chapter 3 supply and demand
曼昆经济学原理英文版答案
曼昆经济学原理英文版答案As the creator of the Baidu Wenku document "Principles of Economics by Mankiw (English Version) Answers", I would like to provide a comprehensive guide to the solutions of the questions in the book. This document aims to help students better understand the principles of economics and improve their problem-solving abilities.Chapter 1: Ten Principles of Economics。
1. People face trade-offs.2. The cost of something is what you give up to get it.3. Rational people think at the margin.4. People respond to incentives.5. Trade can make everyone better off.6. Markets are usually a good way to organize economic activity.7. Governments can sometimes improve economic outcomes.8. The standard of living depends on a country's production.9. Prices rise when the government prints too much money.10. Society faces a short-run trade-off between inflation and unemployment.Chapter 2: Thinking Like an Economist。
宏观经济学---曼昆chap03
National Income
Marginal product of labor (MPL )
definition: The extra output the firm can produce using an additional unit of labor (holding other inputs fixed): MPL = F (K, L +1) – F (K, L)
CHAPTER 3
National Income
Exercise: Compute & graph MPL
a. Determine MPL at each value of L.
b. Graph the production function. c. Graph the MPL curve with MPL on the vertical axis and L on the horizontal axis. L 0 1 2 3 4 5 6 7 8 9 10 Y 0 10 19 27 34 40 45 49 52 54 55 MPL n.a. ? ? 8 ? ? ? ? ? ? ?
Labor (L)
Labor (L)
CHAPTER 3
National Income
MPL and the production function
Y
output
MPL
As more labor is added, MPL
F (K , L)
1
MPL
1
MPL
1
Slope of the production function equals MPL
CHAPTER 3
chapter 1-8提纲
Outline for Each ChapterChapter 1 Setting up a Business Four forms of business in a market economy:Ⅰ Sole proprietorship: ①definition:②Advantages and DisadvantagesAdvantages:1 Simple to Establish2345Disadvantages: :1 Unlimited Liability23Ⅱ Partnership: ①definition:②Advantages and DisadvantagesAdvantages: 1 Improved Access to Capital and Credit234Disadvantages: 1 Unlimited Liability23Ⅲ Corporation: ①definition:②Advantages and DisadvantagesAdvantages: 1 Limited Liability234Disadvantages: 1 Double Taxation23Ⅳ Franchising: ①definition:②Advantages and DisadvantagesAdvantages: 1 instant customer recognition2 enjoy some independence as a sole proprietor3 receive training and guidance4 less difficulty getting bank loansDisadvantages: 1 not guarantee success2 sacrifice some independenceChapter 2 MarketingⅠ The origin of Marketing:The essence of marketing —-- finding the needs of the customers and satisfying them.Ⅱ The Function of Marketing.123 Selling4 Transportation5678Ⅲ The Marketing Mix4Ps:Ⅳ Market Segmentation1 definition2 four variables in identifying market segments:Chapter 3 Products and PricingⅠ What is a Product ?convenience goodsConsumer products shopping goodsⅡ Types of Products specialty goodsIndustrial products1.Consumerproduct:________________________________________________________.2.Industrial product:Ⅲ The development of new Products1 Generating New Product Ideas2345Ⅳ Product Life Cycle1 Introduction234Ⅴ Pricing1 Pricing objectives1)2)3)Ⅵ Who sets the price?1 buyers2 supply and demandⅦ Break—Even Analysis1 definition2 formulaⅧ Pricing Strategies12345Chapter 4 Channels of DistributionⅠThree common channels of distribution:1.wholesaler:_______.2.retailer:.3.agents and brokers:1)agents:2)brokers:Examples of retailers: department stores, discount stores, supermarkets, hypermarkets, general stores, specialty stores, door-to-door sellers, mail-order shops, vending machines, virtual stores.Ⅱ The value of middlemen1.time utility2._______________3._______________4._______________5._______________Ⅲ Modes of Transportation1.Rail2._______3._______4._______5._______Chapter 5 PromotionCommon promotional tools: _____________________________________________________________________________________Product advertising1.AdvertisingInstitutional advertisingeight popular ways of advertising: ____________________________________________________________________________________________________2.Personal selling:1)_________________________________________________________2) _________________________________________________________3) _________________________________________________________4) _________________________________________________________5) _________________________________________________________6) _________________________________________________________7) _________________________________________________________3.Sales promotion4.Public Relations and Publicity5.Word of MouthChapter 6 Money and BankingⅠWhat is Money? ----- the currency of a countrycharacteristics: portability (light in weight & easy to carry)divisibility (divisible into smaller parts with a fixed value)stability (stable in v a lue)durability (stand the wear and tear)acceptability (acceptable to the public)ⅡWhat does money do?1.medium of exchange2.store of value3.unit of accountⅢTypes of MoneyCurrency1. spendable(liquid) forms of money demand deposits(可使用的类型)other ―checkable‖ deposits1)currency is mainly made up of paper money and metal coins.2)Demand deposit: People must have their money deposited in banks before they can drawchecks against it; such money is demand deposit.3)Demand deposit is also called NOW accounts(negotiable order of withdrawal).可转让提款帐户Time deposit2. unspendable forms of money money-market mutual funds(不可直接使用的类型) other itemsⅣThe Financial SystemFive Major Parts: Commercial banks / savings and loan associations / mutual savings banks / credit unions / insurance companiesmercial Banks1)taking in deposits2)making loans3)providing service in foreign exchange, letters of credit and banker’s acceptance4)issuing plastic money(credit cards)5)providing financial counseling2.Savings and Loan AssociationAccept deposits and make loans (与商业银行相似)，but the difference is most of the loans are for home mortgage.3.Mutual Savings Banks与储蓄贷款社相似，也提供住房抵押贷款。
商务英语阅读第三册Unit 1 text A
Supply and Demand
Marketers who understand these economic factors do a better job of pricing their products. Demand is the amount of a product that consumers are willing and able to purchase at a given price. Only when products can actually be sold at a given price is there demand for them. Demand and price changes interact. An increase in price will usually cause the demand for the product to decrease.
After Reading
1. Find at least 2 examples of "Pricing" in your daily life and tell them to your partner. 2. Can you find some rules in pricing your salary? what factors should be taken into consideration?
Competition and Profits
Price is important as a competitive device in the marketing mix. Price is often most important in combination with the other marketing mix factors. Price is important in determining profits for the marketer. The marketer knows that price times quantity sold equals sales revenue.
《农业经济学》教学大纲
《农业经济学》教学大纲Syllabus of Agricultural Economics一、课程基本情况（中英文对照）课程名称：农业经济学课程编号：11110350课程总学时：48(其中，讲课 45)课程学分：3课程分类：必修、选修开课学期：秋季开课单位：经济管理学院农业经济系适用专业：农林经济管理必修，其它专业选修所需先修课：西方经济学、政治经济学课程负责人：李秉龙Ⅰ Basic Information of the CourseCourse Name: Agricultural EconomicsCourse Code: 11110350Total Class Hours: 48(Including 45 Teaching class hours)Course Credit：3Course Type: Required; ElectiveCourse Term: FallCourse Units: College of Economics & Management; Department of Agricultural Economics Applicable Specialty: Economics and Management of Agriculture and Forestry (Required); other specialty (Elective)Prerequisite: Western Economics; Political EconomicsResponsible Teacher: Binglong Li二、课程内容简介（中英文对照）农业经济学是农林经济管理专业的必修专业课农业经济学主要为农林经济管理专业的本科生奠定专业理论基础，使学生掌握农业经济学的基本概念和基本理论，认识农业经济的基本问题，掌握分析和解决这些问题的基本知识。
农业经济学主要是运用经济学的基本原理，来研究农产品的供给与需求、农产品现货市场与期货市场、农产品国际贸易等农产品市场运行机理；研究在土地、水资源、资金、技术和信息等稀缺资源的约束下如何进行资源的有效配置，如何提高农业劳动力的利用率和加速农业剩余劳动力的转移，如何推进农业技术进步和集约化；研究在产权明晰界定的条件下，建立以农业家庭经营为基础、以农业合作社和农业产业化经营为发展方向的农业微观经济组织；研究在市场经济条件下，政府如何实施农业保护政策、对食品质量安全进行管理和对农业产业结构进行调整、对传统农业进行改造与推进农业现代化以及实施农业可持续战略。
曼昆经济学原理04-供给需求及市场力量
12
A
D1
20
Number of Cigarettes
Smoked per Day
Change in Quantity Demanded versus Change in Demand
Change in Demand
A shift in the demand curve, either to the left or right.
equal.”
