Chapter 2: Applied Problems
1. Suppose you are the manager of a California winery. How would you expect the following events
to affect the price you receive for a bottle of wine?
a. The price of comparable French wines decreases.
b. One hundred new wineri
After reading Chapter 5 and working the problems in this chapter of your Workbook, you
should be able to:
Explain the concept of utility and the basic assumptions underlying consumer
Explain the equilibrium condition for a
After reading Chapter 6 and working the problems for Chapter 6 in the textbook and in
this Workbook, you should be able to:
Explain how price elasticity of demand (E ) is used to measure the responsiveness
or sensitivity of consumers t