Chapter 19

# Khimaira farms sells handcrafted cookie cutters when

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32. Khimaira Farms sells handcrafted cookie cutters. When graphed, the demand schedule for Khimaira Farms brand cookie cutters forms a straight line. If at \$3 per cutter, 500 cookie cutters are demanded, and at \$4 per cutter, 450 cookie cutters are ordered, how many will be ordered at a price of \$6 per cut- ter? a. 350 b. 450 c. 400 d. 333 e. 375 ANS: A With a linear demand curve, the slope of the line will remain constant. In this example, for every \$1 that price increases, sales will decrease by 50 cookie cutters. PTS: 1 REF: 299 OBJ: 19-3 TYPE: App TOP: AACSB Analytic | TB&E Model Pricing 33. Personal Touch produces and markets beaded purses. When graphed, the demand schedule for its purses is a straight line. If one purse costs \$20, 5,000 beaded purses are sold. At \$25, 4,500 purses are sold. How many beaded purses will be sold if the price per purse is increased to \$30?

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PTS: 1 REF: 299 OBJ: 19-3 TYPE: App TOP: AACSB Analytic | TB&E Model Pricing 34. The _____ is the quantity of a product that will be sold in the market at various prices for a specified time period, and _____ is the quantity of a product that will be offered to the market by suppliers at various prices for a specified period. 35. _____ is the quantity of a product that will be offered to the market at various prices for a specified period. PTS: 1 REF: 299 OBJ: 19-3 TYPE: Def TOP: AACSB Reflective Thinking | TB&E Model Pricing 36. When the price of a product is set at a level where demand and supply are the same, _____ has been achieved. a. equilibrium b. stability c. leverage d. symmetry e. status quo ANS: A Price equilibrium is the price at which demand and supply are equal. PTS: 1 REF: 300 OBJ: 19-3 TYPE: Comp TOP: AACSB Reflective Thinking | TB&E Model Pricing
37. At a price of \$654,400 the SSC Ultimate Aero has been ranked as the third most expensive car in the world. The company is only planning to build twenty-five of the current model. If that matches the de- mand for the Ultimate Aero, then a state of _____has been achieved. PTS: 1 REF: 300 OBJ: 19-3 TYPE: Comp TOP: AACSB Reflective Thinking | TB&E Model Pricing

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• Spring '10
• Patterson
• Supply And Demand, AACSB Reflective Thinking, TB&E Model Pricing

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