Days of sunshine a 10K race Fastest time for Age 0 Bushels of corn per acre FIGURE 1 1A.4 The following table shows the relationship between the price of airline tickets from London to New York and the number 1A.5 of passengers. a. Is the relationship between the price of airline tickets Price from London to Los Angeles and the number of pas- per sengers a positive relationship or a negative relationship? unit Explain. b. Plot the data from the table on a graph, draw a line 34 through the points, and calculate the slope of the line. Price Number of of air passengers tickets (Million) Month $300 120 June $500 200 July $800 320 August $600 240 September $450 180 Octoberprestigious s hips, awarded to selected foreign students for postgraduate studies at the University of OF GO Oxford. A Rhodes Scholarship covers all university and LEARNIN college fees, offers a personal stipend, and airfare for a way com round trip to Oxford. Suppose you are selected as one of produce the recipients of this scholarship in 2017. Would you face any type of economic cost, discussed in the chapter, if 2.1 [ you attend the program in 2017? 1.12 Punting is arguably more popular in Cambridge and Oxford than in any other region of the United Kingdom. During the warmer seasons, it is common 2.2 to see rivers filled with punts-a flat-bottomed boat, square at both ends, propelled by a long pole. Punting to Grantchester and back, with a lunch stop at a pleas- ant Grantchester pub, is a popular summer activity for Cambridge students. Taking into consideration that Cambridge and Oxford are more than a hundred kilometers away from any medium-sized or large cities, what might be an economic explanation f- pulality of putting in tiese university cities? 1.13 The nation of Billabong is able to produce surfboards and kayaks in combinations represented by the data in the fol- lowing table. Each number represents thousands of units. Plot this data on a production possibilities graph and explain why the data shows that Billabong experiences increasing opportunity costs. A B C D E Surfboards 0 20 40 60 80 Kayaks 28 24 18 10 0 1.14 Explain how each of the following situations would affect a nation's production possibilities curve. a. A group of vocational schools are established for training low-skilled adults. b. An unexpected drought hits the rural areas of a country.a. Draw supply and demand curves for the emergency ser. vices in private and public hospitals. Draw one graph for type of hospitals. b. Is there a pricing policy that would have filled the capacity of the private hospital? c. The price system does not work to ration the emergency services in public hospital. How do you know? How do you suppose the tickets were rationed? 5.3 Do you agree or disagree with each of the following statements? Briefly explain your answers and illustrate each with supply and demand curves. a. The price of a good rises, causing the demand for another good to fall. Therefore, the two goods are substitutes. b. A shift in supply causes the price of a good to fall. The shift must have been an increase in supply. uring 2009, incomes fell sharply for many Americans. This change would likely lead to a decrease in the prices of both normal and inferior goods. d. Two normal goods cannot be substitutes for each other. e. If demand increases and supply increases at the same time, price will clearly rise. f. The price of good A falls. This causes an increase in the price of good B. Therefore, goods A and B are complements. 5.4 In July 2015, Beijing was selected by the International Olympic Committee as the host city of the 2022 Winter Olympics. The Beijing government is implementing several projects that will affect the demand and supply of the winter sport facilities. A variety of winter sports facilities will be built in Beijing for citizens to use. In the meanwhile, the city has implemented several promo- tional programs in schools, business districts and parks to encourage people to join winter sports. Are these two actions at odds with the goal of encouraging people's participation in winter sports? As part of your answer, illustrate graphically the effects of both actions on the market for winter sport facilities. .5 During the period 2003tice on p. 99] The growing popularity of quinoa has had an impact on the market for brown rice. With its higher fiber, protein, and iron content, quinoa is replacing brown rice as a staple food for many health-conscious individuals. Draw a supply and demand graph that shows how this increase in demand for quinoa has affected the market for brown rice. Describe what has happened to the equilibrium price and quantity of brown rice. What could brown rice producers do to return the price or quantity to the initial equilibrium price or quantity? Briefly explain if it is pos- sible for brown rice producers to return both the price and quantity to the initial equilibriums without a change in consumer behavior. 5.11 The following table represents the market for solar wireless keyboards. Plot this data on a supply and demand graph and identify the equilibrium price and quantity. Explain what would happen if the market price is set at $60, and show this on the graph. Explain what would happen if the market price is set at $30, and show this on the graph. Quantity Quantity Price Demanded Supplied $ 10.00 28 20.00 24 30.00 20 40.00 16 50.00 12 60.00 8 15 18 70.00 5.12 [Related to the Economics in Practice on p. 100] Analyst 1 suggested that the demand curve for newspapers in Baltimore might have shifted to the right because people were becoming more literate. Think of two other plausible stories that would result in this demand curve shifting to the right. ese exercises online and get instant data are marked with artThe Questions below are from your course textbook , K. Case, R. Fair and S. Oster, Principles of Economics, 12th edition, Prentice Hall. Chapter 1 Page 55 , 1A.4 Chapter 2 Page 75 , 1.13 Chapter 3 Page 104 , Q 5.3 (a , b ) Page 105 , Q 5.11 Chapter 5 Using the midpoint formula calculate the price elasticity for the below changes in demand P P. Q Demand for $7.00 per $6.00 per pound 700 pounds per 1,200 pounds a. Nuts pound month per month b. Gaming device $80 $120 70 per year 65 per year