5 Econ 100 Questions

1.

The law of supply states that there is relationship between the price and . Thus, as the price increases, . According to the law of supply, as the price of the good increases, it causes The graph below describes the current market conditions in a local market for apples. 20- S 16- 12- Price per carton D 10 20 30 50 Thousands of cartons per week At a price of $8 per carton, there will be a of per week. This will cause the price to As the price it will cause the and + moving the market closer to equilibrium.The relationship between the price of music CD3 and the quantity supplied and demanded is given below: Price Quantity Demanded Quantity Supplied $ 9 100 million 40 million 510 90 million 60 million 511 80 million 80 million 512 70 million 100 million 513 60 million 120 million If the industry price is $10, there is a equal to El million CD3. The graph below describes the current (original) market conditions in the frozen orange juice market. Price per case [I 20 40 BO 80 Cases {Thousands of cases per week) Suppose the following event happens in this market: New studies find that the consumption of frozen orange juice will improve a person's memory. Predict the effect of this event on the equilibrium price and equilibrium quantity of frozen orange juice. Answer: As a result of this event, the for frozen orange juice will resulting in the curve to The college bookstore finds that when it prices shirts emblazoned with its college logo at $12.05, it sells 209 per day. When the price is reduced to 9.75, it sells 258 per day. Based on this information find the price elasticity of demand for logo-emblazoned shirts. Work with 6 decimal places and round your final answer to 2 decimal places, if necessary. Do not enter the comma "," or a dollar sign ($) while entering your