; decreases the quantity demanded and increases the quantity 2007 D supplied QC. rises; decreases demand and increases supply 1007 OD. falls; increases the quantity demanded and decreases the quantity supplied ' 0 i i i i i i i | I | o 1 2 a 4 5 Quantity (millions of lcathcrjackcts per year) >>> Draw only the objects specified in the question. Page 12 Student: Instructor: Michael Lanyi Assignment: 2010-01 - 1010(B) - CH 03 - Demand 8: Supply Date: Course: Parkin Microeconomics 7e Time: Back: Parkin, Microeconomics: Canada in the Global Environment, Seventh Edition 22_ The table shows the demand schedule and supply schedule in the market for french fries. Price Quantity Quantity . . . . _ . “on”, demanded supplied If the price of french files 15 $1.80 a servmg, there 15 _ m the per sawing) (“Mugs per week) market for french fries and the price of french fries Will 0.30 182 1 76 CA. a surplus; not change 0.60 180 180 O B. equilibrium; rise 0.90 179 1 B5 1.20 177 1 89 DC. a surplus; fall 150 176 194 DD. a shortage; not change 1'30 174 195 2.10 173 203 When the quantity demanded equals the quantity supplied CA. the price has a tendency to rise OB. the price has a tendency to either rise or fall QC. there is no influence to move the price away from its equilibrium OD. the price has a tendency to fall Page 13 Student: Instructor: Michael Lanyi Assignment: 2010-01 - 1010(B) - CH 03 - Demand 8: Supply Date: Cnurse: Parkin Microeconomics 7e Time: Back: Parkin, Microeconomics: Canada in the Global Environment, Seventh Edition 2 3_ The table shows the demand and supply schedules for milkshakes 147 Price (dollars Pet milkshake) - Quantity Quantity - P . (d015,: demanded supplled 12- per mllkshake) [mllkshakes per week) 7 4 130 60 1 O_ 6 140 100 7 8 100 140 a, 10 so 130 7 12 20 220 6— Use the line tool to draw a demand curve and a supply curve using the 7 numbers in the table. Label the curves. 4' Use the point tool to show the equilibrium price and equilibrium 2* quantity. - o i i . i i i 0 4‘0 do 1‘20 uio 260 21in Quantity (milkshakes per week ) >>> Draw only the objects specified in the question. Page 14 Student: Instructor: Michael Lanyi Assignment: 2010-01 - 1010(B) - CH 03 - Demand 8: Supply Date: Course: Perkin Microeconomics 7e Time: Bunk: Parkin, Microeconomics: Canada in the Global Environment, Seventh Edition 24_ The table shows the demand and supply schedules for gum. Price Quantity Quantity If the price is 80 cents a pack, there is a of (cents demanded supplied gum. per pack] (packs of gum per week) 20 1 80 60 So the price of a pack of gum , the quantity demanded 40 140 100 and the quantity supplied . 60 100 14D 80 60 1 80 The market moves to equilibrium, 100 20 220 0A. shortage; rises; decreases; increases OB. shortage; falls; decreases; increases QC. surplus; rises; increases; decreases OD. surplus; falls; increases; decreases 25. A decrease in the demand for computers brings a _ of computers at the original price and a _ in their price. OA. surplus; fall 0 B. shortage; fall OC. shortage; rise OD. surplus; rise 26. An increase in the supply of donuts brings a of donuts at the original price and a in their price, DA. shortage; fall OB. shortage; rise OC. surplus; rise OD. surplus; fall Page 15 Student: Instructor: Michael Lanyi Assignment: 2010-01 - 1010(B) - CH 03 - Demand 8: Supply Date: Cnurse: Parkin Microeconomics 7e Time: Bunk: Parkin, Microeconomics: Canada in the Global Environment, Seventh Edition 27. The price of a PC, a substitute for an MP3 player, falls. As a result, you predict that the equilibrium quantity of MP3 players and the equilibrium price OA. decreases; falls OB. increases; rises 0C. decreases; rises OD. increases; falls 28. A decrease in the demand for sports cars together with a decrease in the supply of sports cars create a surplus or a shortage of sports