Question 1' Suppose there are only two goods - Food (F) and Shelter (S). The demand equatic for these two goods depend on their prices, pf and ps as follows: DE(PF.Ps) = 19 - 2.2pf - 1.3ps Ds(PF.Ps) = 11 - 1.1pf - 3.0ps The supply curves depend only on their own prices: S(pf) = Pf S(ps) = 7.8ps Determine the equilibrium price of shelter. Your Answer:

Question 1' Suppose there are only two goods - Food (F) and Shelter (S). The demand equatic for these two goods depend on their prices, pf and ps as follows: DE(PF.Ps) = 19 - 2.2pf - 1.3ps Ds(PF.Ps) = 11 - 1.1pf - 3.0ps The supply curves depend only on their own prices: S(pf) = Pf S(ps) = 7.8ps Determine the equilibrium price of shelter. Your Answer:

Economics (MindTap Course List)

13th Edition

ISBN:9781337617383

Author:Roger A. Arnold

Publisher:Roger A. Arnold

Chapter20: Consumer Choice: Maximizing Utility And Behavioral Economics

Section: Chapter Questions

Problem 9QP

See similar textbooks

Similar questions

What effect will each of the following have on the supply of auto tires? Microeconomics chapter 3 Supply is a schedule or curve showing the amounts of a productthat producers are willing to offer in the market at each possibleprice during a specific period. The law of supply states that otherthings equal, producers will offer more of a product at a high pricethan at a low price. Thus, the relationship between price and quantity supplied is positive or direct, and supply is graphed as anupsloping curve.The market supply curve is the horizontal summation of thesupply curves of the individual producers of the product.Changes in one or more of the determinants of supply (resource prices, production techniques, taxes or subsidies, the pricesof other goods, producer expectations, or the number of sellers inthe market) shift the supply curve of a product. A shift to the rightis an increase in supply; a shift to the left is a decrease in supply. Incontrast, a change in the price of the…
What effect will each of the following have on the supply of auto tires? Microeconomics chapter 3 Supply is a schedule or curve showing the amounts of a productthat producers are willing to offer in the market at each possibleprice during a specific period. The law of supply states that otherthings equal, producers will offer more of a product at a high pricethan at a low price. Thus, the relationship between price and quantity supplied is positive or direct, and supply is graphed as anupsloping curve.The market supply curve is the horizontal summation of thesupply curves of the individual producers of the product.Changes in one or more of the determinants of supply (resource prices, production techniques, taxes or subsidies, the pricesof other goods, producer expectations, or the number of sellers inthe market) shift the supply curve of a product. A shift to the rightis an increase in supply; a shift to the left is a decrease in supply. Incontrast, a change in the price of the…
al The dernand and supply schedules for wine are above. Plot both in a graph. Find the equilibrium price and quantity b) if the price of wine is currently $30, what is this situation called in the market? Plot this scenario in same graph in part (a) c) For part (b), how big is the gap between what consumers want and what suppliers want? d) What would eventually happen to price and quantity in the market in part (b)?
2) The following figure shows the demand curves for pens for two consumers. Price 40 Quantity Refer to the figure above and answer the following questions: a) How do you derive the market demand curve? Explain. b) Assuming that the market consists of only these two consumers, what is the market demand for pens when the price is $4? ) Assuming an increase in the price of notebooks, what will be the likely effect on consumers' demand for pens? Explain in terms of possible change in demand curves.
answer please the last 2 sub questions The estimated demand for Canadian Processed Pork is given byQD = 171 − 20p + 20pB + 3pC + 2Ywhere QD is the quantity of pork demanded (millions of kg), p is the dollarprice per kg, pB is the price of beef per kg, pC is the price of chicken perkg, and Y is average consumer income in thousands of dollars. The supplyfor this market is given byQS = 178 + 40p − 60pB(a) According to the equations, what is the effect of an increase of pCon the market for pork? Specifically, which curve will shift, in whatdirection does the curve shift, and how will the equilibrium priceand quantity change (increase/decrease). On a corresponding graphof the supply and demand, draw the shifting curve and change inequilibrium. Note that no specific numbers are required here. Justthe direction of change.(b) Use the equations to solve for the equilibrium price of pork and quantity of pork as functions of the exogenous variables pB, pC , and Y .These will be linear…
