Macroeconomics
21st Edition
ISBN: 9781259915673
Author: Campbell R. McConnell, Stanley L. Brue, Sean Masaki Flynn Dr.
Publisher: McGraw-Hill Education
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Question
Chapter 3, Problem 1RQ
To determine
Match the changes with given scenario.
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What effect will each of the following have on the demand for small automobiles such as the Mini Cooper and Smart car? a. Small automobiles become more fashionable.b. The price of large automobiles rises (with the price of small autos remaining the same).c. Income declines and small autos are an inferior good.d. Consumers anticipate that the price of small autos will greatly come down in the near future.e. The price of gasoline substantially drops.
What effect will each of the following have on the demand for small automobiles such as the Mini-Cooper and Fiat 500? a. Small automobiles become more fashionable. b. The price of large automobiles rises (with the price of small autos remaining the same). c. Income declines and small autos are an inferior good. d. Consumers anticipate that the price of small autos will greatly come down in the near future. e. The price of gasoline substantially drops.
Imagine that the table shows the quantity demanded of
UGG boots at five different prices in 2021 and in 2022.
Which of the following variables could cause the demand
for UGG boots to change as indicated from 2021 to 2022?
(Check all that apply.)
A. The expectation that UGG boots will rise in price.
B. A decrease in buyer incomes.
C. An increase in the price of UGG boots.
D. An increase in the price of a complementary
good.
Price
$160
170
180
190
200
Quantity
Demanded
2021
8,000
7,500
7,000
6,500
6,000
Quantity
Demanded
2022
7,000
6,500
6,000
5,500
5,000
Chapter 3 Solutions
Macroeconomics
Ch. 3.6 - Prob. 1QQCh. 3.6 - Prob. 2QQCh. 3.6 - Prob. 3QQCh. 3.6 - Prob. 4QQCh. 3.A - Prob. 1ADQCh. 3.A - Prob. 2ADQCh. 3.A - Prob. 3ADQCh. 3.A - Prob. 4ADQCh. 3.A - Prob. 5ADQCh. 3.A - Prob. 6ADQ
Ch. 3.A - Prob. 7ADQCh. 3.A - Prob. 1ARQCh. 3.A - Prob. 2ARQCh. 3.A - Prob. 3ARQCh. 3.A - Prob. 4ARQCh. 3.A - Prob. 5ARQCh. 3.A - Prob. 6ARQCh. 3.A - Prob. 1APCh. 3.A - Prob. 2APCh. 3.A - Prob. 3APCh. 3 - Prob. 1DQCh. 3 - Prob. 2DQCh. 3 - Prob. 3DQCh. 3 - Prob. 4DQCh. 3 - Prob. 5DQCh. 3 - Prob. 6DQCh. 3 - Prob. 7DQCh. 3 - Prob. 8DQCh. 3 - Prob. 1RQCh. 3 - Prob. 2RQCh. 3 - Prob. 3RQCh. 3 - Prob. 4RQCh. 3 - Prob. 5RQCh. 3 - Prob. 6RQCh. 3 - Prob. 7RQCh. 3 - Prob. 8RQCh. 3 - Prob. 9RQCh. 3 - Prob. 1PCh. 3 - Prob. 2PCh. 3 - Prob. 3PCh. 3 - Prob. 4PCh. 3 - Prob. 5PCh. 3 - Prob. 6PCh. 3 - Prob. 7P
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Similar questions
- What is the law of demand and how does it explain consumer behavior in response to changes in the price of a good or service?arrow_forwardWhat effect will each of the following have on the demand for small automobiles such as the Mini-Cooper and Fiat 500? a. Small automobiles become more fashionable: (Click to select) Increase Decrease Cannot be determined No change . b. The price of large automobiles rises (with the price of small autos remaining the same): (Click to select) Increase Decrease Cannot be determined No change . c. Income declines and small autos are an inferior good: (Click to select) No change Increase Cannot be determined Decrease . d. Consumers anticipate that the price of small autos will greatly come down in the near future: (Click to select) Increase Cannot be determined No change Decrease . e. The price of gasoline substantially drops: (Click to select) Increase Decrease Cannot be determined No change .arrow_forwardAssume that imitation gemstones (an inferior good) are a low-cost alternative to diamonds (a normal good). What happens when average incomes increase? A. The demand for diamonds increases, and the demand for imitation gemstones decreases. B. The demand for diamonds decreases, and the demand for imitation gemstones increases. C. The demand for both diamonds and imitation gemstones increases. D. The demand for both diamonds and imitation gemstones decreases.arrow_forward