cars at the original price. The price of sports cars DA. will not; will rise 0 B. will not; will not change DC. might; will fall OD. might; might fall, rise, or not change 29_ If the price of apple juice decreases and the wage rate paid to orange grove workers increases, the equilibrium price of orange juice and the equilibrium quantity of orange juice DA. falls; increases OB. rises, falls, or remains the same; decreases QC. rises, falls, or remains the same; increases, decreases, or remains the same 0 D. rises; increases Page 16 Student: Instructor: Michael Lanyi Assignment: 2010-01 - 1010(B) - CH 03 - Demand 8: Supply Date: Course: Parkin Microeconomics 7e Time: Bunk: Parkin, Microeconomics: Canada in the Global Environment, Seventh Edition 30_ An increase in the demand for burgers together with a decrease in the supply of burgers brings a of burgers at the original price and a in their price. DA. shortage; fall OB. surplus; rise 0C. surplus; fall OD. shortage; rise 31_ An increase in the the price of rubber matting, a complement in production of paint, will the equilibrium price of paint and the equilibrium quantity of paint. DA. increase; decrease O B. increase; increase 0 C. decrease; increase 0 D. decrease; decrease Page 17 Student: Instructor: Michael Lanyi Assignment: 2010-01 - 1010(B) - CH 03 - Demand 8: Supply Date: Course: Parkin Microeconomics 7e Time: Bunk: Parkin, Microeconomics: Canada in the Global Environment, Seventh Edition 32_ Read the news clip and then answer the following questions. Consumer Tech: Blur-Ray Wins, but Does Anyone Care? You would expect the price of a used Toshiba player on eBay to as a result of DA. fall; a decrease in demand and a decrease in supply OB. fall; a decrease in demand and an increase in supply C) C. rise; the Toshiba player becoming a collector's item OD. rise; a decrease in demand and a decrease in supply The price of a Blu—ray player as DA. rises; supply of Blu-ray players increases OB. rises; demand for Blu-ray players increases DC. rises; demand for Blu-ray players decreases OD. falls; supply of Blu-ray players decreases Toshiba Corp. yesterday raised the white flag in the war over the next-generation home movie format, announcing the end of its HD DVD business in a victory for Sony Corpi‘s Blu-ray technology. Canadian Business Unline, July 9, 2008 Page 18 Student: Instructor: MiChael Lanyi Assignment: 2010-01 - 101003) - CH 03 - Demand Sr. Supply Date: Course: Parkin Microeconomics 7e Time: Book: Parkin, Microeconomics: Canada in the Global Environment, Seventh Edition 3 3, The equation of the demand curve in the graph is . Price 0A. P=650-SOQD 70° OB. QD=650-50P 600 0C. P=50-650QD 500 OD. P = 650 + SOQD 400 300 200 D 100 0 0 2 4 B 3 1O 12 Quantity Page 19 Student: Instructor: MiChael Lanyi Assignment: 2010-01 - 1010(B) - CH 03 - Demand 8: Supply Date: Course: Parkin Microeconomics 7e Time: Book: Parkin, Microeconomics: Canada in the Global Environment, Seventh Edition 34, The equation of the supply curve in the graph is . Price CA. Q5: 50 + 101’ OB. P=50-10Q5 200 0C. P = 50 +10QS 5 OD. P= 10+ SDQS 100 0 0 2 4 B 8 1O 12 Quantity 35, The demand curve isP = 800 -2QD. The supply curve is P = 400 + 2095. At market equilibrium, the equilibrium quantity is and the equilibrium price is OA. 20; 0.06 OB. 18.2;763.64 DC. 76164; 18.2 OD. 0.06; 20 Page 20 Student: Instructor: Michael Lanyi Assignment: 2010-01 - 1010(B) - CH 03 - Demand 8:. Supply Date: Course: Parkin Microeconomics 7e Time: Bnok: Parkin, Microeconomics: Canada in the Global Environment, Seventh Edition 36_ The demand for air conditioners is P = 1,000 - SOQD. The supply of air conditioners is P = 500+20QS. What is the equilibrium price of an air conditioner and what is the equilibrium quantity of air conditioners per...
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