Economics 210
Homework Chapter 3
(1) Which
diagram above would correspond to the following events?
(a) The
market for gas guzzling Sport Utility vehicles if the price of gasoline goes up. ______
(b) The
market for automobiles if the cost of steel in the production of automobiles
goes down. _____
(c) The
market for Dell Computers if the price of Gateway Computers (a close
substitute) goes up. ____
(d) The
market for housing if the interest rate, and consumer
mortgage rates, fall. _______
(e) The
market for computers if the cost of components (memory) goes up. ______
(2) Do problems #3 and #7 from the textbook, pages
83 to 84.