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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Distinguish between changes in supply and changes in quantity supplied
In Fig 3-2, 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?
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?
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?
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?
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