Assignment 3 Answers |11 Questions| With Correct Answers.

Refer to the above diagram. A government-set price floor is best illustrated by: {Ans: price C}Which of the above diagrams illustrate(s) the effect of a decline in the price of personal computers on the market for software? {Ans: A only}If L and M are complementary goods, an increase in the price of L will result in: {Ans: a decrease in the sales of M.}The demand curve shows the relationship between: {Ans: price and quantity demanded.}Refer to the above table. If demand is represented by columns (3) and (1) and supply is represented by columns (3) and (4), equilibrium price and quantity will be: {Ans: $9 and 60 units.}A decrease in quantity demanded (as distinct from a decrease in demand) is depicted by a: {Ans: move from point y to point x.}In 2003 the price of oil increased, which in turn caused the price of natural gas to rise. This can best be explained by saying that oil and natural gas are: {Ans: substitute goods and the higher price for oil increased the demand for natural gas.}Refer to the above diagram. The highest price that buyers will be willing and able to pay for