This preview shows page 1. Sign up to view the full content.
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
12 10 0 100 200
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
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...
View Full Document