27. suppose there are three massage therapists, with a supply schedule that indicates their willingness to…

27. suppose there are three massage therapists, with a supply schedule that indicates their willingness to supply massages at various prices. what is the market quantity of massages supplied at $60, and does this supply schedule follow the law of supply?\n\n| price | tracey | kira | peter |\n| ---- | ---- | ---- | ---- |\n| $40 | 5 | 10 | 3 |\n| $60 | 8 | 15 | 6 |\n| $80 | 13 | 20 | 9 |\n\n28. which set of phrases is best associated with each other?\na. trading economy : transaction system\nb. barter economy : market system\nc. market economy : price system\nd. price economy : demand system\n\n29. the supply curve has a ____ relationship between price and quantity supplied, which means that the curve is ____.\na. positive; downward sloping\nb. positive; upward sloping\nc. negative; upward sloping\nd. negative; downward sloping\n\n30. when a large factory closed in the town of greenville, income fell for many residents. as a result, demand for normal goods will ____ and demand for inferior goods will ____.\na. decrease; increase\nb. increase; increase\nc. increase; decrease\nd. decrease; decrease\n\n31. which factors would not shift the demand curve for ice cream?\na. an increase in the price of milk, a key ingredient in ice cream

27. suppose there are three massage therapists, with a supply schedule that indicates their willingness to supply massages at various prices. what is the market quantity of massages supplied at $60, and does this supply schedule follow the law of supply?\n\n| price | tracey | kira | peter |\n| ---- | ---- | ---- | ---- |\n| $40 | 5 | 10 | 3 |\n| $60 | 8 | 15 | 6 |\n| $80 | 13 | 20 | 9 |\n\n28. which set of phrases is best associated with each other?\na. trading economy : transaction system\nb. barter economy : market system\nc. market economy : price system\nd. price economy : demand system\n\n29. the supply curve has a ____ relationship between price and quantity supplied, which means that the curve is ____.\na. positive; downward sloping\nb. positive; upward sloping\nc. negative; upward sloping\nd. negative; downward sloping\n\n30. when a large factory closed in the town of greenville, income fell for many residents. as a result, demand for normal goods will ____ and demand for inferior goods will ____.\na. decrease; increase\nb. increase; increase\nc. increase; decrease\nd. decrease; decrease\n\n31. which factors would not shift the demand curve for ice cream?\na. an increase in the price of milk, a key ingredient in ice cream

Answer

Brief Explanations:

Question 27:

To find the market - quantity of massages supplied at $60, sum the quantities supplied by each therapist at that price ($8 + 15+6=29$). The law of supply states that as the price increases, the quantity supplied increases. Since for each therapist, the quantity supplied increases as the price increases (e.g., Tracey: 5 at $40, 8 at $60, 13 at $80), the supply schedule follows the law of supply.

Question 28:

In a market economy, prices play a crucial role in allocating resources, and the price system is the mechanism by which this occurs. A trading economy is not specifically associated with a transaction system in the same fundamental way. A barter economy is different from a market system as it lacks a common medium of exchange. There is no such thing as a "price economy" paired with a demand system.

Question 29:

The supply curve has a positive relationship between price and quantity supplied, meaning that as the price increases, the quantity supplied increases. This results in an upward - sloping curve.

Question 30:

When income falls, the demand for normal goods decreases because consumers can afford less of them. For inferior goods, when income falls, the demand increases as consumers switch to cheaper alternatives.

Question 31:

A change in the price of a key ingredient (milk) affects the supply curve of ice - cream, not the demand curve. A change in the price of milk causes a movement along the supply curve of ice - cream, not a shift in the demand curve.

Answer:

  1. B. 29; yes
  2. C. market economy : price system
  3. B. positive; upward sloping
  4. A. decrease; increase
  5. A. an increase in the price of milk, a key ingredient in ice cream