Macroeconomics 202 – Savvy Essay Writers

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Hi, I need a help with this q to get the correct answers.

Q1:

Figure 4.6 illustrates a set of supply and demand curves for a product. When the economy moves from point C to point E, there has been:

		an increase in supply and a decrease in quantity demanded.
		a decrease in supply and a decrease in quantity demanded.
		a decrease in quantity supplied and a decrease in demand.
		an increase in quantity supplied and a decrease in quantity demanded.

Q2:

Figure 4.5 illustrates the supply of guitars. An increase in the price of rosewood, which is used to make guitars, would most likely cause a movement from:

		point B to point C.
		point B to point A.
		S₁ to S₀.
		S₁ to S₂.

Q3:

Figure 4.3 illustrates the supply and demand for blue jeans. If the actual price of blue jeans is $50, there is:

		excess demand of 40 pairs of blue jeans.
		excess supply of 40 pairs of blue jeans.
		excess demand of 50 pairs of blue jeans.
		excess supply of 50 pairs of blue jeans.

Q4:

Refer to Figure 4.1 that shows Mary and Tom’s individual demand curves for meals per week at Fratelli’s Italian Restaurant. Assuming Mary and Tom are the only consumers in the market, if the market quantity demanded is 3 the price must be:

		$5.
		$10.
		$15.
		$20.

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