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Economics 201 - Changes in Demand and Supply

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Question;Economics 201;Problem Set 2;Changes in Demand and Supply;1. There is a decrease in the price of a pair of blue jeans. What effect would this have on the demand curve for blue jeans?;2. There is a decrease in consumer incomes. As a result of this decrease in consumer incomes, the demand curve for smart phones shifts to the left. In other words, there is a decrease in the demand for smart phones. On the basis of this information, what can we say about the market for smart phones?;3. Assume that apples and bananas are substitutes. There is an increase in the price of apples. As a result, what will happen in the market for bananas?;4. Which of the following will lead to an increase in the demand for ibuprofen (i.e., a rightward shift in the demand for ibuprofen)?;5. Assume that peanut butter and jelly are complements. The price of peanut butter decreases. As a result of the increase in the price of peanut butter, what will happen in the market for jelly?;6. Assume that diamond earrings are a normal good. There is an increase in consumer incomes. As a result of the increase in incomes, what will happen in the market for diamond earrings?;7. Silk is an important input in the production of silk neckties. There is an increase in the price of silk. As a result of the increase in the price of silk, what happens in the market for silk neckties?;8. Which of the following will lead to a decrease in the demand for print cartridges (i.e., a leftward shift in the demand curve for print cartridges)?;9. Which of the following would be expected to shift the supply curve for hand sanitizer to the right?;10. As a result of a hurricane, several refineries are damaged, and are temporarily unable to produce gasoline. Thus it could be said that the technology of producing gasoline has deteriorated. This could be characterized as;11. Buyers come to believe that the price of kumquats will increase one week from today. What will this do to the market for kumquats this week?;12. Milk is an important input in the production of butter. There is a decrease in the price of milk. As a result of the decrease in the price of milk, what will happen in the market for butter?;13. Fezmicks are an inferior good. There is an increase in the incomes of fezmick consumers. As a result, what will happen in the market for fezmicks?;14. Which of the following would be expected to shift the supply curve for cellular phones to the left?;15. The price of good A decreases. As a result, the demand for good B increases (i.e., the demand curve for good B shifts to the right). On the basis of this information, what can we say about good A and good B?;16. The price of good X increases. As a result, the supply for good Y decreases (i.e., the supply curve for good Y shifts to the left). On the basis of this information, what can we say about good X and good Y?;17. A new technology makes it possible to produce more flat-screen televisions, without using any more inputs. As a result of this technological improvement, what will happen in the market for flat-screen televisions?;18. In Lower Slobbovia, the price of a zizwomp is $10. But then the government of Lower Slobbovia issues a law saying that it is illegal to buy or sell zizwomps for more than $5. The government of Lower Slobbovia is well known for its brutality, and it is generally believed that anyone caught violating the law will be shot. As a result of this price control, what will happen in the market for zizwomps in Lower Slobbovia?;19. The price of good J decreases. As a result, the demand for good K decreases (i.e., the demand curve for good K shifts to the left). On the basis of this information, what can we say about good J and good K?;20. In Spartyland, there are 10 taco restaurants. Now, 5 new taco restaurants open. As a result of the increase in the number of sellers, what happens in the market for restaurant tacos in Spartyland?

 

Paper#57711 | Written in 18-Jul-2015

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