Lecture Exercise #4Spring 2022You will work on these exercises during class on Friday, January 21st. You are strongly encouraged to work with 3 or 4 of your peers, where you will discuss and work through the problems together. The instructional team will circulate between groups to answer your questions and provide guidance. Post your answers on Poll Everywhere (PE) using the link provided by Professor Balaban. Note that the PE link will be opened on command during class and will close with 15-20 minutes left in class. A warning will be given a few minutes before the link is closed. We will review the answers after the link isclosed.Honor Code Notice: You are not permitted to upload any content from this course to the web in any form, including but not limited to Chegg, Course Hero, Coursera, Google Drive, etc. If you post my coursecontent, you may be violating my intellectual property rights. In utilizing web sources to upload or download course content, you risk violating the University’s Honor Code.This graph represents the market for peanut butter. Use it to answer questions 1 and 2.1. All else equal, an increase in the income of buyers who consider peanut butter to be an inferior good would cause a move froma. DA to DB.b. DB to DA.c. x to y.d. y to x.2. All else equal, an increase in the price of peanut butter would cause a move froma. DA to DB.b. DB to DA.c. x to y.d. y to x.Use this graph to answer questions 3 and 4.Supply A Supply B Supply CQuantityPrice3. Which of the following would cause the supply curve to shift from Supply A to Supply C in the market for tennis racquets?a. an increase in the price of tennis ballsb. an expectation by firms that the price of tennis racquets will increase in the very near futurec. a decrease in the price of tennis racquet stringsd. a decrease in the number of firms selling tennis racquets4. Which of the following would cause the supply curve to shift from Supply B to Supply A in the market for tennis racquets?a. a decrease in the price of tennis ballsb. an expectation by firms that the price of tennis racquets will increase in the very near futurec. a decrease in the price of tennis racquet stringsd. an improvement in technology that allows firms to use less labor in the production of tennis racquetsThe table below represents the value that 4 students place on a used economics book. Use this table to answer questions 5 and 6. Assume that each student is only interested in buying one book.5. At a price of $25, how many students are willing and able to purchase a book?a. 1b. 2c. 3d. 46. Suppose the professor announces that the questions for the midterm exam will be drawn out of the textbook and that this announcement increases the amount that each person is willing and able to pay by $10. At a price of $25, how many students are willing and able to purchase a book?a. 1b. 2c. 3d. 47. The professor’s announcement in question 6 caused the ____________.a. demand for used textbooks to decrease.b. demand for used textbooks to increase.c. Quantity demanded for used textbooks to decrease.d. Quantity demanded for used textbooks to increase.Buyer Buyer’s ValueJake $50Parita $30Jonathan $20Asia
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