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