The demand curve slopes downward because, ceteris paribus, lower prices
imply a greater quantity demanded!
Market Demand
Market demand refers to the sum of all individual demands for a particular good or service. Graphically, individual demand
Markets
Buyers determine demand.
Sellers determine supply.
Marcompetitive market is a market. . .
with many buyers and sellers.
Price of Ice-Cream Cone
$3.00
2.50
2.00
1.50
1.00
Consumer Income
Normal Good
Increase in demand
An increase in income...
0.50 01
D1
英文版微观经济学复习提纲Chapter 3.the interaction of demand and supply
3Where Prices Come From: The Interaction of Demandand SupplyChapter SummaryThe model of demand and supply explains how prices are determined in a market system. The main factor affecting the demand for a product is its price. A demand schedule lists various prices of a product and the quantities demanded at those prices. A demand curve shows this same relationship in a graph. The law of demand is the negative relationship between price and quantity demanded, holding everything else constant. Other factors that affect demand include prices of related goods (substitutes and complements), income, tastes, population and demographics, and expected future prices. Responses to changes in any of these shift a product’s demand curve and are called changes in demand.The most important factor affecting the supply of a product is its price. A supply schedule lists various prices of a product and the quantities supplied at those prices. A supply curve shows this same relationship in a graph. The law of supply is the positive relationship between price and quantity supplied, holding everything else constant. Other factors that affect supply include prices of inputs, technological change, prices of substitutes in production, expected future prices, and the number of firms in the market. In response to a change in any one of these factors there will be a change in supply or a shift in the supply curve.The intersection of demand and supply creates an equilibrium price. A surplus exists when the price charged is above the equilibrium price. A shortage exists when the price charged is below the equilibrium price. When the price charged equals the equilibrium price both consumers and producers are willing to exchange the same quantity of the product and there is no further movement in the market price.An increase in demand increases equilibrium price and increases the equilibrium quantity. A decrease in demand decreases equilibrium price and decreases the equilibrium quantity. An increase in supply decreases equilibrium price and increases the equilibrium quantity. A decrease in supply increases equilibrium price and decreases the equilibrium quantity.Learning ObjectivesWhen you finish this chapter you should be able to:1.Understand the factors that influence the demand for goods and services. Many factorsinfluence the willingness of consumers to buy a particular product. Among these factors are theincome they have to spend and the effectiveness of advertising campaigns of the companies that sellproducts consumers want. The most important factor in consumer decisions, though, is the price ofthe product. It is important to note that demand refers not to what a consumer wants to buy but whatWhere Prices Come From: The Interaction of Demand and Supply 33 the consumer is both willing and able to buy. In other words it’s not only what consumers want butalso what they can afford.2.Understand the factors that influence the supply of goods and services. Just as many variablesinfluence consumer demand, many variables influence the willingness and ability of firms to sell agood or service. Among these variables are the prices of inputs used in production and the number offirms in the market. The most important variable that affects firms is the price of whatever they sell.3.Explain how equilibrium in a market is reached, and use a graph to illustrate marketequilibrium. Economists use graphs to show how demand and supply interact in a competitivemarket to establish equilibrium. The graph of a competitive market shows that quantity demandedequals quantity supplied at the equilibrium price. When the price is greater than the equilibriumprice, a surplus exists. In response to the surplus the market price will fall to the equilibrium level.When the price is less than the equilibrium price, a shortage exists. In response to the shortage themarket price will rise to the equilibrium level.e demand and supply graphs to predict changes in prices and quantities. Demand and supplyin most markets change constantly. As a result, equilibrium prices and quantities change constantly.Graphs show the impact on competitive market equilibrium of increases and decreases in demandand supply.Chapter ReviewChapter Opener: How Hewlett-Packard Manages the Demand for PrintersHewlett-Packard (H-P) is a leading selling of printers in the United States. The firm’s success depends on the ability of its executives to analyse and react to changes in the demand and supply of its products. HP’s ability to sell printers is closely tied to the sales of computers and digital cameras. The strength of the overall economy also affects H-P’s business. For example, when the U.S. economy experienced a recession in 2000, sales of computers and printers fell.Helpful Study HintHewlett-Packard and the market for printers are used throughout the chapter to demonstrate changes in demand and supply and how they affect prices. At the end of this chapter An Inside Look describes the competition the company faces in the markets for personal computers and printers.The Demand Side of the MarketAlthough many factors influence the willingness of consumers to buy a particular product the main influence on consumer decisions is the product’s price. The quantity demanded of a good or service is the amount that a consumer is willing and able to purchase at a given price. A demand schedule is a table showing the relationship between the price of a product and the quantity of the product demanded. A demand curve shows this same relationship in a graph. Because quantity demanded always increases in response to a decrease in34 Chapter 3price, this relationship is called the law of demand. The law of demand is explained by the substitution and income effects. The substitution effect is the change in quantity demanded of a good that results from a change in price, making the good more or less expensive relative to other goods that are substitutes for it. The income effect is the change in the quantity demanded of a good that results from the effect of a change in the good’s price on consumer purchasing power.Ceteris paribus (“all else equal”) is the requirement that when analysing the relationship between two variables - such as price and quantity demanded - other variables must be held constant. When one of the non-price factors that influence demand changes a shift in demand - an increase or decrease in demand - results. The most important non-price influences on demand are prices of related goods (substitutes and complements), income, tastes, population and demographics and expected future prices.Substitutes are goods and services that can be used for the same purpose while complements are goods that are used together. A decrease in the price of a substitute for good A causes the quantity of the substitute demanded to increase, shifting the demand curve for good A to the left. An increase in the price of a substitute for good A causes the quantity of the substitute demanded to decrease, shifting the demand curves for good A to the right. Changes in prices of complements have the opposite effect. A decrease in the price of a complement for good B causes the quantity of the complement demanded to increase, shifting the demand curve for good A to the right. An increase in the price of a complement for good B causes the quantity of the complement demanded to decrease, shifting the demand curve for good A to the left.The income that consumers have available to spend affects their willingness to buy a good. A normal good is a good for which demand increases as income rises and decreases as income falls. An inferior good is a good for which demand increases as income falls and decreases as income rises. When consumers’ tastes for a product increase, the demand curve for the product will shift to the right, and when consumers’ tastes for a product decrease, the demand curve for the product will shift to the left.As population increases, the demand for most products increases. Demographics are the characteristics of a population with respect to age, race, and gender. As demographics change the demand for particular goods will increase or decrease because different categories of people will have different preferences for those goods. If enough consumers become convinced that a good will be selling for a lower price in the near future, the demand for the good will decrease in the present. If enough consumers become convinced that the price of a good will be higher in the near future, the demand for the good will increase in the present.Helpful Study HintStudents often confuse a change in quantity demanded with a change in demand. Only one variable, the price of a good or service, can cause changes in quantity demanded. This change is described as a