INTERMEDIATE MICROECONOMICS A
MODERN APPROACH 10TH EDITION FINAL
PAPER FULL SOLUTION STUDY GUIDE
◉ What will not cause demand for apples to increase or decrease?
Answer: a reduction in the price of apples
◉ If the price of crude oil increases and the number of people who
own cars falls:
Answer: the equilibrium price of gasoline will be uncertain and
equilibrium quantity of gasoline will decrease.
◉ If the price of crude oil decreases:
Answer: the equilibrium price of gasoline will decrease and
equilibrium quantity of gasoline will increase.
◉ If the supply curve is QS = 4P − 4, then the highest price at which
no producer is willing to sell the good (i.e. the supply choke price) is:
Answer: 1.
, ◉ If the demand curve is QD = 10 − 2P, then the lowest price at
which no consumer is willing to buy the good (i.e., the demand
choke price) is:
Answer: 5.
◉ When the prevailing price is above the price where supply
intersects demand:
Answer: price falls because there is a surplus, so producers cut
prices to try to attract buyers.
◉ Which of the following would cause an increase in the quantity
demanded of pizza?
Answer: an increase in the supply of pizza
◉ If demand increases and supply increases:
Answer: equilibrium price will be uncertain and equilibrium
quantity will increase.
◉ If supply decreases:
Answer: equilibrium price increases and equilibrium quantity
decreases.
◉ If supply increases and demand decreases:
MODERN APPROACH 10TH EDITION FINAL
PAPER FULL SOLUTION STUDY GUIDE
◉ What will not cause demand for apples to increase or decrease?
Answer: a reduction in the price of apples
◉ If the price of crude oil increases and the number of people who
own cars falls:
Answer: the equilibrium price of gasoline will be uncertain and
equilibrium quantity of gasoline will decrease.
◉ If the price of crude oil decreases:
Answer: the equilibrium price of gasoline will decrease and
equilibrium quantity of gasoline will increase.
◉ If the supply curve is QS = 4P − 4, then the highest price at which
no producer is willing to sell the good (i.e. the supply choke price) is:
Answer: 1.
, ◉ If the demand curve is QD = 10 − 2P, then the lowest price at
which no consumer is willing to buy the good (i.e., the demand
choke price) is:
Answer: 5.
◉ When the prevailing price is above the price where supply
intersects demand:
Answer: price falls because there is a surplus, so producers cut
prices to try to attract buyers.
◉ Which of the following would cause an increase in the quantity
demanded of pizza?
Answer: an increase in the supply of pizza
◉ If demand increases and supply increases:
Answer: equilibrium price will be uncertain and equilibrium
quantity will increase.
◉ If supply decreases:
Answer: equilibrium price increases and equilibrium quantity
decreases.
◉ If supply increases and demand decreases:
