Chapter 3: Q. g - For Critical Thinking (page 67)
Why do you suppose that prices of barbecued brisket have been rising in
many U.S. cities?
Due to excess demand.
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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?
How could laws that ban tips cause a reduction in the quality of the delivery of services?
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.
Understand how the interaction of demand
and supply determines the equilibrium
price and quantity
Discuss the difference between money prices and relative prices
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