movement along a demand curve. Changes in demand are caused by changes in non-price factors. Constant repetition is essential to understand this important difference. Use Making the Connection 3.1 (page 68) and Making the Connection 3.2 (page 81) to find examples of factors that change demand. Be sure you understand why it is demand and not quantity demanded that changes.The Supply Side of the MarketMany variables influence the willingness of firms to sell a good or service. The most important of these variables is price. Quantity supplied is the amount of a good or service that a firm is willing to sell at a givenWhere Prices Come From: The Interaction of Demand and Supply 35 price. A supply schedule is a table that shows the relationship between the price of a product and the quantity of the product supplied. A supply curve shows this same relationship in a graph. The law of supply states that, holding everything else constant, increases in price cause increases in the quantity supplied and decreases in price cause decreases in the quantity supplied.Variables other than price affect supply. When any of these variables change, a shift in supply - an increase or a decrease in supply - results. The following are the most important variables that shift supply: prices of inputs used in production, technological change, prices of substitutes in production, expected future prices and the number of firms in the market.If the price of an input (for example, labour or energy) used to produce a good rises, the supply for the good will decrease and the supply curve will shift to the left. If the price of an input decreases, the supply for the good will increase and the supply curve will shift to the right. Technological change is a positive or negative change in the ability of a firm to produce a given level of output with a given amount of inputs. A positive technological change will shift a firm’s supply curve to the right while a negative technological change will shift a firm’s supply curve to the left.An increase in the price of an alternative good (B) that a firm could produce instead of producing good A will shift the firm’s supply curve for good A to the left. If a firm expects the price of its product will rise in the future, the firm has an incentive to decrease supply in the present and increase supply in the future. When firms enter a market, the market supply curve shifts to the right. When firms exit a market, the market supply curve shifts to the left.Helpful Study HintThe law of supply may seem logical because producers earn more profit when the price they sell their products for rises. But consider Figure 3.7 (pages 72-73) and the following question: “If Hewlett-Packard can earn a profit from selling 9 million printers per month at a price of $125, why not increase quantity supplied to 10 million and make even more profit?” The upward slope of the supply curve is due not only to the profit motive but the increasing marginal cost of printers. (Increasing marginal costs were discussed in Chapter 2.) Hewlett-Packard will increase its quantity supplied from 9 to 10 million in Figure 3.7 only if the price it will receives is $175 because the cost of producing one million more printers is greater than the cost of the last one million printers.As with demand and quantity demanded, be careful not to confuse a change in quantity supplied (due only to a change in the price of a product) and a change in supply (a shift of the supply curve in response to one of the non-price factors). Constant reinforcement of this is necessary. Be careful not to refer to an increase in supply as “a downward shift” or a decrease in supply as “an upward shift.” Because demand curves are downward-sloping, an increase in demand appears in a graph as an “upward shift.” But because supply curves are upward-sloping, a decrease in supply appears in a graph as an “upward shift.” You should always refer to both changes in demand and supply as being “shifts to the right” and “shifts to the left” to avoid confusion.36 Chapter 3Market Equilibrium: Putting Demand and Supply TogetherThe purpose of markets is to bring buyers and sellers together. The interaction of buyers and sellers in markets results in firms producing goods and services consumers both want and can afford. At market equilibrium the price of the product makes quantity demanded equal quantity supplied. A competitive market equilibrium is a market equilibrium with many buyers and many sellers. The market price (the actual price you would pay for the product) will not always be the equilibrium price. A surplus is a situation in which the quantity supplied is greater than the quantity demanded. When there is surplus the market price is above the equilibrium price. Firms have an incentive to increase sales by lowering price. As the market price is lowered, quantity demanded will rise and quantity supplied will fall until the market reaches equilibrium.A shortage is a situation in which quantity demanded is greater than the quantity supplied. When there is a shortage the market price is below the equilibrium price. Some consumers will want to buy the product at a higher price to make sure they get what they want. As the market price rises the quantity demanded will fall - not everyone will want to buy at a higher price - and quantity supplied will rise until the market reaches equilibrium. At the competitive market equilibrium there is no reason for the price to change unless either the demand curve or the supply curve shifts.Helpful Study HintIt’s very important to understand how demand and supply interact to reach equilibrium. Remember that adjustments to a shortage and a surplus reflect changes in quantity demanded (not demand) and quantity supplied (not supply). Solved Problem 3.1 (page 80-81) addresses this. Market or actual prices are easy to understand because these are the prices consumers are charged. You know the price you paid for a CD because it is printed on the receipt. But no receipt has “equilibrium price” written on it.To help you understand what an equilibrium price and quantity are, it may help to use an analogy. Suppose you were to push an inflated ball under the surface of a sink filled with water. If you were to release the ball it would move quickly to the surface. If you were to hold the ball above the sink and drop it, the ball would fall to the surface. The surface of the water is the equilibrium position for the ball. A market equilibrium is the position a market will move towards if there is a shortage or surplus.The Effect of Demand and Supply Shifts on EquilibriumWhen the supply curve shifts, the equilibrium price and quantity change in the opposite direction. Increases in supply result from the following non-price factor changes: a decrease in an input price, positive technological change, a decrease in the price of a substitute in production, a lower expected future product price and an increase in the number of firms in the market. A decrease in supply results in a higher equilibrium price and a lower equilibrium quantity. Decreases in supply result from the following non-price factor changes: an increase in an input price, negative technological change, an increase in the price of a substitute in production, a higher expected future product price and a decrease in the number of firms in the market.When the demand curve shifts, the equilibrium price and quantity shift in the same direction. Increases in demand can be caused by any change in a variable that affects demand except price. For example, demand willWhere Prices Come From: The Interaction of Demand and Supply 37 increase if the price of a substitute rises, the price of a complement falls, income rises (for a normal good), income falls (for an inferior good), population increases or the expected future price of the product rises. A decrease in demand results in a lower equilibrium price and lower equilibrium quantity. Decreases in demand can be caused by any change in a variable that affects demand except price. For example, demand will decrease if the price of a substitute falls, the price of a complement rises, income falls (for a normal good), incomes rises (for an inferior good), population decreases, or the expected future price of the product falls.Helpful Study HintMaking the Connection 3.2 (page 81), Solved Problem 3.2 (pages 83-85) and questions 11-14 of the Problems and Applications can be used to conduct your own research on how changes in supply and demand affect prices in your community for products such as flat-screen televisions, watermelons and housing. For example, visit stores that sell flat-screen televisions and find out their market prices. Compare the market price you find with the expected prices as described in Making the Connection 3.2. For watermelons ask sellers how current prices compare with prices at different times of the year. Draw demand and supply diagrams that represent the market conditions you observe. You can ask your instructor if your analysis is correct.Solved ProblemChapter 3 of the textbook includes two Solved Problems that support learning objectives 1 (“Use a graph to illustrate market equilibrium”) and 4 (“Use demand and supply graphs to predict changes in prices and quantities”). The following is an additional Solved Problem that supports another learning objective from this chapter.Solved Problem 3.3 Supports Learning Objective 3.2: Understand the factors that influence the supply of goods and services.