EBK INTERMEDIATE MICROECONOMICS AND ITS
12th Edition
ISBN: 9781305176386
Author: Snyder
Publisher: YUZU
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Question
Chapter 1, Problem 1.5P
(a)
To determine
Graphical representation of demand and supply curves and equilibrium point in the market.
(b)
To determine
Graphical representation of new demand curve and new equilibrium point in the market.
(c)
To determine
Graphical representation of new supply curve and new equilibrium point in the market.
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This problem involves solving demand and supply equations together to determine price and quantity.
a. Consider a demand curve of the form QD=-2P+20, where QD is the quantity demanded of a good and P is the price of the good. Graph this demand curve. Also draw a graph of the supply curve Qs =2P-4, where Qs is the quantity supplied. Be sure to put P on the vertical axis and Q on the horizontal axis. Assume that all the Qs and Ps are nonnegative for parts a, b, and c. At what values of P and Q do these curves intersect-that is, where does QD = Qs ?
b. Now, suppose at each price that individuals demand four more units of output-that the demand curve shifts to QD - 2P+24. Graph this new demand curve. At what values of P and Q does the new demand curve intersect the old supply curve-that is, where does QD = Qs ?
c. Now finally, suppose the supply curve shifts to Q's=2P-8. Graph this new supply curve. At what values of P and Q does QD=Q's?
Show all working calculations and label garph with…
The demand for coffee is given by the following equation, where QD�� stands for the quantity demanded and P stands for price.
QD=100−4PQD= 100- 4P
The supply of coffee is given by the following equation, where QS�� stands for the quantity supplied and P stands for price.
QS=-10+2PQS= -10+ 2P
For parts a-d, consider a graph of the demand and supply curves with price on the vertical axis and quantity on the horizontal axis.
What is the slope of demand?
Slope =
At what price is quantity demanded equal to zero (this is, graphically, the vertical intercept of Demand)?
P =
What is the slope of supply?
Slope =
At what price is quantity supplied equal to zero (this is, graphically, the vertical intercept of Supply)?
P =
2.5 This problem involves solving demand and supply equations together to determine
price and quantity.
a. Consider a demand curve of the form
QD=-2P+20,
where QD is the quantity demanded of a good and P is the price of the good. Graph
this demand curve. Also draw a graph of the supply curve
Qs =2P-4,
where Qs is the quantity supplied. Be sure to put P on the vertical axis and Q on the
horizontal axis. Assume that all the Qs and Ps are nonnegative for parts a, b, and c.
At what values of P and Q do these curves intersect-that is, where does QD = Qs ?
b. Now, suppose at each price that individuals demand four more units of output-that
the demand curve shifts to
QD - 2P+24.
Graph this new demand curve. At what values of P and Q does the new demand curve
intersect the old supply curve-that is, where does QD = Qs ?
c. Now finally, suppose the supply curve shifts to
Q's=2P-8.
Graph this new supply curve. At what values of P and Q does QD
Q's? You may
wish to refer to this simple problem…
Chapter 1 Solutions
EBK INTERMEDIATE MICROECONOMICS AND ITS
Ch. 1.2 - Prob. 1MQCh. 1.2 - Prob. 2MQCh. 1.3 - Prob. 1TTACh. 1.3 - Prob. 2TTACh. 1.4 - Prob. 1TTACh. 1.4 - Prob. 2TTACh. 1.4 - Prob. 1MQCh. 1.4 - Prob. 2MQCh. 1.4 - Prob. 1.1MQCh. 1.4 - Prob. 1.2MQ
Ch. 1.5 - Prob. 1TTACh. 1.5 - Prob. 2TTACh. 1 - Prob. 1RQCh. 1 - Prob. 2RQCh. 1 - Prob. 3RQCh. 1 - Prob. 4RQCh. 1 - Prob. 5RQCh. 1 - Prob. 6RQCh. 1 - Prob. 7RQCh. 1 - Prob. 8RQCh. 1 - Prob. 9RQCh. 1 - Prob. 10RQCh. 1 - Prob. 1.1PCh. 1 - Prob. 1.2PCh. 1 - Prob. 1.3PCh. 1 - Prob. 1.4PCh. 1 - Prob. 1.5PCh. 1 - Prob. 1.6PCh. 1 - Prob. 1.7PCh. 1 - Prob. 1.8PCh. 1 - Prob. 1.9PCh. 1 - Prob. 1.10P
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