practice-qn-3 - b) Suppose Canucks wins the NHL in a year...

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E C ON 103-D200: Prin c ipl e s of Mi c ro ec onomi c s Fall 2010 , SFU Pra c ti ce Qu e s tion S e t 3 (To b e di s c u ss e d in tutorial s ) 1. Mike’s income rises. Looking at Mike’s demand curve for luxury spa treatments, what kind of movement do we expect? 2. Consider the market for beer in Vancouver as described by the following equations: Q d = 30 0.5P (demand) Q s = - 1.5 + 0.25P (supply) where Q is measured in millions of barrels per year and P is the price in dollars per barrel. a) What is the equilibrium price and quantity of beer in Vancouver?
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Unformatted text preview: b) Suppose Canucks wins the NHL in a year (I wish!). How will this affect this equilibrium price and quantity of beer in that year? Illustrate graphically. 3. Please solve question number 1 and 2 of Practice Problems (Section D) of chapter 4 in your study guide. 4. Please solve question number 1 of section E (Advanced Critical Thinking) of chapter 4 in your study guide....
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