Chapter 3: Q. 3.3 (page 49)
Distinguish between changes in demand and changes in quantity demanded
Change in demand refers to change in the demand function, whereas change in quantity demanded simply refers to at what price, how much quantity is demanded.
Over 30 million students worldwide already upgrade their learning with Vaia!
All the tools & learning materials you need for study success - in one app.
Get started for free
In Fig 3-4, the current position of the demand curve is D1, and the price of a portable power bank, which is a normal good, is $3. If there is an increase in consumer incomes, will the demand curve shift to D2 or to D3? What is the change in the amount of portable power banks demanded?
How could laws that ban tips causeareduction in the quality of the delivery
of services?
Suppose that inalater market period,the quantities
supplied in the table in Problem 3-1 are unchanged.
The amount demanded,however,has increased by 30
million at each price.Construct the resulting demand
curve in the illustration you made for Problem 3-1.Is
this an increase or a decrease in demand? What are
the new equilibrium quantity and the new market
price?Give two examples of changes in ceteris paribus
conditions that might cause suchachange.
Consider the market for cable-based Internet access
service,which isanormal good.Explain whether
the following events would cause an increase ora
decrease in demand or an increase oradecrease in
the quantity demanded.
a.Firms providing wireless(an alternative to cable)
Internet access services reduce their prices.
b.Firms providing cable-based Internet access
services reduce their prices.
e.There isadecrease in the incomes earned by con
sumers of cable-based Internet access services.
d.Consumers'tastes shift away from using wire
less Internet access in favor of cable-based
Internet access services.
How could laws that ban tips cause a reduction in the quality of the delivery of services?
What do you think about this solution?
We value your feedback to improve our textbook solutions.
