EBK PRINCIPLES OF MACROECONOMICS
7th Edition
ISBN: 9781337342155
Author: Mankiw
Publisher: CENGAGE LEARNING - CONSIGNMENT
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Question
Chapter 4, Problem 3QCMC
To determine
Change in price of substitute and its effect on the demand curve.
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Movie tickets and DVDs are substitutes. If the priceof DVDs increases, what happens in the market formovie tickets?a. The supply curve shifts to the left.b. The supply curve shifts to the right.c. The demand curve shifts to the left.d. The demand curve shifts to the right.
Consider the market for gas-guzzling cars, if the price of gasoline falls. Graph and and answer the following:
Change in Demand
a. Increase
b. Decrease
c. Did not change
d. indeterminate
Change in supply
a. Increase
b. Decrease
c. Did not change
d. indeterminate
a. A change in the price of bicycles will lead to a shift of the demand curve for bicycles. T F b. A change in the price of automobiles will lead to a shift of the demand curve for motorcycles We call this shift a change in demandT F A change in demand is equivalent to a movement along a given demand curve. T F d. When price of a good decreases, the quantity demanded increases. TF
Chapter 4 Solutions
EBK PRINCIPLES OF MACROECONOMICS
Ch. 4.1 - Prob. 1QQCh. 4.2 - Prob. 2QQCh. 4.3 - Prob. 3QQCh. 4.4 - Prob. 4QQCh. 4 - Prob. 1QRCh. 4 - Prob. 2QRCh. 4 - Prob. 3QRCh. 4 - Prob. 4QRCh. 4 - Prob. 5QRCh. 4 - Prob. 6QR
Ch. 4 - Prob. 7QRCh. 4 - Prob. 8QRCh. 4 - Prob. 9QRCh. 4 - Prob. 1QCMCCh. 4 - Prob. 2QCMCCh. 4 - Prob. 3QCMCCh. 4 - Prob. 4QCMCCh. 4 - Prob. 5QCMCCh. 4 - Prob. 6QCMCCh. 4 - Prob. 1PACh. 4 - Prob. 2PACh. 4 - Consider the market for minivans. For each of the...Ch. 4 - Prob. 4PACh. 4 - Prob. 5PACh. 4 - Prob. 6PACh. 4 - Prob. 7PACh. 4 - Prob. 8PACh. 4 - Prob. 9PACh. 4 - Prob. 10PACh. 4 - Prob. 11PA
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- Many changes are affecting the market for oil. Predict how each of the following events will affect the equilibrium price and quantity in the market for oil. In each case, state how the event will affect the supply and demand diagram. Create a sketch of the diagram if necessary. Cars are becoming more fuel efficient, and therefore get more miles to the gallon. The winter is exceptionally cold. A major discovery of new oil is made off the coast of Norway. The economies of some major oil-using nations, like Japan, slow down. A war in the Middle East disrupts oil-pumping schedules. Landlords install additional insulation in buildings. The price of solar energy falls dramatically. Chemical companies invent a new, popular kind of plastic made from oil.arrow_forwardSuppose there is an advance in the technology of tire production, in the market for tires a. Demand decreases, and the supply of tires increases. b. Demand increases, and the supply of tires decreases. c. Demand curve is unaffected, and the supply of tires increases. d. Supply curve is unaffected, and the demand for tires increases.arrow_forwardConsider the markets for film streaming services, TV screens, and tickets at movie theaters. a. For each pair, identify whether they are complements or substitutes: Film streaming and TV screens Film streaming and movie tickets TV screens and movie tickets b. Suppose a technological advance reduces the cost of manufacturing TV screens. Draw a diagram to show what happens in the market for TV screens. c. Draw two more diagrams to show how the change in the market for TV screens affects the markets for film streaming and movie tickets.arrow_forward
- suppose pizzas and burgers are substitutes. what will definitely happen if there is an increase in the price of pizza? a. demand for burgers will increase. b. supply of burgers will decrease. c. demand for burgers will decrease. d. supply of burgers will increase.arrow_forwardPlayStation 3 and XBOX 360 are substitutes. If the price of PlayStation 3 increases what will happen to the quantity demanded for XBOX 360? Select one: a. None of the above b. The quantity demand for XBOX 360 will not change c. The quantity demand for XBOX 360 will increase d. The quantity demand for XBOX 360 will decreasearrow_forwardThe following four graphs represent four market scenarios, each of which would cause either a movement along the supply curve for premium bottled water or a shift of the supply curve. Match each scenario with the appropriate graph. 1. 3. S₁ Price XXXX Quantity. a. Price 0 Price Quantity 0 D Price 4. Quantity 0 A decrease in the supply of sports drinks b. A drop in the average household income in the United States from $56,000 to $52,000 C. An improvement in the bottling technology for premium bottled water d. An increase in the prices of electrolytes used in premium bottled water D₂ S Quantityarrow_forward
- Consider the market for wood burning stoves, if there is a decrease in the price of electricity and natural gas. Graph and answer the following Change in Demand a. Increase b. Decrease c. Did not change d. Indeterminate Change in Supply a. Increase b. Decrease c. Did not change d. Indeterminate Change in equilibrium price a. Increase b. Decrease c. Did not change d. Indeterminate Change in equilibrium quantity a. Increase b. Decrease c. Did not change d. Indeterminatearrow_forwardDraw a supply and demand graph for Orange juice. Show the market at an equilibrium price of $5 and equilibrium quantity of 200. If the number of buyers decrease and the number of sellers increase, what is the effect on the equilibrium price and equilibrium quantity. Explain and show the change on the grapharrow_forward
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