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c. shortage; price will certainly climb. d. shortage; price will certainly autumn. e. nopoint given that the market is in equilibrium.
2. Which of the adhering to can result in an increase in the supply for excellent X? a. a decrease in the number of sellers of good X. b. a boost in the price of inputs offered to make excellent X. c. an increase in consumers" income, assuming great X is a normal. d. an improvement in technology supplied in production of good X. e. none of the above
3. An boost in the price of power will: a. boost the demand also for kerosene heaters. b. rise the demand for light bulbs. c. rise the demand also for stereos. d. increase the demand also for TVs.
4. Which of the following events will certainly cause an increase in the industry demand for Guinness (a brand of beer)? a. A decrease in the price of Guinness. b. An increase in the price of Heineken (another brand of beer). c. An rise in the price of Planters peanuts (a complementary good). d. An increase in earnings, if Guinness is an inferior excellent. e. Namong the over will certainly reason a boost in demand also.
a. What is the equilibrium price of hot dogs? What renders you think so? According to the definition, the equilibrium price is the price at which quantity gave amounts to quantity demanded. From the table we have the right to view that at $1.60, Qs = Qd = 2,400. Therefore $1.60 is the equilibrium price.
b. If the organizers of the sporting event decide to collection the price at 1.80, how many type of hot dogs will be sold? At $1.80, 4,800 hot dogs will be available for sale, however just 1,600 will certainly be demanded. Thus, just 1,600 hot dogs will certainly be offered.
2. True or False? Explain. In economics, "normal good" is the name for a good a normal individual have the right to afford.
False. The expression "normal good" suggests that when a person"s revenue boosts, the consumption of that excellent also boosts.
3. a. State the Law of Demand also.
As the price of an excellent rises, all various other things being equal, the amount demanded of that good falls.
b. Over the last two decades, tuition fees at Purdue University have actually enhanced by 50%. At the same time, the variety of students enrolled has increased from 22,000 to over 35,000. Does this example demonstrate that the Law of Demand also is false? Explain why or why not. Use graphs.
No, this reality does not refute the Law of Demand also. The Law of Demand tells us what will certainly occur to quantity demanded if price is the only factor that alters. In the example offered, many kind of points have more than likely adjusted over 20 years, average household revenue and the reputation of the college being simply 2 of them. As an outcome, the demand for the solutions gave by that university has shifted. See graph.
4. The full demand for wwarm and also the full supply of wheat per month in the Kansas City grain sector are as follows:
Thousands of bushels demanded
Price per bushel, $
Thousands of bushels supplied
Surplus (+) or shortage (--)
a. Market equilibrium occurs at the suggest wbelow industry clears, that is, where amount provided is equal to amount demanded. In various other words, equilibrium price is the price at which tright here exists neither surplus nor shortage. Looking at the entries in the last column (in bold), we have the right to check out the equilibrium price is $4. As such, the equilibrium amount is 75,000 bushels.
b. For your individual job-related.
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c. At $3.40, tright here would certainly be a 13,000 bushels shortage of wwarm. The price will not continue to be at that level considering that it will be in the sellers" finest interest to raise their prices. At $4.90, sellers will certainly supply 21,000 bushels more than buyers would demand, hence developing a excess. In order to get rid of the surplus, sellers would have to decrease their price.
d. The statement is false. A excess indicates that at a offered price, amount supplied is higher than quantity demanded. Trying to get rid of the surplus, sellers will certainly decrease their prices. Because of this, surpluses drive prices down, not up. Shortages, on the various other hand also, give sellers the opportunity to raise prices, for this reason "shortperiods drive prices up".
e. A ceiling at $3.70 establimelted by the government (which more than likely tries to proccasion the price from being what it perceives as "too high") would not permit the price to move in the direction of the equilibrium. As a result, a irreversible shortage of wwarmth will certainly emerge. Buyers will demand 7000 even more bushels of wwarmth than tright here is accessible.