‘A farmer went to market to market to sell a…’Television programming in many parts of regional Australia features many commercials aimed at farmers. Ads for fertiliser, seed, and farm equipment are as common as commercials for laundry soap and soft drinks. Much of the nation’s wheat is grown in areas where the climate and soil conditions are well-suited for growing barley as well. Each year a farmer must decide how many acres of land to plant with wheat and how many acres to plant with barley.a)If both crops can be grown on the same land, why would a farmer choose to produce wheat ratherthan barley?b)Which of the variables that influence supply would explain a farmer’s choice to produce barley orwheat?Solving the ProblemStep 1: Review the chapter material. This problem refers to factors variables that affect supply, so you may want to review the section “Variables That Shift Supply,” which begins on pages 72-75 of the textbook.38 Chapter 3Step 2: Answer question (a) by explaining why a farmer would choose to produce wheat rather than barley. Among the factors that would influence a farmer’s choice is the expected profitability of the two crops.A farmer will grow wheat rather than barley if he expects the profits from growing wheat will be greater than those earned from growing barley.Step 3: Answer question (b) by explaining which variables may affect the farmer’s choice. Other things being equal, as the price of barley falls relative to the price of wheat, the supply of wheat would rise. Because wheat and barley are substitutes in production the variable “prices of substitutes in production” is the variable that would explain the farmer’s choice.Self-Test(Answers are provided at the end of the Self-Test.)Multiple-Choice Questions1.What does the term quantity demanded refer to?a.The total amount of a good that a consumer is willing to spend per month.b.The quantity of a good or service demanded that corresponds to the quantity supplied.c.The quantity of a good or service that a consumer is willing to purchase at a given price.d.None of the above2.Which of the following is the textbook’s definition of demand curve?a.The quantity of a good or service that a consumer is willing to purchase at a given price.b. A table showing the relationship between the price of a product and the quantity of theproduct demanded.c. A curve that shows the relationship between the price of a product and the quantity of theproduct demanded.d.The demand for a product by all the consumers in a given geographical area.Where Prices Come From: The Interaction of Demand and Supply 39 3.Refer to the graph below. What happens to quantity demanded in this graph?a.It increases as the price increases.b.It increases as the price decreases.c.It may increase or decrease as the price increases.d.It is not related to price.4.When the price of a printer rises, the quantity of printers demanded by Kate falls. According to thisstatement, what do we call Kate’s demand curve for printers?a.Unpredictableb.Upward slopingc.Downward slopingb.An exception to the law of demand5.If there are three consumers in a market, how can market demand be obtained?a.By adding the prices that consumers are willing to pay for a given quantity of output.b. b.By adding the quantities that consumers are willing to purchase at a given price, forvarious price levels.c.By adding both the prices consumers are willing to pay and the quantities consumers arewilling to purchase.d.By dividing the quantity demanded in the market by three.40 Chapter 36.What is the law of demand?a.The law of demand states that a change in the quantity demanded, caused by changes inprice, makes the good more or less expensive relative to other goods.b.The law of demand states that a change in the quantity demanded, caused by changes inprice, affects a consumer’s purchasing power.c.The law of demand states that, holding everything else constant, when the price of goodfalls, the quantity demanded will increase.d.The law of demand is the requirement that when analysing the relationship between priceand quantity demanded, other variables must be held constant.7.Which of the following best describes how consumers consider buying other goods when the price ofa good rises?a.The law of demandb.The substitution effectc.The income effectb.The term ceteris paribus8.Refer to the graphs below. Each graph refers to the demand for printers. Which of the graphs bestd escribes the impact of an increase in the price of a substitute good?a.The graph on the leftb.The graph on the rightc.Both graphsd.Neither graphWhere Prices Come From: The Interaction of Demand and Supply 41 9.Refer to the graphs below. Each graph refers to the demand for printers. Which of the graphs bestdescribes the impact of an increase in income, assuming that printers are a normal good?a.The graph on the leftb.The graph on the rightc.Both graphsb.Neither graph10.Refer to the graphs below. Each graph refers to the demand for printers. Which of the graphs bestdescribes the impact of an increase in population?a.The graph on the leftb.The graph on the rightc.Both graphsd.Neither graph11.When two goods are complements, which of the following occurs?a.The two goods can be used for the same purpose.b.The two goods are used together.c.The demand for each of these goods increases when income rises.d.The demand for each of these goods increases as income falls.12.What is an inferior good?a. A good for which demand increases as income risesb. A good for which demand decreases as income risesc. A good that cannot be used together with another goodb. A good that does not serve any real purpose13.Refer to the graph below. Which of the following moves best describes a change in demand?a.The move from A to Bb.The move from A to Cc.Either the move from A to B or the move from A to Cd.The move from B to A14.Refer to the graph below. Which of the following moves best describes what happens when a changein something other than the price of printers affects the market demand for printers?a.The move from A to Bb.The move from A to Cc.Either the move from A to B or the move from A to Cb.None of the above15.What does the term quantity supplied refer to?a.The quantity of a good or service that a firm is willing to supply at a given priceb. A table that shows the relationship between the price of a product and the quantity of theproduct suppliedc. A curve that shows the relationship between the price of a product and the quantity of theproduct demandedd.None of the above16.Which of the following is the textbook’s definition of supply curve?a.The quantity of a good or service that a firm is willing to supply at a given priceb. A table that shows the relationship between the price of a product and the quantity of theproduct suppliedc. A curve that shows the relationship between the price of a product and the quantity of theproduct suppliedd.None of the above17.Which of the following statements is correct?a.Once we know the market supply curve, we also know all the individual supply demandcurves.b.To derive a market supply curve, we add the prices that producers must obtain in order toproduce a given quantity of output.c.To derive a market supply curve, we can add horizontally individual supply curves.d.All of the above statements are correct.18.Refer to the graphs below. Each graph refers to the supply for printers. Which of the graphs bestdescribes the impact of an increase in the price of an input?a.The graph on the leftb.The graph on the rightc.Both graphsd.Neither graph19.Refer to the graphs below. Each graph refers to the supply for printers. Which of the graphs bestdescribes the impact of an increase in the price of a substitute in production?a.The graph on the leftb.The graph on the rightc.Both graphsb.Neither graph20.Refer to the graphs below. Each graph refers to the supply for printers. Which of the graphs bestdescribes the impact of an increase in the number of firms in the market?a.The graph on the leftb.The graph on the rightc.Both graphsd.Neither graphShort Answer Questions1.What evidence can be used to support the following statement? “Tickets to the cricketWorld Cup final and the AFL Grand Final do not sell at their equilibrium prices.”2. In response to a surplus, firms will lower a product’s price until the quantity suppliedequals quantity demanded. But prices of some goods will fall more quickly than others.What type of good would firms lower the price of quickly in response to a surplus?3.Explain the difference between a shortage and scarcity.4. During 2005 there were over 80,000 people on waiting lists for kidney, lung and otherorgan transplant operations in the U.S. By law, organ donors and their families in theU.S. may not be paid for the donated organs (as in Australia). If payments for organdonations were made legal in the U.S. would this affect the demand or the quantitydemanded for organ transplants demanded?。
萨缪尔森经济学Economics第十八版 18th 课后概念、习题答案4
