Chapter 3: Q. 1 - Critical Thinking Questions (page 69)
What has been the direction of the shift in the demand for breakfast cereals?
Left.
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Why do you suppose that prices of barbecued brisket have been rising in
many U.S. cities?
Consider the following diagram of a market for one-bedroom rental apartments in a college community.
a. At a rental rate of \(1,000 per month, is there an excess quantity supplied, or is there an excess quantity demanded? What is the amount of the excess quantity supplied or demanded?
b.If the present rental rate of one-bedroom apartments is\)1,000 per month, through what mechanism will the rental rate adjust to the equilibrium rental rate of\(800?
c.At a rental rate of\)600 per month, is there an excess quantity supplied, or is there an excess quantity demanded? What is the amount of the excess quantity supplied or demanded?
d.If the present rental rate of one-bedroom apartments is \(600 per month, through what mechanism will the rental rate adjust to the equilibrium rental rate of\)800?
Distinguish between changes in supply and changes in quantity supplied
Understand how the interaction of demand
and supply determines the equilibrium
price and quantity
What are the effects of a price decrease from \(4 per portable power bank to \)2 per portable power bank on the quantities of portable power banks demanded by buyer 1 and by buyer 2 individually and combined?
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