Microeconomics,, 16th Canadian Edition

(Sean Pound) #1

3.00 5 000 4 500 7 000


3.25 4 000 3 500 6 000


3.50 3 000 2 500 5 000


a. When the price of sugar rises from $2.50 to $3.00 in the
month of October there is a(n) (increase/decrease) in
(demand for/quantity demanded of) sugar of 2000 kg.
b. We can say that the demand curve for sugar in December
shifted (to the right/to the left) of November’s demand
curve. This represents a(n) (increase/decrease) in demand
for sugar.
c. An increase in the demand for sugar means that quantity
demanded at each price has (increased/decreased), while a
decrease in demand for sugar means that quantity
demanded at each price has (increased/decreased).
d. In the month of December, a price change for sugar from
$3.50 to $2.75 per kilogram would mean a change in
(demand for/quantity demanded of) sugar of 3000 kg.
e. Plot the three demand schedules on a graph and label
each demand curve to indicate whether it is the demand
for October, November, or December.
14. The following supply and demand schedules describe a
hypothetical Canadian market for potash.

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