Tutorial Sheet 2
BUYER
WILLINGNESS TO PAY
MIKE
$50.00
SANDY
$30.00
JONATHAN
$20.00
HALEY
$10.00
1. Refer to Table 3-1. If the table represents the willingness to pay of four buyers and the price of the product is $15, then who would be willing to purchase the product? a. Mike b. Mike and Sandy c. Mike, Sandy, and Jonathan d. Mike, Sandy, Jonathan, and Haley
Use the figure below to answer the following question(s).
Figure 3-3
2. In Figure 3-3, if the initial demand for margarine were D1, the impact of an increase in the price of margarine from $0.35 to $0.40 per pound on consumer purchases would be illustrated as a. a shift in the demand curve to D2. b. a shift in the demand curve to D3. c. a movement upward to the left along the original demand curve D1. d. none of the above.
3. In Figure 3-3, if the initial demand for margarine were D1, the impact of a decrease in the price of butter, a substitute good for margarine, would be illustrated as a. a shift in the demand curve to D2. b. a shift in the demand curve to D3. c. a movement downward to the right along the original demand curve D1. d. none of the above.
Use the figure below to answer the following question(s).
Figure 3-8
4. In Figure 3-8, if the initial demand and supply for soybeans were D1 and S1, how would a decrease in the cost of producing soybeans affect the market for soybeans? a. Demand would increase to D2, price would increase to P2, and the quantity would increase to S. b. Supply would increase to S2, price would decrease to P0, and the quantity would increase to S. c. Both demand and supply would increase so the price would remain at P1, but the quantity would increase to T. d. None of the above would occur.
Use the figure below to answer the following question(s).
Figure 3-9
5. In Figure 3-9, if D and S represent the demand and supply for gasoline, what is the equilibrium price and quantity? a. price, $1; quantity, 20 b. price, $2; quantity, 30 c.
WILLINGNESS TO PAY
MIKE
$50.00
SANDY
$30.00
JONATHAN
$20.00
HALEY
$10.00
1. Refer to Table 3-1. If the table represents the willingness to pay of four buyers and the price of the product is $15, then who would be willing to purchase the product? a. Mike b. Mike and Sandy c. Mike, Sandy, and Jonathan d. Mike, Sandy, Jonathan, and Haley
Use the figure below to answer the following question(s).
Figure 3-3
2. In Figure 3-3, if the initial demand for margarine were D1, the impact of an increase in the price of margarine from $0.35 to $0.40 per pound on consumer purchases would be illustrated as a. a shift in the demand curve to D2. b. a shift in the demand curve to D3. c. a movement upward to the left along the original demand curve D1. d. none of the above.
3. In Figure 3-3, if the initial demand for margarine were D1, the impact of a decrease in the price of butter, a substitute good for margarine, would be illustrated as a. a shift in the demand curve to D2. b. a shift in the demand curve to D3. c. a movement downward to the right along the original demand curve D1. d. none of the above.
Use the figure below to answer the following question(s).
Figure 3-8
4. In Figure 3-8, if the initial demand and supply for soybeans were D1 and S1, how would a decrease in the cost of producing soybeans affect the market for soybeans? a. Demand would increase to D2, price would increase to P2, and the quantity would increase to S. b. Supply would increase to S2, price would decrease to P0, and the quantity would increase to S. c. Both demand and supply would increase so the price would remain at P1, but the quantity would increase to T. d. None of the above would occur.
Use the figure below to answer the following question(s).
Figure 3-9
5. In Figure 3-9, if D and S represent the demand and supply for gasoline, what is the equilibrium price and quantity? a. price, $1; quantity, 20 b. price, $2; quantity, 30 c.