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    Answers To Econ Workbook Unit 4

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    1) As the demand for ink cartridges decreases due to inkjet printers and ink cartridges being complements, the demand curve for ink cartridges shifts left, decreasing the equilibrium price and quantity. 2) As the cost of producing leather shoes increases, the supply curve shifts left, increasing the equilibrium price and decreasing the equilibrium quantity. 3) If the increase in supply of textbooks due to lower production costs is greater than the increase in demand from more students, then the price of textbooks will decrease.

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    Answers To Econ Workbook Unit 4

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    hahahaha wahahahha
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    1) As the demand for ink cartridges decreases due to inkjet printers and ink cartridges being complements, the demand curve for ink cartridges shifts left, decreasing the equilibrium price and quantity. 2) As the cost of producing leather shoes increases, the supply curve shifts left, increasing the equilibrium price and decreasing the equilibrium quantity. 3) If the increase in supply of textbooks due to lower production costs is greater than the increase in demand from more students, then the price of textbooks will decrease.

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    Answers to Econ Workbook Unit 4

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    1) As the demand for ink cartridges decreases due to inkjet printers and ink cartridges being complements, the demand curve for ink cartridges shifts left, decreasing the equilibrium price and quantity. 2) As the cost of producing leather shoes increases, the supply curve shifts left, increasing the equilibrium price and decreasing the equilibrium quantity. 3) If the increase in supply of textbooks due to lower production costs is greater than the increase in demand from more students, then the price of textbooks will decrease.

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    Download as docx, pdf, or txt
    11 views5 pages

    Answers To Econ Workbook Unit 4

    Uploaded by

    hahahaha wahahahha
    1) As the demand for ink cartridges decreases due to inkjet printers and ink cartridges being complements, the demand curve for ink cartridges shifts left, decreasing the equilibrium price and quantity. 2) As the cost of producing leather shoes increases, the supply curve shifts left, increasing the equilibrium price and decreasing the equilibrium quantity. 3) If the increase in supply of textbooks due to lower production costs is greater than the increase in demand from more students, then the price of textbooks will decrease.

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    F.

    4 Econ Workbook Chp 4 Changes in demand and supply


    Part I : Multiple Choice
    C D
    01-3 01-4
    A C D C C C C
    01-5 01- 02-7 02-9 03-8 03- 04-6
    10 14
    C C C --
    05-5 06-6 06-8
    B A B D A B D A
    07-10 08-5 09-5 09-6 09-7 10-6 10-8 Sample
    15
    C D D B A A C A
    Practi 12- 13- 13- 13- 14- 14-14 15-15
    ce 13 10 11 12 12
    A B C D C A D B
    16- 16- 17- 17- 18- 18- 18- 19-13
    14 16 14 17 13 16 20
    A D
    20-14 20-
    12

    Part II : Short Questions


    1a) (5 marks)
    P
    S

    P1
    P2
    D2 D1
    Q2 Q1 Q
    As inkjet printers and ink cartridges are complements, the demand
    for ink cartridges will decrease. The demand curve for ink
    cartridges will shift left from D1 to D2.
    As a result, the equilibrium price will decrease from P1 to P2 and
    the equilibrium quantity will decrease from Q1 to Q2.

    b) (5 marks)
    P

    1
    S2 S1

    P2
    P1
    D1
    Q2 Q1 Q
    As the cost of production increases, the supply of leather shoes will
    decrease.
    The equilibrium price of leather shoes increases and quantity
    transacted decreases.

    c) - HOS flats and private housing are substitutes. (1m)


    - Demand for private housing decreases. (1m)
    - Price of private housing decreases. (1m)
    P
    S Diagram (2m)

    P1

    P2

    D2 D1
    Q
    Q2 Q1

    Change in demand versus change in quantity demanded


    P May

    P1

    2
    P2

    0 D Q
    Q1 Q2
    P
    June S

    P2
    P1

    0 D1 D2 Q
    Q1 Q2
    May is correct because there is a decrease in price of down jackets, the
    quantity demanded of down jacket increases.
    June is correct because there is an increase in demand for down jacket.
    The demand curve shifts right from D1 to D2
    The equilibrium price increases from P1 to P2.
    The equilibrium quantity demanded increases from Q1 to Q2.

    3.a
    As the cost of production decreases, there is an increase in supply of
    textbooks. (2m)
    As the number of students increases, the demand for textbooks
    increases. (2m)
    ii)

    (3m)
    If the increase in demand is smaller than increase in supply, the price
    of textbooks will decrease. (1m)

    b)

    3
    (3m)
    There is a decrease in the supply of gasoline. (1m) Since gasoline
    and cars are complements (1m), there is a decrease in the demand
    for gasoline. (1m) When the decrease in supply is greater than the
    decrease in demand, the price increases. (1m)
    5.
    a) P S

    New shortage
    Tuition
    fee Old shortage D1 D2

    0 Quantity of university places in HK

    As the tuition fee is below the equilibrium level, there is a shortage. (1m)
    There is an increase in demand for university places in HK (1m), so the
    excess demand increases. (1m)

    a. Diagram (2m)

    4
    When the tunnel toll is set below the equilibrium level, there is a shortage. (2m)

    b. Private cars consist of more than half of the tunnel traffic (from Source D) and the
    number of persons in the vehicles is very low (from Source E)

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