ECON CH 4 HW
"As more people buy bicycles, the demand for bicycle helmets will increase and the price of a bicycle helmet will rise. The rise in the price of a bicycle helmet will increase the supply of bicycle helmets." This statement is _______ because ______
false; as the price of a bicycle helmet rises, the supply of bicycle helmets does not increase
Miles graduated from college and his income increases by $35,000. Nothing else changes. Miles decreases the quantity of hot dogs and french fries that he buys and increases the quantity of stuffed olives that he buys. For Miles, ______
hot dogs and french fries are inferior goods
For consumers, sports cars and gasoline are complements. If the price of a sports car decreases, the demand for gasoline will ____
increase, and the demand curve for gasoline will shift rightward
If the price is $1.70 a carton, the quantity supplied ____ the quantity demanded and _____ of milk exists
is less than; a shortage
If as the price of a sports car decreases, the quantity of sedans that firms plan to sell increases, then sports cars and sedans are ______
substitutes in production
Consider the market for coffee. Suppose the price of a donut falls. Explain the effect of this event on the quantity of coffee demanded and on the demand for coffee.
the demand for coffee increases
When motorists increase their driving in the summer months, _____ and the price of a gallon of gasoline _____
the demand for gasoline increases; rises
As the market moves to equilibrium
the price of a carton rises, the quantity demanded decreases, and the quantity supplied increases
In market equilibrium, at the equilibrium price and equilibrium quantity _______
the quantity demanded equals the quantity supplied and equals the quantity bought and sold
If the price of a smartphone rises, with all other influences on buying plans remaining the same, _______
the quantity of smartphones demanded decreases
Demand is _____, when all other influences on buying plans remain the same
the relationship between the quantity demanded of a good and the price of the good
Supply is ______, when all other influences on buying plans remains the same
the relationship between the quantity supplied of a good and the price of the good
Consider the market in which sporting goods producers operate. Suppose the price of a football rises. Explain how this event will change the quantity of basketballs supplied and the supply of basketballs today.
the supply of basketballs decreases
When refineries shut down, ________ and the price of a gallon of gasoline ______
the supply of gasoline decreases; rises
The table sows the demand and supply schedules for chocolate bars. What is the market equilibrium?
The equilibrium price is $1.80 a chocolate bar. The equilibrium quantity is 450 chocolate bars a day.
Consider the U.S. market for ice skates. Suppose the price of a pair of ice skates rises. Explain the effect of this event on the quantity of ice skates demanded and on the demand for ice skates.
The quantity of ice skates demanded decreases and the demand for ice skates is unchanged
If, to avoid a boycott, grocery stores did not raise the price of pasta, ____ would arise and the price would ____
a shortage of pasts; eventually rise
