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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Identify which of the following would generate an increase in the market demand for tablet devices, which are normal goods.
a. A decrease in the incomes of consumers of tablet devices
b. An increase in the price of ultrathin computers, which are substitutes
c. An increase in the price of online apps,which are complements
d. An increase in the number of consumers in the market for tablet devices
Consider the market for paperbound economics textbooks. Explain whether the following events would cause an increase or a decrease in supply or an increase or a decrease in the quantity supplied.
a. The market price of paper increases.
b. The market price of economics textbooks increases.
c. The number of publishers of economics textbooks increases.
d. Publishers expect that the market price of economics textbooks will increase next month.
In Fig 3-9, the current position of the supply curve is S1, and the price of a portable power bank is $3. If the suppliers anticipate a higher price of portable power banks in the future, will the supply curve shift to S2 or to S3? What is the change in the amount of portable power banks supplied?
Identify which of the following would generate a decrease in the market demand fore-book readers, which are a normal good.
a. An increase in the price of downloadable apps utilized to enhance the thee-book reading experience, which are complements.
b. An increase in the number of consumers in the market fore-book readers.
c. A decrease in the price of tablet devices, which are substitutes.
d. Areduction in the incomes of consumers of e-book readers.
For each of the following shifts in the demand curve and associated price change of complement or substitute item, explain whether the price of the complement or substitute must have increased or decreased.
a.Arise in the demand for a dashboard global positioning-system device follows a change in the price of automobiles, which are complements.
b.A fall in the demand fore-book readers follows a change in the price of e-books, which are complements.
c.Arise in the demand for tablet devices follows a change in the price of ultrathin laptop computers, which are substitutes.
d.A fall in the demand for physical books follows a change in the price of e-books, which are substitutes.
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