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  3. Liberty ECON 213 InQuizitive Ch. 3 Answers Complete Solutions

Liberty ECON 213 InQuizitive Ch. 3 Answers Complete Solutions

 

Complete many different versions to get an A on your grade!

Which items represent examples of Adam Smith’s “invisible hand” at work?

A tailor who makes suits for clients by hand buys his own suits off the rack.

An auto manufacturer uses imported leather for the seats in its vehicles.

A cafe owner discards expired food, to avoid a fine from the health department.

A gas station owner closes on certain days of the year, for religious reasons.

Consider the demand schedule for salmon in a market with two consumers, Derek and Meredith: What is the quantity demanded by the market at a price of $12.50 per pound?

Consider the following demand and supply schedules for coffee. What is the price when the market is in equilibrium?

“Shortage” and “scarcity” mean the same thing.

Suppose that a factory’s supply curve is shown by the yellow line labeled S1. The workers threaten to go on strike, and the factory owner agrees to increase their wages. Show the impact on supply after the wages go up by clicking on the appropriate curve. If there is no shift, select S1.

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20.

Match each shifter of demand with an example. Jack is fired from his management job and takes a job as a clerk. Rumors circulate about coming price cuts on a popular electronic device. Lowered price on a smartphone drives up demand on accessories for that phone. A stylish new electric car with impressive performance changes consumer perceptions about electric vehicles.

21.

One autumn, the weather is perfect for growing pumpkins, and the pumpkin crop is much larger than usual. Meanwhile, when Halloween approaches, jack-o’-lanterns turn out to be less popular than in prior years. Instead, consumers spend more on costumes. What will happen to the price of pumpkins around Halloween, compared with last year?

26.

“Shortage” and “scarcity” mean the same thing.

12.

Suppose that both the number of buyers and the number of sellers increase. Which of the following will occur?

13.

Fill in the blanks to complete the following sentence. Suppose that Seattle’s city government decides to increase the minimum wage for coffee shop baristas. This would the supply of coffee by altering the

14.

Suppose that the supply of automobiles is given by the equation P= -5000 + 2000Q where P is the price in dollars and Q is the quantity of cars. At a price of $23,000 each, how many cars will be supplied?

15.

Suppose the government believes that there are too many cigarettes in the market. Which of the following policies could the government implement to decrease the supply of cigarettes? a) tax the tobacco crop b) tax consumers on the purchase of cigarettes c) subsidize tobacco farmers, thus lowering the price of tobacco d) tax the manufacturing of cigarettes

16.

Fill in the blanks to complete the statement about the demand for eggs. Suppose the price of eggs decreases from $5 per dozen to $4 per dozen. According to the law of , we should expect the to increase.

17.

Suppose there are seven coffee shops located on the same busy street. If two of the coffee shops close, which of the following will occur, holding all else fixed? a) the price of coffee will increase b) the supply of coffee will decrease c) the demand for coffee will decrease d) the supply of coffee will increase, since the remaining shops will sell more than before

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