# Working with numbers and graphs 3 4p101 3 draw a

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Working with Numbers and Graphs: 3, 4(p101) #3 Draw a diagram that shows a larger increase in demand than the decrease in supply. - #4 Draw a diagram that shows a smaller increase in supply than the increase in demand. -
II. Chapter 4: Questions & Problems: 9 (p122) #9 What is the difference between a price ceiling and a price floor? What effect is the same for both a price ceiling and a price floor?
Working with Numbers and Graphs: 2 (p122) #2 In the preceding diagram, what areas represent consumers’ surplus at the equilibrium price of PE? At PC? (Keep in mind that, at PC, the equilibrium quantity is neither produced nor sold.)
III. Chapter 6: Questions & Problems: 2, 5, 9, 14 (p175-176) #2 For each of the following, identify where demand is elastic, inelastic, perfectly elastic, perfectly inelastic, or unit elastic: a. Price rises by 10 percent, and quantity demanded falls by 2 percent- inelastic b. Price falls by 5 percent, and quantity demanded rises by 4 percent- inelastic c. Price falls by 6 percent, and quantity demanded does not change- perfectly inelastic
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