blanchard_ch03

Illustrate these changes in your graph 12 eurostar

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Unformatted text preview: 006 a. Explain how Da Vinci Code fans helped to raise Eurostar’s sales. b. CNN commented on the “fierce competition from budget airlines.” Explain the effect of this competition on Eurostar’s sales. c. What markets in Paris do you think these fans influenced? Explain the influence on three markets. 13. Of Gambling, Grannies, and Good Sense Nevada has the fastest growing elderly population of any state. … Las Vegas has … plenty of jobs for the over 50s. The Economist, July 26, 2006 Explain how grannies have influenced the a. Demand side of some Las Vegas markets. b. Supply side of other Las Vegas markets. 14. Use the link on MyEconLab (Textbook Resources, Chapter 3, Web Links) to obtain data on the prices and quantities of bananas in 1985 and 2002. a. Make a graph to illustrate the market for bananas in 1985 and 2002. b. On the graph, show the changes in demand and supply and the changes in the quantity demanded and the quantity supplied that are consistent with the price and quantity data. c. Why do you think the demand for and supply of bananas changed? 15. Use the link on MyEconLab (Textbook Resources, Chapter 3, Web Links) to obtain data on the price of oil since 2000. a. Describe how the price of oil changed. b. Use a demand-supply graph to explain what happens to the price when supply increases or decreases and demand is unchanged. c. What do you predict would happen to the price of oil if a new drilling technology permitted deeper ocean sources to be used? d. What do you predict would happen to the price of oil if a clean and safe nuclear technology were developed? e. How does a higher price of oil influence the market for ethanol? f. How does an increase in the supply of ethanol influence the market for oil? 9160335_CH03_p053-080.qxd 6/22/09 8:56 AM Page 79 Problems and Applications 21. In 2008, as the prices of homes fell across the United States, the number of homes offered for sale decreased. a. Does this fact illustrate the law of demand or the law of supply? Exp...
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