Question 1

What happens to the demand of chicken if

1)The price of beef increases?

2)The price of potatoes decreases?

3)The price of chicken increases?

4)Consumers' income increases?

Question 2

For each of the following markets, find the equilibrium price and quantity.

a)and

b)and

Question 3

Timber beams are made from logs and in the process of making beams the mill produces sawdust, which is made into pressed wood. In the market for timber beams, the following events occur once at a time.

1-The wage rate of sawmill workers rises.

2-The price of sawdust rises.

3-The price of a timber beam rises.

4-The price of a timber beau is expected to rise next year.

5-Environmentalists convince Parliament to introduce a new law that reduces the amount of forest that can be cut for timber products.

6-A new technology lowers the cost of producing timber beams.

a)Explain the effect of each on the supply of timber beams.

b)Does any event (or events) illustrate the law of supply?

Question 1

What happens to the demand of chicken if

1)The price of beef increases?

2)The price of potatoes decreases?

3)The price of chicken increases?

4)Consumers' income increases?

Question 2

For each of the following markets, find the equilibrium price and quantity.