C H A P T E R 4A p p l i c a t i o n s o fS u p p l y a n d D e m a n dCHAPTER OVERVIEW AND TEACHING TIPSIn Chapter 3 you explained the laws of supply and demand, and you familiarized students with the effects of changes in supply and demand. This leads naturally to the related question, “By how much?” How large are the responses to changes in the market, and on what does this responsiveness depend? This chapter introduces students to the concept of elasticity and exposes them to two types of elasticities: price elasticity of demand and price elasticity of supply. These concepts are difficult for students, particularly for those who have math anxiety. Emphasize the importance of percent- age changes in the numerator and denominator of the elasticity equations, and distinguish between price elasticity of demand and the slope of the demand curve. Do not hesitate to spend class time working through examples that illustratethe relationships between the price elasticity of demand and supply, and the demand and supply curves.The final section of the chapter provides students with the opportunity to apply market analysis and elasticity concepts in the arena of public policy-making. Distinguish carefully between the party who writes the check to the gov- ernment for a tax and the party who bears the economic burden of taxation. Just because taxes are often “paid” to the government by sellers does not mean that the sellers actually experience reduced incomes when new taxes are imposed. Price ceilings and price floors describe another type of government intervention into the operation of markets.LEARNING OBJECTIVES1. Define the term price elasticity of demand.2. Discuss the factors that determine whether price elasticity of demand is elastic, unitary-elastic, orinelastic, and compare consumer behavior in the short run and the long run. Describe elastic and inelastic regions that exist along any demand curve.3. Calculate price elasticity of demand using a method of averages, ant interpret your result.4. Explain, using diagrams, the relationship between total revenue and price elasticity of demand.5. Define the term price elasticity of supply.6. Discuss the factors that determine whether price elasticity of supply is elastic, unitary-elastic, orinelastic, and compare consumer behavior in the short run and the long run.7. Calculate price elasticity of supply using a method of averages, and interpret your result.8. Apply supply, demand, and elasticity concepts to the following situations and markets: (a) agriculture markets, (b)gasoline taxes, (c) minimum wages, and (d) energy price controls.SUGGESTED ANSWERS TO QUESTIONS IN THE TEXT1. A good harvest shifts a fairly inelastic supply curve to the right. Equilibrium moves down alonga relatively inelastic demand curve to support a (much) lower price, and hence lower farm revenues.2. More price elastic: perfume and ice cream because they are closer to luxuries than necessities; chocolate icecream and automobiles because there are more substitutes for these goods than there are for ice cream and automobile tires, respectively.3. Demand would be inelastic, with E D = .5.4. Assume that demand and supply both show some price elasticity.a. Output and price up along supply curve (demand-curve shift), assuming apartments are normal goods.b. Output down and price (paid by renters) up along demand curve (supply shift).c. If this price is below equilibrium (which makes sense if the policy is to have an impact), this is a price ceiling,established to protect buyers. A shortage of apartments will result, with quantity demanded greater than quantity supplied.1516 C HAPTER 4: A PPLICATIONS OF S UPPLY AND D EMAND d. Output up and price down along demand curve (supply shift).e. Output down and price up along demand curve (supply shift).5. According to the text, a 10% increase in the minimum wage would decrease employment of teenagers between 1and 3 percent. The impact on the adult population is even smaller. Thus, income for teenagers and adults would rise. Thus, if I had to make a decision on increasing the minimum wage, and if raising wages for low-wage workers were important to me, I would certainly vote to increase the minimum.6. Minimum wages can increase the quantity of labor supplied and decrease the quantity of labor demanded. Abind- ing minimum wage therefore creates a surplus of labor. Price ceilings can have the opposite effect. A legal maximum interest rate can lead to a shortage of loanable funds, with lenders willing to supply fewer funds than demanders would like to borrow. See Figure 4-1 for an illustration of the impact of a minimum wage on the marketfor unskilled workers when the demand is relatively elastic for those workers. Area B is lost due to the minimumwage, area A is gained, resulting in smaller earnings overall.Figure 4-1 7. The $2000 tariff on imported automobiles will act like a tax in that market, shifting the supply curve to the left by the amount of the tariff and resulting in lower quantities exchanged at a higher price. This will encourage con- sumers to substitute into autos produced by domestic firms, increasing the demand for those cars. The price and quantity exchanged of autos produced by domestic firms will rise, resulting in greater revenues for domestic automakers. 8. a. Supply down by 5 percent with elasticity of 0.05 means that price must increase by 100 percent. b. Elasticity is a ratio of percentages; it is thus unitless. c. Supply down by 50 percent means that price must increase by 100 percent to keep the price elasticity equal to 0.5. Crime should increase if addicts steal to feed their habits. A successful rehab program would shift demand in; quantity would fall by 50 percent and price would stay the same (the shifts would match). d. This policy would shift the supply of pork to the left, raising market prices. If, as argued in this chapter, the demand for agriculture products is inelastic, higher prices will result in higher farm incomes. e. The income rectangle is larger after the minimum wage is increased. This tells us that the price elasticity of demand for unskilled workers if very low; changes in the wage have little impact on the quantity of these laborers demanded. 9. a. See diagram. Figure 4-2C HAPTER 4: A PPLICATIONS OF S UPPLY AND D EMAND 17b. The vacancy rate will fall, there will be a shortage of apartments at the ceiling price.Figure 4-3c. The government might subsidize landlords in order to provide higher compensation for apartments.d. Rent controls limit the amount of compensation that landlords can receive for their property. This limits theirwillingness to maintain property, thus giving rise to the concerns of the European critic.10. The demand curve is given by P = 6.56 -.08Q, the supply curve is perfectly elastic at a price of $2.40 and then at aprice of $2.80. See diagram. The appropriate constant elasticity demand curve is Q = 87.2P-59.Figure 4-4DISCUSSION QUESTIONS1. Define the term elasticity. How does this concept help to explain the general shape and slope of a demand curve?2. True or false: The price elasticity of demand changes as price changes along a linear demand curve.Carefully explain your answer.3. If price elasticity of demand changes along a demand curve, how can we say that a demandcurve is relatively elastic or inelastic? Explain.4. It is easy to understand why a large harvest of corn should lower the per unit price. Explain how that could actuallylower the total receipts farmers get from the corn harvest.5. Oil prices increased more than tenfold between 1973 and 1981 as a result of strategies employed by OPEC, an inter-national cartel. Are you surprised that even the richest societies chose to conserve their oil and related energy products? How might people conserve and economize when gasoline, heating fuels, and electricity have become more expensive per unit? How might the increase in gasoline prices in summer 2000 affect behavior?6. “Any demand curve is almost certain to have both an elastic and an inelastic range.” Can you give an exception? Isit realistic through the range of all prices and quantities?7. How does the introduction of the time element affect price elasticities of supply and demand?18 C HAPTER 4: A PPLICATIONS OF S UPPLY AND D EMAND 8. “Knowing how to calculate the slope of a straight line enables you to calculate the elasticity for any point on anycurve.” Discuss the relationship between price elasticity of demand and the slope of the demand curve.9. What is the difference between the price elasticity of demand and the price elasticity of supply?10. Governments interested in maximizing their total revenue have often taxed products like salt, tobacco, andalcohol. What does this suggest about the elasticity of demand for these goods? Why would they be good targets for taxation?11. Evaluate the following charge: If the government grants an industry a subsidy of $1 per unit and the price does notfall by the full $1, then the industry is cheating the consumer.12. Under what circumstances might black markets arise? What can be done about them? Are black markets necessari-ly bad?13. Suppose the government wishes to set a lower bound on the price of wheat. Compare and contrast the methods itcan use to achieve this goal with respect to the what, how, and for whom questions.14. Many economists are against minimum-wage laws. Discuss why a legal minimum wage set above equilibriummay lead to unemployment. How do the price elasticities of demand and supply help to determine the extent of this unemployment? Can people who earn lower wages be helped in ways that will not lead to unemployment?