Principles of Microeconomics

Stevenson, Betsey;Wolfers, Justin

Chapter 2 Demand: Thinking Like a Buyer - all with Video Answers

Educators

Chapter Questions

Problem 1

You just took an Uber from home to campus for the first time and were willing to pay $$\$ 13$$ for the trip. It was so much easier than driving yourself that you are willing to pay $$\$ 21$$ for the same trip tomorrow. Have you violated the law of demand? Why or why not?

Xiaomin Bian

Numerade Educator

02:15

Problem 2

Do you use water for things that are beyond what is necessary to sustain life? What if the price of water in your home tripled? How would you respond? Are there activities that you would change or stop doing? Briefly explain. Does your demand for water obey the

Prashant Bana

Numerade Educator

03:10

Problem 3

A team of analysts at Amazon is researching the viability of producing a smart watch. How might they estimate potential demand for their smart watch? What kinds of factors would the analysts want to keep in mind to create the most accurate estimates?

Xiaomin Bian

Numerade Educator

08:56

Problem 4

For each of the following goods or services, indicate whether you think they are normal or inferior goods for most consumers. Briefly explain your reasoning.
a. The newest iPhone
b. 10-year-old used cars
c. Dental services

Ansh Varma

Numerade Educator

01:50

Problem 5

When Sony released the PlayStation 4 , it was reported that it was taking a loss of $\$ 60$ on every console. However, Sony expected to make this up with sales of online play subscriptions (PS+) and increased royalties from video games. Use the concepts described in this chapter to help explain this strategy.

Heather Duong

Numerade Educator

01:57

Problem 6

Find the flaw in reasoning in the following statement: "An increase in the cost of oil will cause the price of a plane ticket to increase. This increase in price will cause a decrease in demand for airline travel and a leftward shift in the demand curve."

Kaylee Mcclellan

Numerade Educator