1. The price of printers at the big box tech stores increases as a new type of p
ID: 1153868 • Letter: 1
Question
1. The price of printers at the big box tech stores increases as a new type of print tech is rolled out to consumers. which of the follwoing scenario for a complementary printer good would likely take place?
A- the demand for printer ink decreases as less people are buying printers
B- the demand for printer paper rises as pepole stock up
2. in a market with an upward sloping supply curve and a downward slopng demand curve, when there is an excess supply:
A- the actual price must be higher than the equilibrium price
B- the quantity demanded is higher than the equilibrium quantity
3. the government began to implement higher cigarette taxes because of a study that linked them to heart disease, they also put restrictions that increased the cost of doing business for major cigarette companies. How would you expect supply, demand, and the equilibrium price and quantity to change?
A- the demand for cifs would decrease while supple shifts leftwards. As a result the equil. quantity decreases while equil price is impossible to determine with the given info.
B- the demad for cigs would decrease while supply shifts right. As a result, the equil. price decreases while equil. quantity is impossible to determine with the given info.
4. Holiday sales are beginning. To remain competitive, ice scrapers manufacturers are doing a buy 2 get 1 free sale on black friday. What efect will this have on the ice scraper market?
A- the price change will decrease the quantity demanded.
B- the price descrease will increase the quantity demanded.
Explanation / Answer
1. The price of printers is increased which will reduce its quantity demanded. Consumers will demand fewer complements associated with printers so that their demand will also fall. Hence A is true where demand for ink for printer will decrease.
2. There is an excess supply only when the quantity demanded is less and quantity supplied is more. This implies that market price is lower than current price. Option A is true.
3. Option A because both demand and supply will decrease. While quantity is going to decrease because both shifts will decrease quantity, price is increased due to supply shift and decreased due to demand shift.
4. Sales are increasing so supply is increased, Prices will fall and quantity will rise. Option A.
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.