Supply and Demand Help?

Question

5. If both the demand and supply curves shift equal distances rightward, the equilibrium price rises. (true or false)

6. A rise in the price of popcorn shifts the demand curve for popcorn rightward.(true or false)

7. New technology for manufacturing computer chips is developed. The new technology will

1. contribute to cheaper production of computer chips

2. contribute to a decrease in the supply of computer chips

3. not affect the supply of computer chips

8. New cars are a normal good. Suppose the economy enters a period of strong economic expansion so that consumer incomes increase substantially. What will happen to the demand for new cars?

1. It will increase because a rise in overall income produces an increase in demand for normal goods.

2. It will stay the same because people will increase the purchase of other goods.

3. It will decrease because a rise in overall income p

9. A rise in the price of a game of bowling will

Answer 1

5 - False (price will not change)

6 - False (It is change in equilibrium due to some factors - right-ward shift of demand or leftward shift of supply - but change in price will be effect - not the cause for these shifts)

7 - 1

8 - 1

9 - (your question is unfinished)

Answer 2

Son, this is basic economics.  Yes, I know it is a bit difficult to get your head around at first, but you are going ot have to learn the logic from scratch.  Look at a demand curve, look at a supply curve, find out how they are derived, and go back to base principles.  And ask yourself, when does a curve actually move, and when do you just move long the same curve.  Go back and read the first chapter of any decent economics text, like ....ooh, Das Kapital..

Answer 3

I do not understand not even a half of an eighth of what you have said.

It does not make a drop of sens to me and I think or in other

words I KNOW that I do catches on things very quickly and I just cant make head or tail out of it.

Answer 4

no it does not... the equilibrium is achieved at the same price but higher output due to a rightward shift in both demand and supply curve... meaning that both demand and supply has increased...

false... a rise in price does not shift the demand curve, it causes a movement along the curve...

contribute to cheaper production of computer chips... as new technology has arrived leading to a fall in the cost of production...

it will increase because a rise in overall income produces an increase in demand for normal goods... as when people become well off they are able to afford expensive goods.

Answer 5

You know, if don't do your homework at this stage, you won't understand a thing when you get onto more complicated stuff!

If you know what a demand curve and a supply curve are, you can easily answer these questions. If you don't, then find out, because they're basic concepts in economics.