MACRO hw#1
The new equilibrium price is ____a chocolate bar and the new equilibrium quantity is _________ chocolate bars a day.
1.25; 400 (top of table)
A smartphone and a text message are ______. A text message and an email are ______.
C:S
Pizza and sausage are ______. Wheat and corn are ______.
C:S
Pasta and pizza are ______. A video game and a laptop are ______.
S:C
Coal and oil are ______. A skateboard and roller blades are ______.
S:S
A demand curve that illustrates the law of demand ______.
a downward sloping
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
JohnnyJohnny graduates from college anD his income increases by 30,000 a year. Nothing else changes. Johnny decreases the quantity of ramen noodles and chocolate chip cookies that he buys and increases the quantity of bottled water that he buys. For Johnny, _______.
bottled water is a normal good
Bottled water and health club memberships are _______.
complements
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.
decrease; increase
The price ______ until the ______ is eliminated.
falls: surplus
French fries and baked potatoes are _______.
substitues or substitues in production
The change in the price of a printer illustrates the law of demand in action.
true
The opportunity cost of a pack of granola bars is _______.
3.00 pounds of bananas, which is the relative price of a pack of granola bars
If the price of a printer falls from $80 to $40, while all other influences on buying plans are unchanged, the quantity of printers demanded changes from _____ to _____.
4 million; 12 million
Explain why a relative price is an opportunity cost. The money price of a pound of bananas is $0.20 and the money price of a half gallon of milk is $0.80 The opportunity cost of a half gallon of milk is _______. A. $0.200.20, the money price of a pound of bananas a pound of bananas B. 0.250.25 half gallons of milk half gallons of milk C. 4.004.00 pounds of bananas pounds of bananas, which is the relative price of a half gallon of milk a half gallon of milk Your answer is correct. D. $0.800.80, the price of a half gallon of milk a half gallon of milk The relative price of a half gallon of milk a half gallon of milk is an opportunity cost because ______.
4.00 pounds of bananas, which is the relative price of a half gallon of milk
The table gives the demand and supply schedules for milkshakesmilkshakes. What is the equilibrium price of a milkshake and the equilibrium quantity of milkshakes per day? The equilibrium quantity of milkshakes is _____a day. The equilibrium price is ____ a milkshake.
90: $5
The table gives the demand and supply schedules for hamburgershamburgers. What is the equilibrium price of a hamburger and the equilibrium quantity of hamburgers per day?
The equilibrium quantity of hamburgers is 75 a day. The equilibrium price is $2 a hamburger.
As the market moves toward the equilibrium price, the quantity demanded _______ and the quantity supplied _______.
increases; decreases
Event C ______ the ______ XBox One games.
increases; demand for
The table shows the demand schedule and supply schedule in the market for french fries. Suppose the price of french fries is $4.00 a serving. Consider how the market reaches its equilibrium price. There is ______ and the price of french fries will ______.
a surplus of french fries; fall to the equilibrium price
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
AdrienneAdrienne graduates from college and her income increases by $30,000 a year. Nothing else changes. AdrienneAdrienne decreases the quantity of donuts and french fries that she buys and increases the quantity of coffee that she buys. For Adrienne, _______.
coffee is a normal good
Low-fat milk and cream are _______.
complements in production for a dairy and substitutes for consumers
The figure shows the supply curve of printers. If the price of a printer falls from $80 to $20, while all other influences on selling plans are unchanged, the quantity of printers supplied _______ .
decreases from 24 million to 6 million
An increase in the price of a DVD player _______.
decreases the quantity of DVD players demanded and results in a movement up along the demand curve for a DVD player
When the increase in demand is less than the decrease in supply, the equilibrium price _____ and the equilibrium quantity _____.
rises; decreases
An increase in the price of pasta _______.
decreases the quantity of pasta demanded and results in a movement up along the demand curve for pasta
The price of a wireless plan rises. What is the effect on the price and quantity of smartphones? The equilibrium quantity of smartphones _______ and the equilibrium price _______.
decreases: falls
To reach equilibrium, the quantity supplied ______, the quantity demanded ______.
decreases: increases
Event B ______ the ______ XBox One games.
decreases; demand for
A fall in the price of a smartphone ______ the quantity supplied and ______ supply.
decreases; does not change
Event D ______ the ______ XBox One games.
decreases; quantity demanded of
General Motors cut its fourth-quarter production schedule by 10 percent because Ford Motor, Chrysler, and Toyota sales declined in August. Source: The New York Times, September 5, 2007 Explain whether this news clip illustrates a change in the supply of cars or a change in the quantity supplied of cars. This news clip illustrates a decrease in ______ and ______ in the market for cars.
demand: a decrease in the quantity demanded
t the initial equilibrium price, there is a surplus of chocolate bars. The price of a chocolate bar _____ and the quantity of chocolate bars demanded _____ as the market moves to its new equilibrium.
falls; increases
Complete the sentence. The market for tomatoes is a competitive market _______.
if many people buy and many firms sell tomatoes, so no single buyer or seller can influence the price
As the average income in China continues to increase, explain how the following will change: a. The demand for beef b. The demand for rice As the average income in China continues to increase, we would expect the demand for beef to _______ and the demand for rice to _______.
increase if beef is a normal good; decrease if rice is an inferior good
Sports cars and gasoline are complements. If the price of a sports car decreases, how does the demand for gasoline change? If the price of a sports car decreases, the demand for gasoline will _______.
increase, and the demand curve for the gasoline will shift rightward
If the price of a printer falls from $80 to $40, while all other influences on buying plans are unchanged, the quantity of printers demanded _______.
increases
The events are A.The price of an Xbox One falls B. The prices of a PS 4 and a Wii Upper U fall C. Consumers' incomes increase D. Programmers who write code for XBox One games become more costly to hire Event A ______ the ______ XBox One games.
