If the price of smartphones was to increase, then
Incorrect the demand for smartphone apps would increase.
the quantity of smartphone apps demanded would increase.
the demand for smartphone apps would increase.
the quantity of sm
Chapter 2: The Basics ofSupply and Demand
c. Adecreaae in average income leveh.
Assn me that butter is a normal good. A decrease in the average income level will cause
the demand curve or butter to shift from D] to l'.'l1 This will result i
0 out of 5 points
In order to be binding, a price floor
Incorrect must lie below the free-market equilibrium price.
must lie below the free-market equilibrium price.
must be high enough for firms to earn a profit.
Given: QD = 160 2(Price); QS = Price - 20;
Complete the graph at the top of the page using the QD and QS equations given above by filling in the .
_ / 16 Points
Market for Purple People Eaters
Use the above graph to answer the following
QD = 80 (PRICE)
QS = (PRICE) 10
Complete the graph attached.
1) Fill in cfw_A, cfw_B, cfw_C and cfw_D [Quantity (in units), Demand, Supply and Price (in currency)]
2) Find the price where quantity demanded is equal to zero cfw_E (set QD = 0)
Econ 601 Fall 2016
Problem Set 1: Preferences, Utility, and Demand
Due date: September 14, Wednesday by 3pm (box outside Soc. Sci. 205)
1. Prove or disprove the following statements.
(a) (10) In diving, a judge prefers a dive with greater di culty and bet