- Imagine that the table shows the quantity demanded of UGG boots at five different prices in 2021 and in 2022. Which of the following variables could cause the demand for UGG boots to change as indicated from 2021 to 2022? (Check all that apply.) A. The expectation that UGG boots will fall in price. B. A decrease in the price of UGG boots. C. An increase in the number of buyers. D. A decrease in the price of a complementary good. A Price $160 170 180 190 200 Quantity Demanded 2021 8,000 7.500 7,000 6,500 6,000 Quantity Demanded 2022 9,000 8,500 8,000 7,500 7,000arrow_forwardWhat effect will each of the following have on the demand for small automobiles such as the Honda Civic or Ford Focus? D. Consumers anticipate that the price of small autos will greatly come down in the near future. E. The price of gasoline substantially drops.arrow_forwardSuppose that the consumers expect the price of phones to be $100 per unit next year. A news report comes out that claims phones will be only $50 per unit next year. Assuming there is no change in supply currently, which of the following will happen to the current equilibrium price and quantity of phones? a. Price of phones rises. Quantity of phones rises. b. Price of phones rises. Quantity of phones falls. c. Price of phones falls. Quantity of phones rises. d. Price of phones falls. Quantity of phones falls. e. Price of phones changes in an uncertain direction. Quantity of phones rises.arrow_forward
- Equilibrium is achieved when quantity demanded intersect with quantity supplied. Assume aproduct “Mobile Phone” for which supply and demand shifts. You are required to prepare graphs of each situation given below?a. Increase in income: Mobile Phone is a normal good.b. Increase in income: Mobile Phone is an inferior good.c. Decrease in the price of a substitute for Mobile Phone.d. Decrease in the price of a complement for Mobile Phone.e. Increase in the cost of production of Mobile Phone.f. Decrease in the cost of production of Mobile Phone.arrow_forwardsuppose 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_forwardDescribe how each of the following will affect the demand for personal computers:a. A rise in income (assuming that computers are a normal good)b. A lower expected price for computersc. Cheaper softwared. Computers that are simpler to operatearrow_forward
- Exercise 3. Tablets and laptops are substitutes. Due to manufacturer related issues, there is a deep shortage of tablet-specific parts. What would you expect to happen to the market (prices, supply, demand, quantity sold) shortly after the parts shortage in for each of the following products: Tablets? Laptops? You can answer each point above with a labeled graph or explain in words, taking into account the differences between a change in the demand (curve) and a change in quantity demanded.arrow_forwardPepsi and burger are complements because they are often enjoyed together. When the price of pepsi rises, what happens to the supply, demand, quantity supplied, quantity demanded, and the price in the market for burgers.arrow_forwardA rise in the price of a crate of Pepsi from USD 20 to USD 30 results in a fall in the quantity of crate of Pepsi demanded from 220 million to 180 million a day and at today’s price of a Coca-Cola, USD 15, the quantity of Coca-Cola demanded increases from 80 million to 100 million a day. a). Calculate the percentage change in the price of a crate of Pepsi and the percentage change in the quantity demanded of Pepsi. Use the average price and average quantity. b). Calculate the price elasticity of demand for Pepsi. c). Is the demand for Pepsi elastic or inelastic? Explain please d). Calculate and explain the cross elasticity of demand for Coca-cola with respect to the price of a Pepsi.arrow_forward
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