econ 251 hw 3

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What would happen to the price of orange juice if citrus greening wiped out the Florida orange​ crop? If citrus greening wipes out the Florida orange​ crop, the price of orange juice would​ _______.

rise

Demand and supply in the market for 9 volt batteries are given by the equations. Qd​= −2P ​+ 139 Qs= P−5 What is the marginal cost of producing the 5th​ battery?

$10

Demand and supply equations in the market for hand sanitizer are given below. Qd= 10−1/2P Qs= 2P What is the marginal benefit of the 4th bottle of hand​ sanitizer?

$12

What is the marginal cost of the 4th bottle of hand​ sanitizer

$2

Demand and supply in the market for insulated cups are given by the following equations. Qd= 1500−20P Qs= 30P−300 What is the marginal cost producing the 300th insulated​ cups?

$20

The demand and supply equations in the avocado market are given below. ​(Qd is the quantity​ demanded, Qs is the quantity​ supplied, and P is the​ price.) Qd=20−2P Qs=8P The equilibrium price of an avocado is​ _________, and the equilibrium quantity of avocadoes is​ ________.

$2; 16

Use the following demand and supply functions for the market of long sleeve​ shirts: Qd​ = 40−​(1/4)P Qs​ = ​(1/2)P−5 What is the marginal cost of producing the 10th long sleeve​ shirt?

$30

The two equations set up the supply and demand for DVD players. ​Supply: Qs​ = 10P−400 ​Demand: Qd​ = ​2,000−20P What is the marginal cost of the 100th DVD​ player?

$50

At what point is demand unit elastic in the market for insulated​ cups?

(750, $37.50)

At which of the following points is the price elasticity of demand strictly greater than​ one?

15, $100

What is the equilibrium​ (Q*, P*) in the market for long sleeve​ shirts?

25, $60

At which of the following points in the market for avocados is demand​ elastic

6, $7

At what point does the market for insulated cups reach​ equilibrium

780, $36

The table gives the demand and supply schedules for batteries. Suppose that demand increases by 50 batteries a day and supply decreases by 100 batteries a day. What is the new equilibrium price of a battery and what is the new equilibrium quantity of​ batteries?

The new equilibrium price is ​$2 per battery. The new equilibrium quantity is 650 batteries per day.

On​ Mother's Day, the demand for roses increases by 160 roses. Rose sellers offer for sale the normal quantity plus the roses held back last weekend. What is the price of a rose on​ Mother's Day?

The price of a rose on​ Mother's Day is ​$9

Rose sellers know that​ Mother's Day is next weekend and they expect the price to be higher next​ weekend, so this week they withhold 60 roses from the market. What is the price of a rose this​ weekend?

The price of a rose this weekend is ​$8

Would you classify frozen concentrated orange juice as a normal good or an inferior​ good? Why? Frozen concentrated orange juice is​ _______.

a normal good if demand increases when income increases

The graph illustrates the market for tea. The market equilibrium is at point A. After one or more​ changes, the market equilibrium moves to point B. You predict that the market for tea was most likely influenced by​ _______.

a rise in household income and a rise in the number of plantations

the figure shows the demand for pens. Calculate the elasticity of demand when the price rises from ​$2 to ​$4 a pen. Over what price range is the demand for pens​ elastic? The elasticity of demand when the price rises from ​$2 to ​$4 a pen is 0.33 The demand for pens is elastic at​ ______

all prices greater than​ $6 a pen

If demand and supply change in the same​ direction, we​ _____ the direction of change of the equilibrium quantity and we​ _____ the direction of change of the equilibrium price.

can​ predict; cannot predict

Rain spoils the strawberry​ crop, the price of strawberries rises from ​$6 to ​$8 a​ box, and the quantity demanded decreases from 600 to 200 boxes a week. Calculate the price elasticity of demand over this price range. Describe the demand for strawberries. Over the price range of ​$6 to ​$8​, the price elasticity of demand is 3.50 Over this price​ range, the demand for strawberries is​ ______.

elastic

a decrease in the price of soap​, a complement in production of palm oil​, will​ ______ the equilibrium price of palm oil and​ ______ the equilibrium quantity of palm oil.

increase; decrease

The shorter the time that has elapsed since a price​ change, the more​ _______.

inelastic is demand

Over what range of prices does a shortage​ arise? What happens to the price when there is a​ shortage? The graph shows the demand curve and the supply curve in the market for bicycles. Draw a horizontal line at a price at which there is a shortage of bicycles. Label it Shortage. When a shortage​ arises, the price​ ______ to its​ equilibrium, which​ _______.

rises; decreases the quantity demanded and increases the quantity supplied

The graph shows the demand for and supply of potato chips. Draw a curve that shows the effect of a new dip that increases the quantity of potato chips that people want to buy by 30 million bags per week at each price. Label the curve 1. Draw a curve that shows the effect of a virus that destroys potato crops and decreases the quantity of potato chips produced by 40 million bags a week at each price. Label the curve 2. Draw a point at the new equilibrium price and quantity following both events When the increase in demand is greater than the decrease in​ supply, the equilibrium price​ _____ and the equilibrium quantity​ _____.

rises; increases;

A decrease in the demand for sports cars together with an increase in the supply of sports cars brings a​______ of sports cars at the original price and a​______ in their price.

surplus; fall

What is the market​ equilibrium? At the market​ equilibrium, the price of a rose is​ ______ and ​ _____ roses per week are bought and sold.

​$7; 100

What is equilibrium in the market for​ batteries?

​(43, $48)

If the demand for batteries​ rises, which of the following could represent the new​ equilibrium?

​(47, $52)

At what point in the market for hand sanitizer is demand unit​ elastic?

​(5, $10)

When the price of DVD players rises from​ $70 to​ 74, the price elasticity of demand is​ _______, implying that demand is​ __________ in this price range.

​18/7 =​ 2.57; elastic

The equilibrium quantity of hand sanitizer is​ ___________, and the equilibrium price is​ ___________.

​8, $4

The fewer the substitutes for a good or​ service, the more​ ______ is the demand for it. The smaller the proportion of income spent on a​ good, the more​ ______ is the demand for it.

​inelastic; inelastic

When the increase in demand is less than the decrease in​ supply, the equilibrium price​ _____ and the equilibrium quantity​ _____.

​rises; decreases

When the increase in demand equals the decrease in​ supply, the equilibrium price​ _____ and the equilibrium quantity​ _____.

​rises; remains unchanged

1. If the price of a rose is​ $6, describe the situation in the rose market. Explain how the price adjusts. If the price of a rose is​ $6, there is a​ _____ of roses and the price of a​ rose_____.

​shortage; rises

If the price of a rose is​ $9, describe the situation in the rose market. Explain how the price adjusts. If the price of a rose is​ $9, there is a​ _____ of roses and the price of a rose​ _____.

​surplus; falls


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