Macro - Chapter 3 hw
Disequilibrium
Occurs when quantity demanded and quantity supplied are not in balance
Disney decided to launch Disney+ at a price of $6.99 a month. When Disney+ was launched on November 12, 2019, 10 million people signed up on the first day. If the quantity demanded increases by 2 million for every $1 reduction in the subscription price, a. How many initial subscribers would Disney+ have gotten at a price of $8.99? b. This is a movement...
a. 6 million b. along the demand curve
U.S. autoworkers go on strike
supply decreases
Market Quantity Demanded
the sum of all buyers demand at a certain price; same for Quantity supplied
Market Quantity supplied
the sum of the quantities supplied by all sellers at each price
shortage
A situation in which quantity demanded is greater than quantity supplied
surplus
A situation in which quantity supplied is greater than quantity demanded
The U.S. economy falls into recession
Demand decreases
The price of gasoline increase
Demand decreases
Which curve shifts and in which direction when the following events occur in the iPhone market? Samsung comes out with a really awesome phone
Demand decreases
Which curve shifts and in which direction when the following events occur in the iPhone market? The economy is in a recession
Demand decreases
Imported cares become more expensive
Demand increases
complementary goods
Goods that are commonly used with other goods
substitute goods
Products or services that can be used in place of each other.
A right ward shift in demand curve...
Pushes prices up, and increases quantity bought and sold
Which curve shifts and in which direction when the following events occur in the iPhone market? Apple moves its manufacturing facilities to locations that have lower wages
Supply increases
Initial Quantity Demanded
The quantity demanded initially by consumers
movements along the supply curve
a change in the quantity supplied of a good arising from a change in the good's price
Disney decided to launch Disney+ at a price of $6.99 a month. When Disney+ was launched on November 12, 2019, 10 million people signed up on the first day. If Netflix loses 4 million subscribers for every $1 reduction in the Disney+ subscription price, a. How many more subscribers would Netflix have lost if Disney+ were initially priced at $4.99 a month? b. This is a...
a. 8 million subscribers b. This is a shift of the demand curve
Suppose Disney+ changes its monthly subscription price from $7 to $9 per month. Graphically show the impact of this price change in the following markets: a. Popcorn, pizza, and other movie snacks b. Netflix
a. Shift in demand to the left <-- b. shift in demand to the right
movements along the demand curve
changes in the quantity demanded of a good that result from a change in that good's price
A leftward shit in the supply curve...
pushes prices up, and decreases quantity bought and sold
equilibrium price
the price that balances quantity supplied and quantity demanded
