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  3. Liberty ECON 213 Problem Set Ch. 3 Answers Complete Solutions

Liberty ECON 213 Problem Set Ch. 3 Answers Complete Solutions

 

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When consumers purchase cars, they also often purchase cleaning products to take care of the car. As the price of a car falls, the demand for cleaning products shifts to the right. This means cars and cleaning products are

Prescription drugs are often available in two versions — a name brand and a generic brand. As the price of the name brand falls, the price change

You are an owner of a restaurant, and you meet with other neighborhood restaurant owners. Consider that restaurant meals and meals at home are substitutes. In an attempt to increase sales, you collectively decide to lower prices by 10%. Which of the following are consequences of this price change?

The market for streaming-music services contains only a few major producers. If more streaming-music service producers enter the market, what will happen?

Choose one or more: A. Individual sellers will have more control over the market. B. There will be a greater quantity of streaming-music services available in the market. C. The market will become more competitive and the price will fall. D. The market will become more competitive and the price will rise.

Suppose that many people who earn a living catching fish decide they can make more money selling honey and switch occupations. How will this change affect the number of fish supplied by producers?

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Imagine an illness with two cures—drug X and drug Y. Drug X and drug Y are both made by the same firm. Two events recently happened. First, a study was released showing that drug X is less effective than drug Y. Second, the ingredients used to produce drug X increased in price. What are the consequences of these events?

Choose one: A. The demand for drug X shifts to the left, and the supply curve for drug X shifts to the left. The result is a rise in the equilibrium price for drug X and a fall in the equilibrium quantity of drug X. B. The demand for drug X shifts to the right, and the supply curve for drug X shifts to the left. The result is an unknown change in the equilibrium price for drug X and a fall in the equilibrium quantity of drug X. C. The demand for drug X shifts to the left, and the supply curve for drug X shifts to the left. The result is an unknown change in the equilibrium price for drug X and a fall in the equilibrium quantity of drug X. D. The demand for drug X shifts to the right, and the supply of drug X shifts to the left. The result is a rise in the equilibrium price for drug X and a fall in the equilibrium quantity of drug X.

If the price of postage goes up and there are no other changes, what is the consequence?

Choose one: A. The demand for the magazine shifts to the right, and the supply curve shifts to the left. The equilibrium price rises, but there is an unknown change in the equilibrium quantity. B. The demand for the magazine does not change, and the supply curve shifts to the right. The equilibrium price falls, but the equilibrium quantity rises. C. The demand for the magazine shifts to the left, and the supply curve shifts to the right. The equilibrium price falls, but there is an unknown change in the equilibrium quantity. D. The demand for the magazine does not change, and the supply curve shifts to the left.

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