John Doe
Econ 2020.01
February 4, 2018
Microeconomics Assignment # 1
P. 66
1.
a. The demand for Mini-Cooper’s and Fiat 500’s will increase.
b. The demand for Mini-Cooper’s and Fiat 500’s will increase.
c. The demand for Mini-Cooper’s and Fiat 500’s will decrease.
d. The demand for Mini-Cooper’s and Fiat 500’s will decrease.
e. The demand for Mini-Cooper’s and Fiat 500’s will increase.
2. True
P. 67
4.
a. EQ. Price: Increase
EQ. Quantity: Decrease
b. EQ. Price: Decrease
EQ. Quantity: Decrease
c. EQ. Price: Decrease
EQ. Quantity: increase
d. EQ. Price: Indeterminate
EQ. Quantity: Increase
e. EQ. Price: Increase
EQ. Quantity: Increase
f. EQ. Price: Decrease
EQ. Quantity: Indeterminate
g. EQ. Price: Increases
EQ. Quantity: Indeterminate
h. EQ. Price: Indeterminate
EQ. Quantity: Decrease
P. 74
1.
a. Equilibrium price will increase for oranges
b. Equilibrium price will decrease for oranges.
2.
c. The equilibrium price may rise or fall but the equilibrium quantity will rise
for certain.
P. 75
3.
a. The max capacity of the stadium is 60,000 people since the quantity the
stadium supplies is constant at 60,000.
b. If the preset price was $45 which means the demand is still higher than
the supply of tickets for seats in the stadium, therefore a secondary market for
ticket could possibly form and the ticket prices would be higher than that of the
original price since 10,000 people will not be able to see the game, those who are
willing to pay more than the preset price for secondary tickets to make sue they can
see the game.
c. The event would not sell out as the supply is constant at 60,000 tickets
and demand for the tickets is now down to 50,000 people at $45 so at max 50,000
would attend the event. In order for the stadium to sellout they would need to drop
there prices to $25 a ticket thus increasing the demand for tickets allowing the
stadium to be sold out.