Chapter 3: Q. b - For Critical Thinking (page 52)
How could laws that ban tips cause a reduction in the quality of the delivery of services?
Tips act as incentive for better delivery, hence the quality of delivery may fall.
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Suppose that in a recent market period,the following relationship existed between the price of
tablet devices and the quantity supplied and quantity demanded.
Graph the supply and demand curves for tablet
devices using the information in the table.What are
the equilibrium price and quantity?If the industry
price is$340,is there a shortage or surplus of tablet
devices?How much is the shortage or surplus?
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.
What do you suppose has happened to the positions of the supply curves in the markets for commodities such as almonds,apples,cotton,oranges,grapes,lemons,rice,and walnuts?
In fig 3-7, what are the effects of a price decrease from \(5 per portable power bank to \)3 per portable power bank on the quantities supplied by supplier 1 and by supplier 2 individually and combined?
In fig 3-7, what are the effects of a price increase from \(2 per portable power bank to \)4 per portable power bank on the quantities supplied by supplier 1 and by supplier 2 individually and combined?
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