Question 1 (11 marks): Suppose that in a recent market period, the following relationship existed between the price of tablet devices and the quantity supplied and quantity demanded:

Quantity Demanded Quantity Supplied Price (millions) (millions) $330 100 40 $340 90 60 $350 80 80 $360 70 100 $370 60 120\fEconomics in Your Life Space-Constrained Restaurants Discover That Customers Care about Quality-Adjusted Lunch Prices Blaine Hurst is the president of Panera Bread, a company innovations cut the average customer wait time at Panera that operates more than 2,000 small restaurants in the Bread from 8 minutes to 1 minute. As a consequence, the United States and Canada offering basic soup-and- total quantity of meals demanded by the company's cus- sandwich meals to people taking short lunch or dinner tomers increased. breaks. Shortly after Hurst's appointment to his position, the quantity of restaurant lunches demanded decreased. Panera Bread was among many soup-and sandwich firms For Critical Thinking that consequently experienced a decline in sales. Did the decline in the quality-adjusted price of soup-and- Hurst quickly recognized that a fundamental problem was sandwich lunches offered by Panera Bread and other soup- that customers of a typical Panera Bread outlet were spending and-sandwich restaurant chains generate a rightward shift in lengthy intervals of time in lines to place orders at counters the demand curve or a downward movement along that staffed by only a couple of employees. Naturally, the extra time curve? Explain. that customers spend waiting in long lines is valuable to those consumers, so this waiting time had pushed up the quality- adjusted price of each meal. The result was a decrease in the Real Application quantity of restaurant lunches sold by the company. As a future entrepreneur or manager, what lesson can you Hurst responded by introducing self-order kiosks and learn from the actions of this real-world manager? an online facility for accepting remote digital orders. TheseThere is an increase in the price of carrying cases for wireless earbuds. There is a decrease in the price of devices used to charge Wireless earbuds. There is an increase in the number of consumers of wireless earbuds. A booming economy increases the income of the typical buyer of wireless earbuds. Curve effected (Demand or Supply) Increase / decrease or No change Resultant equilibrium (Change in P* and Q*) Consumers of wireless earbuds anticipate that the price of this _ood will decline in the future