Chapter 3: Q. e - For Critical Thinking (page 64)
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?
Fall in supply.
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In Fig 3-2, the current position of the demand curve is D1, and the price of a portable power bank is $3. If there is an increase in the price of tablet devices that are complements to portable power banks, will the demand curve shift to D2 or to D3? What is the change in the amount of portable power banks demanded?
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?
Has the market supply curve in China shifted rightward or leftward?Explain
What happens to ticket scalpers who are still holding tickets after an
event has started?
In the market for portable power banks(a normal good), explain whether the following events would cause an increase or a decrease in demand or an increase or decrease in the quantity demanded. Also, explain what happens to the equilibrium quantity and the market-clearing price.
a. There is an increase in the price of carry cases for portable power banks.
b. There is a decrease in the price of devices used to charge portable power banks.
c. There is an increase in the number of consumers of portable power banks.
d. A booming economy increases the income of the typical buyer of portable power banks.
e. Consumers of portable power banks anticipate that the price of this good will decline in the future.
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