(Think about both sides of the market as you answer this question.)15. According to some estimates, the total revenues from the sale of pornography in Denmark declined by 25 percent inthe year immediately following the liberalization of the censorship laws. From this evidence, some sociologists have determined that legalizing this type of activity reduces the demand for it. Do you agree?Why or why not? What effects on the supply side might be deduced?16. What factors are likely to make demand for a commodity either elastic or inelastic? What factorsare likely to influence elasticity of supply?17. How do you think a minimum-wage law might affect the market for unskilled labor? For skilled labor?ESSAY QUESTIONS1. The Brazilian government used to destroy a substantial portion of its coffee harvest to increase its revenue fromcoffee exports. What conditions are essential to make this type of policy economically beneficial for the country? 2. A witness in a recent congressional hearing argued that consumers budgeted a fixed amount of expenditure for theproducts of his industry. Assuming his statements to be correct, what is the elasticity of demand for the industry’s products? Why?3. On a straight-line demand curve, point out the ranges where demand is elastic, inelastic, and unitary elastic.Why does the elasticity vary along a straight-line demand curve? Draw a graph that relates these regions to the slope of a total revenue curve.4. Consider two markets, the apple market and the orange market. Draw a supply-and-demanddiagram for each market. Indicate the equilibrium price and quantity of P0 and Q0, respectively.a. If there were an outbreak of an apple disease, illustrate the new equilibrium price and quantity in the applemarket by P1, Q1.b. How might this affect the orange market? Show these effects on your diagram.Redraw the original diagram for the apple market. Now suppose the government wishes to encourage the production of apples and gives the producers of apples a subsidy of x dollars per apple.c. Indicate the new equilibrium price and quantity in the apple market by P2, and Q2, respectively.d. Explain whether the equilibrium price will increase or decrease by more or less than the amount of the subsidyper apple.e. Shade in the total subsidy the government will pay to the apple industry each period.f. Describe how this subsidy will be shared between consumers and producers.5. The supply and demand curves for wheat are very inelastic. Those for sugar are very elastic. If a sales tax of $1per unit is put on each of these goods, in which case will the incidence fall largely on the consumer and in which case largely on the producer? In which case is the revenue raised by the tax higher? Use diagrams to illustrate your answers.6. Elasticity is the same as slope. Comment on the validity of this statement.7. Explain the relationship between the elasticity of demand and revenue of a business.。
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chapter 3 supply and demandDescription本次测验由50道选择题构成，每题1分，测验时间为150分钟。
This assessment is worth 50 points.Note:Correct answers appear in Blue. Incorrect answers and skipped questions appear in Red after 'Your response'.1.Reference: 3-13An increase in demand is represented by shifting from(1 point)Your response:c.curve C to curve D.(You answered correctly!)Feedback :Learning Objective: Shifting the demand curveLevel of Learning: ApplicationSource: From 2eType: Graphical Problem1 point awarded.The correct answer is:a. curve A to curve B.b. curve B to curve A.c. curve C to curve D.d. curve D to curve C.e. curve C to curve B.2. McDonald's is running a $0.99 Small Mac special. This is likely tocause(1 point)Your response:c.a decrease in the supply of Small Macs.Feedback :Learning Objective: Define a demand curveLevel of Learning: ApplicationSource: UniqueType: Word Problem0 points awarded.The correct answer is:a. an increase in the demand for Small Macs.b. a decrease in the demand for Small Macs.c. a decrease in the supply of Small Macs.d. a decrease in the quantity demanded of Small Macs.e. an increase in the quantity demanded of Small Macs.3. As consumers' incomes decrease, the demand curve for bolognasandwiches shifts to the right. Therefore bologna sandwiches are a(n)(1 point)Your response:c.substitute good.Feedback :Learning Objective: Shifting the demand curveLevel of Learning: ApplicationSource: UniqueType: Word Problem0 points awarded.The correct answer is:a. normal good.b. complement good.c. substitute good.d. defective good.e. inferior good4. When the price of a good is below its equilibrium value,(1 point)Your response:d.suppliers will notice their inventories are growing.Feedback :Learning Objective: Determination of pricesLevel of Learning: ApplicationSource: UniqueType: Word Problem0 points awarded.The correct answer is:a. consumers will bid the price up.b. excess supply will occur.c. it will tend to stay below the equilibrium value.d. suppliers will notice their inventories are growing.e. suppliers will lower the price.5.Reference: 3-18Assume the market is originally at point Z. Movement to point Y isa combination of(1 point)Your response:d.a decrease in quantity supplied and a decrease in demand.(You answered correctly!)Feedback :Learning Objective: Change in supply vs quantity suppliedLevel of Learning: AnalysisSource: UniqueType: Graphical Problem1 point awarded.The correct answer is:a. a decrease in quantity supplied and an increase in demand.b. a decrease in supply and an increase in demand.c. an increase in supply and an increase in quantitydemanded.d. a decrease in quantity supplied and a decrease in demand.e. a decrease in supply and a decrease in quantity demanded.6. The equilibrium price and quantity of any good or service isestablished by(1 point)Your response:d.both demanders and suppliers.(You answered correctly!)Feedback :Learning Objective: Equilibrium price Level of Learning: ComprehensionSource: UniqueType: Word Problem1 point awarded.The correct answer is:a. only demanders.b. only suppliers.c. government regulations.d. both demanders and suppliers.e. custom and tradition.7.Reference: 3-2At a price of $3, quantity supplied is(1 point)Your response:b.2.(You answered correctly!)Feedback :Learning Objective: Define a supply curveLevel of Learning: KnowledgeSource: UniqueType: Graphical Problem1 point awarded.The correct answer is:a. 0.b. 2.c. 4.d. 6.e. 7.8. "Holding all other relevant factors constant, consumers willpurchase more of a good as its price falls." This statement reflects the behavior underlying(1 point)Your response:a.the demand curve.(You answered correctly!)Feedback :Learning Objective: Define a demand curveLevel of Learning: KnowledgeSource: UniqueType: Word Problem1 point awarded.The correct answer is:a. the demand curve.b. an increase in demand.c. the supply curve.d. a decrease in the demand curve.e. the production possibilities curve.9. Everyone in the neighborhood has been complaining about thedeteriorating condition of the park, but nobody has cleaned it up.Why not?(1 point)Your response:d.No single person's reservation price to clean the park makes it worth cleaning it.(You answered correctly!)Feedback :Learning Objective: Smart for One, Dumb for All principleLevel of Learning: AnalysisSource: UniqueType: Word Problem1 point awarded.The correct answer is:a. There is an excess demand for parks in the neighborhood.b. There is an excess supply of parks in the neighborhood.c. If you totaled everyone's reservation prices to clean the park,it would not be enough to pay the cost of cleaning it.d. No single person's reservation price to clean the parkmakes it worth cleaning it.e. Park maintenance is not an economic problem.10. "As the price of personal computers continues to fall, demandincreases." This headline is inaccurate because(1 point)Your response:d.falling prices for personal computers increases quantitydemanded, not demand.(You answered correctly!)Feedback :Learning Objective: Change in demand vs quantity demandedLevel of Learning: ApplicationSource: UniqueType: Word Problem1 point awarded.The correct answer is:a. a change in the price of personal computers shifts thedemand curve.b. a change in the price of personal computers shifts thesupply curve.c. the statement is backwards: increased demand leads tolower prices.d. falling prices for personal computers increases quantitydemanded, not demand.e. falling prices for personal computers increases quantitysupplied.11. Suppose that the equilibrium price of pickles falls while theequilibrium quantity rises. The most consistent explanation for these observations is(1 point)Your response:e.an increase in the supply of pickles with no change in demand.(You answered correctly!)Feedback :Learning Objective: Market effect of a change in supplyLevel of Learning: ApplicationSource: UniqueType: Word Problem1 point awarded.The correct answer is:a. a decrease in demand for pickles with no change in supply.b. an increase in demand for pickles with no change in supply.c. a decrease in the supply of pickles and a decrease in thedemand for pickles.d. a decrease in the supply of pickles with no change indemand.e. an increase in the supply of pickles with no change indemand.12.Reference: 3-2At a price of $3, the market will experience ______________ in the amount of _________ units.