QUESTION ONESuppose that a market for tomatoes is given by the following demand and supply equationsQd = 40 − 2PQs = −4 + 2PWhere Qs, Qd and P, are the quantity demanded, quantity supplied and Price for tomatoes respectively.i. Determine the equilibrium price and quantity of tomatoes.ii. On the same diagram, draw the demand and supply curve, clearly showing the intercepts, equilibrium price and equilibrium quantity.iii. Calculate the consumer surplus, producer surplus and total surplus.iv. Suppose that the government introduces a fixed tax of ZMW5 per unit of tomato.a) Calculate the new equilibrium price and quantity. b) Find the new consumer surplus, producer surplus, total surplus, and the deadweight loss?c) What is the incidence of a tax?
I. For the normal good, make a (Hypothetical) linear demand schedule with 7 different price points and corresponding quantity demanded for your own household. For the same normal good, make another (Hypothetical) linear demand schedule with 7 different price points and corresponding quantity demanded for your neighbor. Assuming that you and your neighbor are the only two households in the market, make a market demand schedule for the same normal good. Draw and interpret a graph to show the market demand and impact of changes in quantity demanded, if price of the same normal good decreases.
The equilibrium price for Gizmos Puzzle Toys is $10, but Gizmos are currently priced at $12 throughout the market. In the typical store that sells Gizmos, we might expect: O the box of available Gizmos is often full. O equilibrium has nothing to do with how many Gizmos the store sells. the store has a surplus of generic brand puzzles. the box of available Gizmos is often empty.
Suppose that the market for bottled water can be represented by the following equations: Demand: P = 10 - 2QDSupply: P = 1 + 0.5QSwhere P is the price per gallon, and Q represents quantity of purified water, represented inmillions of gallons of water consumed.a) Calculate the equilibrium price and quantity of bottled water.b) Concerned over high water prices after the winter storm, the government sets a priceceiling of $2.25 per gallon of water. What is the new quantity of water sold in themarket? Use supply and demand curves to illustrate your answer, showing both theoriginal equilibrium from part a) and the new quantity sold with the price ceiling.c) Calculate the producer surplus and consumer surplus at the initial equilibrium priceand quantity from part a).d) Calculate the new producer surplus and consumer surplus with the price ceiling frompart b).e) How does the total consumer and producer surplus in part c) compare to the totalconsumer and producer surplus in part d)? What…
If individuals were spending more time at home and expected the price of Charmin toilet paper to increase in the future, would this, ceteris paribus, be reflected as a change in demand or a change in supply in the market for Charmin toilet paper – a normal good?  Explain.  Be sure to clearly identify a textbook variable or determinant that is causing this change.  Would this change be an increase or decrease?  Explain.�� Would this change result in a surplus or in a shortage in the market for Charmin toilet paper?  Explain.  Given this surplus or shortage, how will a new equilibrium be established?  What do you predict will happen to the equilibrium price and the equilibrium quantity exchanged in the market for Charmin toilet paper?  Explain.
If macaroni and cheese is an inferior good and an increase in consumer income occurs, then which of the following statements is TRUE? Select one: O a. At a given price, more will be spent on macaroni and cheese. O b. There will be an increase in demand for macaroni and cheese. Oc The demand curve for macaroni and cheese will shift farther away from the origin. Od. There will be a decrease in demand for macaroni and cheese.
The figure shows the supply and demand for online music. Suppose that an economic downturn decreases household wealth and erodes consumer confidence. Move the supply and/or demand curves to reflect the primary effect this would have on the market for online music. You can assume that online music is a normal good. Also select the end result of equilibrium price and quantity. Equilibrium price increases. O remains constant. Equilibrium quantity increases. remains constant. decreases. O change is ambigous. decreases. change is ambiguous. Price (5 per track) Quantity (number of tracks) Supply Demand