blanchard_ch03

Bottled water and health club memberships b french

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Unformatted text preview: lar game consoles: XBox, PS3, and Wii. Explain the effect the following event on the demand for XBox games and the quantity of XBox games demanded, other things remaining the same. a. The price of an XBox falls. b. The prices of a PS3 and a Wii fall. c. The number of people writing and producing XBox games increases. d. Consumers’ incomes increase. e. Programmers who write code for XBox games become more costly to hire. f. The price of an XBox game is expected to fall. g. A new game console comes onto the market, which is a close substitute for XBox. 79 16 14 12 10 0 100 200 300 400 Quantity (pizzas per day) a. Label the curves. Which curve shows the willingness to pay for a pizza? b. If the price of a pizza is $16, is there a shortage or a surplus and does the price rise or fall? c. Sellers want to receive the highest possible price, so why would they be willing to accept less than $16 a pizza? d. If the price of a pizza is $12, is there a shortage or a surplus and does the price rise or fall? e. Buyers want to pay the lowest possible price, so why would they be willing to pay more than $12 for a pizza? 9160335_CH03_p053-080.qxd 80 6/22/09 8:56 AM Page 80 CHAPTER 3 Demand and Supply 24. Plenty of “For Sale” Signs but Actual Sales Lagging Like spring flowers, the “For Sale” signs are sprouting in front yards all over the country. But anxious sellers are facing the most brutal environment in decades, with a slumping economy, falling home prices, and rising mortgage foreclosures. The New York Times, May 26, 2008 a. Describe the changes in demand and supply in the market for homes in the United States. b. Is there a surplus of homes? c. What does the information in the news clip imply about price adjustments and the role of price as a regulator in the market for homes? 25. ‘Popcorn Movie’ Experience Gets Pricier … cinemas are raising … prices. … Demand for field corn, used for animal feed, … corn syrup and … ethanol, has caused its price to explode. That’s caused some farmers to shift fro...
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