(1 point)Your response:a.excess demand; 2 unitsFeedback :Learning Objective: Calculate excess supply or excess demand Level of Learning: ApplicationSource: UniqueType: Graphical Problem0 points awarded.The correct answer is:a. excess demand; 2 unitsb. excess supply; 7 unitsc. equilibrium; 4 unitsd. excess demand; 5 unitse. excess supply; 3 units13. Starting with column A, it appears that column B represents______.(1 point)Your response:a.an increase in quantity demandedFeedback :Learning Objective: Shifting the demand curveLevel of Learning: ApplicationSource: UniqueType: Calculation Problem0 points awarded.The correct answer is:a. an increase in quantity demandedb. an increase in demandc. a decrease in quantity suppliedd. an increase in quantity suppliede. a change in supply14. If pizzas are normal good, then a decrease in the price of pizza willcause a(n)(1 point)Your response:b.increase in quantity demanded.(You answered correctly!)Feedback :Learning Objective: Change in demand vs quantity demandedLevel of Learning: ComprehensionSource: UniqueType: Word Problem1 point awarded.The correct answer is:a. increase in demand.b. increase in quantity demanded.c. decrease in quantity demanded.d. decrease in supply.e. decrease in the number of consumers.15. When a market is not in equilibrium then(1 point)Your response:d.government intervention is necessary.Feedback :Learning Objective: No Cash on the Table principleLevel of Learning: ComprehensionSource: Study GuideType: Word Problem0 points awarded.The correct answer is:a. it is always possible to identify unexploited opportunities.b. demanders are dissatisfied with the market.c. suppliers are dissatisfied with the market.d. government intervention is necessary.e. it will have a tendency to remain in disequilibrium.16. The demand curve illustrates the fact that consumers(1 point)Your response:c.tend to purchase more of a good as its price falls.(You answered correctly!)Feedback :Learning Objective: Define a demand curveLevel of Learning: ComprehensionSource: UniqueType: Word Problem1 point awarded.The correct answer is:a. tend to purchase more of a good as its price rises.b. purchase name brand products more frequently thangeneric products.c. tend to purchase more of a good as its price falls.d. purchase more of a good as their incomes fall.e. purchase more of a good as their incomes rise.17. Suppose you notice that more and more people are drivinggas-guzzling cars. Since you drive an economy car, theirincreased demand for gas:(1 point)Your response:a.does not affect you.Feedback :Learning Objective: Determination of pricesLevel of Learning: ApplicationSource: UniqueType: Word Problem0 points awarded.The correct answer is:a. does not affect you.b. companies to charge a lower price, thus benefiting you.c. causes the price you pay for gas to increase.d. does not change the price you pay, but reduces the quantityof gas supplied.e. reduces the resale value of your car.18. You can spend $5 for lunch and you would like to have two DoubleCheeseburgers. When you get to the restaurant you, find out the price for Double Cheeseburger has increased from $2.50 to $2.99.You decide to have two single Cheeseburgers for lunch. This is best described as a(n)(1 point)Your response:e.none of the above.Feedback :Learning Objective: Income effectLevel of Learning: ApplicationSource: UniqueType: Word Problem0 points awarded.The correct answer is:a. substitution effect.b. income effect.c. buyer's reservation price.d. seller's reservation price.e. none of the above.19. Gertie saw a pair of jeans that she was willing to buy for $35. Theprice tag, though, said they were $29.99. Therefore,(1 point)Your response:d.Gertie should buy the jeans because the price is less than herreservation price.(You answered correctly!)Feedback :Learning Objective: Buyer's Reservation priceLevel of Learning: ApplicationSource: UniqueType: Word Problem1 point awarded.The correct answer is:a. Gertie should not buy the jeans because they will be oflower quality than she expectedb. Gertie should not buy the jeans because the price is notequal to her reservation price.c. Gertie should only buy the jeans if she can negotiate abetter price with the salesperson.d. Gertie should buy the jeans because the price is less thanher reservation price.e. Gertie should buy the jeans because the price is more thanher reservation price.20.Reference: 3-3At a price of $15, quantity supplied is(1 point)Your response:d.100.(You answered correctly!)Feedback :Learning Objective: Define a supply curveLevel of Learning: KnowledgeSource: UniqueType: Graphical Problem1 point awarded.The correct answer is:a. 400.b. 300.c. 200.d. 100.e. 0.21. In a free market, if the price of a good is below the equilibriumprice, then(1 point)Your response:b.suppliers, dissatisfied with growing inventories, will raise the price.Feedback :Learning Objective: Determination of pricesLevel of Learning: ComprehensionSource: UniqueType: Word Problem0 points awarded.The correct answer is:a. government needs to set a higher price.b. suppliers, dissatisfied with growing inventories, will raisethe price.c. demanders, to acquire the good, will bid the price higher.d. government needs to set a lower price.e. suppliers, dissatisfied with growing inventories, will lowerthe price.22.Reference: 3-8Given that demand shifts from D1 to D2, the equilibrium price will(1 point)Your response:b.rise to $9.(You answered correctly!)Feedback :Learning Objective: Market effect of a change in demandLevel of Learning: ApplicationSource: UniqueType: Graphical Problem1 point awarded.The correct answer is:a. rise to $10.b. rise to $9.c. rise to $7.50.d. fall to $6.e. remain unchanged.23. The situation described i n the book as “Smart for One, Dumb forAll” occurs when(1 point)Your response:c.individuals, when acting rationally, fail to take advantage of all opportunities for social benefit.(You answered correctly!)Feedback :Learning Objective: Smart for One, Dumb for All principleLevel of Learning: KnowledgeSource: UniqueType: Word Problem1 point awarded.The correct answer is:a. individuals, when acting rationally, benefit society as awhole.b. individuals make better decisions when acting alone thanwhen in groups.c. individuals, when acting rationally, fail to take advantage ofall opportunities for social benefit.d. neither party to a transaction benefits from a trade.e. a market is in equilibrium.24. A shortage occurs when(1 point)Your response:c.quantity demanded exceeds quantity supplied.(You answered correctly!)Feedback :Learning Objective: Calculate excess supply or excess demand Level of Learning: ApplicationSource: UniqueType: Word Problem1 point awarded.The correct answer is:a. demand is greater than supply.b. the equilibrium price is too high.c. quantity demanded exceeds quantity supplied.d. quantity supplied exceeds quantity demanded.e. price is above the equilibrium.25.Reference: 3-15Assume that column A and column B are the initial demand and supply curves. At a price of $30, the market would experience(1 point)Your response:d.excess demand of 45 units.(You answered correctly!)Feedback :Learning Objective: Calculate excess supply or excess demand Level of Learning: ApplicationSource: UniqueType: Calculation Problem1 point awarded.The correct answer is:a. an equilibrium.b. excess demand of 95 units.c. excess supply of 45 units.d. excess demand of 45 units.e. excess supply of 50 units.26.Reference: 3-10What might cause Supply to shift from the Original Supply to the New Supply?(1 point)Your response:b.New technology reduces the amount of coffee beans necessary to make a good-tasting pot of coffee.(You answered correctly!)Feedback :Learning Objective: Economic equilibriumLevel of Learning: ApplicationSource: UniqueType: Graphical Problem1 point awarded.The correct answer is:a. A storm in South America wipes out the entire coffee crop.b. New technology reduces the amount of coffee beansnecessary to make a good-tasting pot of coffee.c. A news report that coffee consumption greatly increasesproductivity.d. An increase in the price of tea.e. An increase in the coffee drinking population.27. This graph shows the original market for plywood in a coastalFlorida town.Reference: 3-5A hurricane has been spotted headed directly toward the town inwhich this market is located. The residents know that the best way to protect themselves is to board up all of their windows. Youwould expect the curve(s) labeled _____ to shift _______(1 point)Your response:a.A; rightwardFeedback :Learning Objective: Shifting the demand curveLevel of Learning: ApplicationSource: UniqueType: Graphical Problem0 points awarded.The correct answer is:a. A; rightwardb. B; rightwardc. A and B; rightwardd. A; leftwarde. B; leftward28. Assume both the demand and the supply of beef decrease. Whichof the following outcomes is certain to occur?(1 point)Your response:d.The equilibrium quantity of beef will fall.(You answered correctly!)Feedback :Learning Objective: Effect of change in demand & supplyLevel of Learning: ApplicationSource: UniqueType: Word Problem1 point awarded.The correct answer is:a. The equilibrium price of beef will rise.b. The equilibrium quantity of beef will rise.c. The equilibrium price of beef will fall.d. The equilibrium quantity of beef will fall.e. Neither the equilibrium price nor the equilibrium quantity ofbeef can be predicted.29.Reference: 3-3At a price of $50, quantity demanded will be(1 point)Your response:e.0.