SOLVED

Use the table below to answer the following questions. Table 3.5.1 The Market for Car-Seat Heaters Price (dollars per heater) Quantity Demanded (heaters per month) Quantity Supplied (heaters per month) 40 50 60 70 80 90 100 500 450 400 350 300 250 200 300 350 400 450 500 550 600 Â 51) Refer to Table 3.5.1. If the price is set at $80, there will be a A) shortage of 200 units and price will rise. B) shortage of 200 units and demand will fall. C) surplus of 200 units and demand will rise. D) surplus of 200 units and supply will fall. E) surplus of 200 units and price will fall. 52) Refer to Table 3.5.1. Suppose the cost of production rises and supply decreases by 100 units at each price. The new equilibrium price is $________ and equilibrium quantity is ________ units. A) 70; 450 B) 70; 350 C) 50; 450 D) 50; 350 E) 60; 400 53) Refer to Table 3.5.1. Suppose a problem develops with car-seat heaters – they malfunction and occasionally cause serious burns. As a result, demand decreases by 100 heaters at each price. The new equilibrium price is $________ and the new equilibrium quantity is ________ heaters per month. A) 70; 450 B) 70; 350 C) 50; 450 D) 50; 350 E) 60; 400 54) Refer to Table 3.5.1. Suppose a problem develops with car-seat heaters – they malfunction and occasionally cause serious burns. As a result, demand decreases by 100 heaters at each price. Simultaneously, the cost of production rises, and supply decreases by 100 heaters at each price. The new equilibrium price is $________ and the new equilibrium quantity is ________ heaters per month. A) 70; 450 B) 70; 350 C) 50; 450 D) 50; 350 E) 60; 300 Use the figure below to answer the following questions. Table 3.5.2 Demand and Supply Schedules for Cups of Coffee each day at CoolU Price (dollars per cup) Quantity Demanded (cups of coffee per day) Quantity Supplied (cups of coffee per day) 0.70 0.80 0.90 1.00 1.10 1.20 1.30 1.40 1.50 1,200 1,100 1,000 900 800 700 600 500 400 0 200 400 600 800 1,000 1,200 1,400 1,600 Â 55) Refer to Table 3.5.2. The equilibrium price is $________ and the equilibrium quantity is ________ cups a day. A) 1.30; 1200 B) 0.90; 1000 C) 1.10; 900 D) 1.10; 800 E) 1.00; 800 Â Â