Econ 226 chapter 3

The demand curve is P​ = 800−9QD. The supply curve is P​ = 400​+ 8QS. At market​ equilibrium, the equilibrium quantity is​ _______.

23.5

The demand curve is P​ = 800−10QD. The supply curve is P​ = 200 ​+ 2QS. At market​ equilibrium, the equilibrium quantity is​ _______.

50.0

The demand curve is P​ = 9009−8QD. The supply curve is P​ = 400 ​+ 2QS. At market​ equilibrium, the equilibrium price is​ _______.

500.00

When consumers become more budget conscious and the price of solvent​ rises, the price of dry cleaning​ _______.

can​ rise, fall, or remain the same depending on the relative size of the decrease in the demand for dry cleaning and the decrease in the supply of dry cleaning

Bottled water and health club memberships are​ _______.

complements

​Low-fat milk and cream are​ _______.

complements in production

A rise in the price of sawdust​ _______.

decreases the supply of plywood

A rise in the price of sawdust​ _________.

increases the supply of logs

Leather boots and leather shoes are​ _______.

substitutes in production for producers

Diet coke and regular coke are​ _______.

substitutes or substitutes in production

The demand curve is P​ = 900−5QD. The supply curve is P​ = 600 ​+ 20QS. At the market​ equilibrium, the equilibrium price is​ _______.

840.00

Choose the statement that explains this price increase.

As the demand for homes​ increases, the demand curve for homes shifts rightward and the quantity of homes supplied increases. This fact illustrates the law of supply.

Home owners would hold off trying to sell because​ _______.

They expect the price of homes will rise in the future

What features of the world market for crude oil make it a competitive​ market? The world market for crude oil is a competitive market because​ _______.

it has many buyers and many sellers and no single buyer or seller can influence the price

The substitution effect influences gasoline purchases because when the price of a gallon of gasoline​ rises, other things remaining the​ same, _______. Consumers​ _______.

its relative price​ rises; look for alternate means of transportation

Rising solvent prices​ _______ the price of dry cleaning and​ ________ the quantity of dry cleaning.

raise; decrease

French fries and baked potatoes are​ _______.

substitutes for consumers and substitutes in production for producers

Hybrids and SUVs are​ _______.

substitutes or substitutes in production

If the price of hangers does rise this​ year, the​ _______.

supply of dry cleaning decreases and some additional dry cleaners will disappear

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 number of Wii games you must give up to get the textbook

The income effect influences gasoline purchases because when the price of gasoline​ rises, other things remaining the​ same, ______. Consumers​ ______.

the price of gasoline rises relative to​ income; cannot afford to buy all the things they previously​ bought, so they buy less gasoline

The law of demand applies to gasoline because when the price of gasoline​ rises, ______.

the quantity demanded decreases

When farmers use the new method of tapping maple trees other things remaining the​ same, ​ _______.

the supply of maple syrup increases because farmers can produce more maple syrup per acre from their current trees