Unformatted text preview: does quantity demanded
6. If supply decreases by
more than demand
decreases, what happens
to equilibrium price? Critical Thinking
7. A producer makes 100
units of good X at $40
each. Under no circumstances will he sell the
good for less than $40.
Do you agree or disagree?
Explain your answer. Graphing Economics
8. Graph the following:
a. Demand increases in
b. Supply decreases in a
c. Demand decreases in
d. Demand increases by
more than supply
increases in a market.
Section 1 Supply and Demand Together 139 06 (128-153) EMC Chap 06 11/21/05 3:13 PM Page 140 Focus Questions Supply and
Everyday Life Why the Long Lines for
Suppose tickets for a rock concert go on
sale at 8 a.m. on Saturday. A long line of people forms even before the ticket booth
opens. The average person has to wait an
hour to buy a ticket. Some people don’t get
to buy tickets at all because the concert sells
out before they get to the ticket booth.
Why do so many people wait in line to
buy tickets to the rock concert, yet you don’t
see a long line of people waiting to buy food
at the grocery store or TVs at the electronics
store? Also, why are some of the people waiting to buy tickets to the rock concert turned
away, but no one who wants to buy bread is
turned away at the grocery store, and no one
who wants to buy a TV set is turned away at
the electronics store? The market for the
rock concert tickets (at least in this instance)
must differ somehow, but how?
In economic terms, when some people go
away without being able to buy what they
came to buy, it means that quantity demanded
exceeds quantity supplied, resulting in a shortage in the market.
140 Chapter 6 Price: Supply and Demand Together Why do people wait in long lines to buy
tickets for some rock concerts?
Why does a house cost more in San
Francisco than in Louisville, but a candy bar
costs the same in both cities?
Why does it cost more to go to the movies
on Friday night than on Tuesday morning?
What does traffic congestion have to...
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This document was uploaded on 01/16/2014.
- Winter '14