stitute inputs fall.

(b) the prices of substit

(c) the productivity of labor increases.

(d) the wage rate declines.

(e) None of the above.

23.If the demand and supply curve for computers is:

D 100- 6P, S 28+3P

Where P is the price of computers, what is the quantity

of computers bought and sold at equilibrium?

24. The quantity demanded of Good Z depends upon the

price of Z (Pz), monthly income (Y), and the price of a

related Good W (Pw). Demand for Good Z (Qz) is given

Dy equation 1 below: Qz = 150 8Pz+2Y 15Pw

Find the demand equation for Good Z in terms of the

price for z (Pz), when Y is $50 and Pw = $6.

25. Beef supplies are sharply reduced because

of drought in the beef-raising states, and consumers turn

to pork as a substitute for beef. How would yOu illustrate

this change in the beef market in upply-and-demand

terms?

26. In December, the price of Christmas trees rises and

the number of trees sold also rises. Is this a violation of

the law of demand?

27. A firm charges $800 for its unique word processor. If

total revenue is $55,000 in July, how many word

processors were sold that month?

28. Find the slope of an assumed linear demand curve

for theater tickets, when persons purchase 1,000 at

$5.00 per ticket and 200 at $15.00 per ticket.

29. Given the following data:

WIDGETSP =80-Q (Demand)

P 20+20 (Supply)

Given the above demand and supply equations for

widgets, find the equilibrium price and quantity.

30. Given the following data:

WIDGETSP = 80 Q (Demand)

P 20 +20 (Supply)

Now suppliers must pay a tax of $6 per unit. Find the

new equilibrium price-inclusive price and quantity.