Chapter 3: Q. 12- Problems (page 73)
If the price of flash memory chips used in manufacturing smartphones decreases, what will happen in the market for smartphones? How will the equilibrium price and equilibrium quantity of smartphones change?
Supply would increase.
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What direction might the supply of breakfast cereals have shifted to help explain why the market prices of these cereals have not changed very much during the past few years?
How could laws that ban tips cause a reduction in the quality of the delivery of services?
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 cost of inputs that suppliers utilize to produce portable power banks decreases, will the supply curve shift to S2 or to S3? What is the change in the amount of portable power banks supplied?
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.
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.
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