increases; demand for
What happens to the quantity of smartphones supplied and the supply of smartphones if the price of a smartphone risesrises? Draw a supply curve of smartphones. Label it. Use any prices and quantities you wish but make your supply curve obey the law of supply. Then draw an arrow to indicate what happens to the quantity of smartphones supplied when the price of a smartphone rises. A rise in the price of a smartphone ______ the quantity supplied and ______ supply.
increases; does not change
If the price of a taco falls, a ______ the demand curve occurs. If any factor that influences buying plans other than the price changes, then a ______ the demand curve occurs.
movement down along; shift of
The graph shows the supply curve of sweaters. Draw a new supply curve that shows what happens in the market for sweaters if the expected future price the expected future price of a sweater rises of a sweater rises but all other influences on selling plans remain the same. Label the curve. Use any prices and quantities you wish, but make your supply curve obey the law of supply.
on desktop
The graph shows the market for gum. A fire destroys some factories that produce gum and the quantity of gum supplied decreases by 40 million packs a week at each price. Draw a curve to show the effect of this event. Label it 1. Draw a point to show the new equilibrium price and equilibrium quantity. Label it E1. At the same time the fire occurs, there is an increase in the teenage population, which increases the quantity of gum demanded by 40 million packs a week at each price. Draw a curve to show the effect of this event Label it 2. Draw a point to show the new equilibrium price and equilibrium quantity. Label it E2.
picture
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 2020 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 4040 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
When the increase in demand is greater than the decrease in supply, the equilibrium price _____ and the equilibrium quantity _____.
rises; increases
When the increase in demand equals the decrease in supply, the equilibrium price _____ and the equilibrium quantity _____.
rises; remains unchanged
Think of examples of goods whose relative price has risen or fallen by a large amount. In 2007, the price of a gallon of gas was $2.59. In 2017, the price of a gallon of gas was $2.32 In 2007, the price of a dozen eggs was $1.63. In 2017, the price of a dozen eggs was $1.40. Between 2007 and 2017, the relative price of a gallon of gas with respect to a dozen eggs _______ and the relative price of a dozen eggs with respect to a gallon of gas _______.
rose; fell
Choose the correct statements about competitive markets. 1. Upper A competitive market has many sellers. 2. Upper A competitive market must be a global market. 3. All competitive markets are physical places where buyers and sellers meet. 4. Upper A single buyer in a competitive market cannot influence the price.
statements 1 and 4 are correct
Diet coke and regular coke are _______.
substitutes for consumers and substitutes in production for producers
If as the price of an SUV decreases, the quantity of truckstrucks that firms plan to sell increases, then SUVsSUVs and truckstrucks are _______.
substitutes in production
Which of the following goods are likely substitutes and which are likely complements? Coal and oil are ______. A skateboard and roller blades are ______.
substitutes; substitues
Now suppose that the price is $ 8$8 a milkshake. Describe the situation in the milkshake market and explain how the price adjusts. If the price is $ 8$8 a milkshake, there is a ______ of milkshakes, so the price of a milkshake ______.
surplus; falls
What does the demand curve tell us about the price that consumers are willing to pay? A demand curve _______.
tells us the maximum that someone is willing to pay for an additional unit of a good or service
When an event occurs that changes the demand for coffee makers, _______ if demand increases and ______ if demand decreases.
the demand curve shifts rightward; the demand curve shifts leftward
Taking a smartphone to the gym when you work out becomes more popular. What is the result of this event? As a result, _______.
the demand for smartphones increases
The money price of a textbook is $90 and the money price of the Wii game Super Mario Galaxy is $45. What is the opportunity cost of a textbook in terms of the Wii game? What is the relative price of the Wii game in terms of textbooks? The opportunity cost of a textbook in terms of Wii games is ______. The relative price of a Wii game in terms of textbooks is 5 textbooks.
the number of Wii games you must give up to get the textbook
Why is the price at which the quantity demanded equals the quantity supplied the equilibrium price?
the plans of producers and consumers are coordinated and there is no influence on the price to change
Why does demand not change when the price of a good changes with no change in the other influences on buying plans? Consider the demand for DVD players. The demand for DVD players does not change when a change in _______ occurs.
the price of a DVD player
Why does demand not change when the price of a good changes with no change in the other influences on buying plans? Consider the demand for pasta. The demand for pasta does not change when a change in _______ occurs.
the price of pasta
The relative price of a pack of granola bars is an opportunity cost because ______.
the relative price tells us how many pounds of bananas we must give up to get a pack of granola bars
the relative price tells us how many pounds of bananas pounds of bananas we must give up to get a half gallon of milk a half gallon of milk Your answer is correct. B. it is constant C. the relative price tells us how many half gallons of milk half gallons of milk we must give up to get a pound of bananas a pound of bananas D. it is expressed as a money price
the relative price tells us how many pounds of bananas we must give up to get a half gallon of milk
The graph illustrates the market for jackets. Suppose the current price of a jacket is $1010 and 11 million jackets a year are bought. What do you predict will happen to the price of a jacket?
the shortage of jackets forces the price to go up
The graph illustrates the market for electric blankets. Suppose the current price of an electric blanket is $90 and 1 million electric blankets a year are bought. What do you predict will happen to the price of an electric blanket?
the surplus of electric blankets forces the price down
All of the following are consequences of scarcity faced by people in the United States except deciding _______.
whether a tomato is a fruit or a vegetable
The law of demand states that other things remaining the same, the _______ the price of a good, the _______.
higher; smaller is the quantity demanded
When a shortage arises, the price ______ to its equilibrium, which _______.
rises; decreases the quantity demanded and increases the quantity supplied