(You answered correctly!)Feedback :Learning Objective: Define a demand curveLevel of Learning: KnowledgeSource: UniqueType: Graphical Problem1 point awarded.The correct answer is:a. 500.b. 400.c. 300.d. 100.e. 0.30.Reference: 3-16In the figure above, if supply were to shift to the left, and demand were to also shift to the left, in the new equilibrium,(1 point)Your response:d.quantity would be lower, but the direction of the price change cannot be determined.(You answered correctly!)Feedback :Learning Objective: Four simple rulesLevel of Learning: ApplicationSource: UniqueType: Graphical Problem1 point awarded.The correct answer is:a. both price and quantity would be lower.b. both price and quantity would be higher.c. price would be higher and quantity would be lower.d. quantity would be lower, but the direction of the pricechange cannot be determined.e. price would be lower but the direction of the quantitychange cannot be determined.31. Which of the following would result in an increase in supply?(1 point)Your response:a.A reduction in the interest payment of the firm's loan.(You answered correctly!)Feedback :Learning Objective: Shifting the supply curveLevel of Learning: ApplicationSource: UniqueType: Word Problem1 point awarded.The correct answer is:a. A reduction in the interest payment of the firm's loan.b. A reduction in the quality of technology used by firms.c. An increase in demand.d. An increase in consumers' incomes.e. An increase in the population of consumers.32.Reference: 3-4At a price of $20,(1 point)Your response:c.there would be excess demand of approximately 25 units.(You answered correctly!)Feedback :Learning Objective: Calculate excess supply or demand. Leve Source: UniqueType: Graphical Problem1 point awarded.The correct answer is:a. the market would be in equilibrium.b. there would be excess supply of approximately 25 units.c. there would be excess demand of approximately 25 units.d. there would be excess demand, but it is impossible to knowby how much.e. There would be excess supply, but it is impossible to knowby how much.33. Minimum wage laws are an example of(1 point)Your response:a.mandated equilibrium wages.Feedback :Learning Objective: Identify price controlsLevel of Learning: ApplicationSource: UniqueType: Word Problem0 points awarded.The correct answer is:a. mandated equilibrium wages.b. a price ceiling.c. a regulated price.d. comparative advantage for unskilled workerse. a centrally planned economy34. As the price of cookies increases, firms that produce cookies will(1 point)Your response:c.decrease the supply of cookies.Feedback :Learning Objective: Change in supply vs quantity supplied Level of Learning: ApplicationSource: UniqueType: Word Problem0 points awarded.The correct answer is:a. increase the supply of cookies.b. increase the quantity supplied of cookies.c. decrease the supply of cookies.d. decrease the quantity supplied of cookies.e. leave their production unchanged.35.Reference: 3-4Now suppose that the government imposes a price ceiling of $40.What is the most likely result?(1 point)Your response:c.The market would reach a new equilibrium at a price of $40.Feedback :Learning Objective: Impact of price controlsLevel of Learning: AnalysisSource: UniqueType: Graphical Problem0 points awarded.The correct answer is:a. Many sellers would go out of business because $40 is abovethe equilibrium.b. There would be no change in the price.c. The market would reach a new equilibrium at a price of $40.d. An underground, or black, market would emerge where thisproduct would be sold at a price above $40.e. There would be excess supply in the market.36. Demand for coffee last Monday is shown in bold (labeledD(Monday)).Reference: 3-6On Tuesday the news featured a story that a storm wiped out the entire coffee crop in Brazil. On Wednesday,(1 point)Your response:e.the demand function remained at D(Monday), but the quantity demanded decreased.Feedback :Learning Objective: Shifting the demand curveLevel of Learning: ApplicationSource: UniqueType: Word Problem0 points awarded.The correct answer is:a. the demand function remained at D(Monday), but thequantity demanded increased.b. demand shifted to D(A) in anticipation of future priceincreases.c. demand shifted to D(B) in anticipation of future priceincreases.d. there would be no change in either the demand function orthe quantity demanded because not enough time hadpassed for the storm's effects to be felt.e. the demand function remained at D(Monday), but thequantity demanded decreased.37. In a capitalist economy(1 point)Your response:c.prices are calculated based on the cost of production plus profit.Feedback :Learning Objective: Central planningLevel of Learning: ComprehensionSource: UniqueType: Word Problem0 points awarded.The correct answer is:a. most of the resources are owned by state, not federal,governments.b. the incomes of poor people must be subsidized.c. prices are calculated based on the cost of production plusprofit.d. shortages of necessary consumer goods are common.e. None of the above is true.38. Suppose the price of doughnuts decreases and doughnut holesare a by-product of producing doughnuts. One would expect(1 point)Your response:d.the quantity supplied of doughnut-holes to increase.Feedback :Learning Objective: Change in demand vs quantity demanded Level of Learning: ApplicationSource: UniqueType: Word Problem0 points awarded.The correct answer is:a. the supply of doughnuts to decrease.b. the quantity supplied of doughnuts to decrease.c. the supply of doughnut-holes to increase.d. the quantity supplied of doughnut-holes to increase.e. the quantity supplied of doughnuts to increase.39. Assume both the demand and the supply of bagels increase.Which of the following outcomes is certain to occur?(1 point)Your response:b.The equilibrium quantity of bagels will rise.(You answered correctly!)Feedback :Learning Objective: Effect of change in demand & supplyLevel of Learning: ApplicationSource: UniqueType: Word Problem1 point awarded.The correct answer is:a. The equilibrium price of bagels will rise.b. The equilibrium quantity of bagels will rise.c. The equilibrium price of bagels will fall.d. The equilibrium quantity of bagels will fall.e. Neither the equilibrium price nor the equilibrium quantity ofbagels processors can be predicted.40. A regulated maximum price that is above the equilibrium price(1 point)Your response:c.will lead to excess supply in the market.Feedback :Learning Objective: Impact of price controlsLevel of Learning: ComprehensionSource: UniqueType: Word Problem0 points awarded.The correct answer is:a. will lead to black markets.b. will have no effect on the market.c. will lead to excess supply in the market.d. will lead to excess demand in the market.e. Both (a) and (d) are true.41. As the price of a good rises,(1 point)Your response:b.more firms can cover their opportunity costs of producing the good.(You answered correctly!)Feedback :Learning Objective: Define a supply curveLevel of Learning: ComprehensionSource: UniqueType: Word Problem1 point awarded.The correct answer is:a. firms earn larger profits.b. more firms can cover their opportunity costs of producingthe good.c. firms find they can raise price by even more.d. consumers become more willing to purchase the good.e. government regulation becomes more justified.42. Assuming consumers eat either rice or pasta for dinner everynight. If the price of rice increases, in the pasta market one would expect to see(1 point)Your response:a.increase in the quantity of pasta demanded.Feedback :Learning Objective: Shifting the demand curveLevel of Learning: ApplicationSource: UniqueType: Word Problem0 points awarded.The correct answer is:a. increase in the quantity of pasta demanded.b. increase in the demand for pasta.c. decrease in the quantity of pasta demanded.d. decrease in the demand for pasta.e. indeterminate change in the pasta market.43.Reference: 3-17Assume demand remains unchanged at D1. If supply shifts from S1 to S2 then the equilibrium price will ________ and theequilibrium quantity will __________.(1 point)Your response:d.fall; rise(You answered correctly!)Feedback :Learning Objective: Four simple rulesLevel of Learning: ApplicationSource: UniqueType: Graphical Problem1 point awarded.The correct answer is:a. rise; fallb. rise; risec. fall; falld. fall; risee. rise; be indeterminate44. Shelly purchases a leather purse for $400. One can infer that(1 point)Your response:b.her reservation price was at least $400.(You answered correctly!)Feedback :Learning Objective: Buyer's Reservation priceLevel of Learning: ApplicationSource: UniqueType: Word Problem1 point awarded.The correct answer is:a. she paid too much.b. her reservation price was at least $400.c. her reservation price was exactly $400.d. her reservation price was less than $400.e. she paid too little.45. Sellers tend to offer _______ for sale as price increases, and so thesupply curve is ______ sloping.(1 point)Your response:e.more; upward(You answered correctly!)Feedback :Learning Objective: Define a supply curveLevel of Learning: ComprehensionSource: UniqueType: Word Problem1 point awarded.The correct answer is:。