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Chapter 3: Q. c - For Critical Thinking (page 57)
What has happened to the position of the U.S. market demand curve for
chewing gum?Explain briefly.
A change in preferences of consumers led to fall in demand.
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Consider the market for cable-based Internet access
service,which isanormal good.Explain whether
the following events would cause an increase ora
decrease in demand or an increase oradecrease in
the quantity demanded.
a.Firms providing wireless(an alternative to cable)
Internet access services reduce their prices.
b.Firms providing cable-based Internet access
services reduce their prices.
e.There isadecrease in the incomes earned by con
sumers of cable-based Internet access services.
d.Consumers'tastes shift away from using wire
less Internet access in favor of cable-based
Internet access services.
If the price of flash memory chips used in manufacturing smartphones decreases, what will happen in the market for smartphones? How will the equilibrium price and equilibrium quantity of smartphones change?
What are the effects of a price decrease from \(4 per portable power bank to \)2 per portable power bank on the quantities of portable power banks demanded by buyer 1 and by buyer 2 individually and combined?
In the market for portable power banks(a normal good), explain whether the following events would cause an increase or a decrease in demand or an increase or decrease in the quantity demanded. Also, explain what happens to the equilibrium quantity and the market-clearing price.
a. There is an increase in the price of carry cases for portable power banks.
b. There is a decrease in the price of devices used to charge portable power banks.
c. There is an increase in the number of consumers of portable power banks.
d. A booming economy increases the income of the typical buyer of portable power banks.
e. Consumers of portable power banks anticipate that the price of this good will decline in the future.
Identify which of the following would generate a decrease in the market demand fore-book readers, which are a normal good.
a. An increase in the price of downloadable apps utilized to enhance the thee-book reading experience, which are complements.
b. An increase in the number of consumers in the market fore-book readers.
c. A decrease in the price of tablet devices, which are substitutes.
d. Areduction in the incomes of consumers of e-book readers.
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