Macro - Chapter 3 hw

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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


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