a) The mistake in the statement that, Government revenues will always increase with an increase in the taxes. Concept introduction: When one variable varies systematically with another variable. Capacity of one variable to influence other. Period of economic decline with low production and demand.

Question

Exercise 5Consider the demand and supply functions for the notebooks market.QD=10,000−100pQS=900pa. Make a table with the corresponding supply and demand schedule.b. Draw the corresponding graph.c. Is it possible to find the price and quantity of equilibrium with the graph method? d. Find the price and quantity of equilibrium by solving the system of equations.

Answer 1

Question

Chapter 1, Problem 7P

To determine

a)

The mistake in the statement that, Government revenues will always increase with an increase in the taxes.

Concept introduction:

When one variable varies systematically with another variable.

Capacity of one variable to influence other.

Period of economic decline with low production and demand.

To determine

b)

The mistake in the statement that, we should increase the imports in case of recession.

Concept introduction:

When one variable varies systematically with another variable.

Capacity of one variable to influence other.

Period of economic decline with low production and demand.

To determine

c)

The mistake in the statement that, US steel industry and the entire economy is helped by increasing the tariff on imported steel.

Concept introduction:

When one variable varies systematically with another variable.

Capacity of one variable to influence other.

Period of economic decline with low production and demand.

To determine

d)

The mistake in the statement; to reduce the national debt, US government can sell the gold in Fort Knox at $1200 per ounce.

Concept introduction:

When one variable varies systematically with another variable.

Capacity of one variable to influence other.

Period of economic decline with low production and demand.

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Exercise 5Consider the demand and supply functions for the notebooks market.QD=10,000−100pQS=900pa. Make a table with the corresponding supply and demand schedule.b. Draw the corresponding graph.c. Is it possible to find the price and quantity of equilibrium with the graph method? d. Find the price and quantity of equilibrium by solving the system of equations.

1. Consider the market supply curve which passes through the intercept and from which the marketequilibrium data is known, this is, the price and quantity of equilibrium PE=50 and QE=2000.a. Considering those two points, find the equation of the supply. b. Draw a graph for this equation. 2. Considering the previous supply line, determine if the following demand function corresponds to themarket demand equilibrium stated above. QD=.3000-2p.

Supply and demand functions show different relationship between the price and quantities suppliedand demanded. Explain the reason for that relation and provide one reference with your answer.

Answer 2

Question

Chapter 1, Problem 7P

To determine

a)

The mistake in the statement that, Government revenues will always increase with an increase in the taxes.

Concept introduction:

When one variable varies systematically with another variable.

Capacity of one variable to influence other.

Period of economic decline with low production and demand.

To determine

b)

The mistake in the statement that, we should increase the imports in case of recession.

Concept introduction:

When one variable varies systematically with another variable.

Capacity of one variable to influence other.

Period of economic decline with low production and demand.

To determine

c)

The mistake in the statement that, US steel industry and the entire economy is helped by increasing the tariff on imported steel.

Concept introduction:

When one variable varies systematically with another variable.

Capacity of one variable to influence other.

Period of economic decline with low production and demand.

To determine

d)

The mistake in the statement; to reduce the national debt, US government can sell the gold in Fort Knox at $1200 per ounce.

Concept introduction:

When one variable varies systematically with another variable.

Capacity of one variable to influence other.

Period of economic decline with low production and demand.

Expert Solution & Answer

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Answer 3

Question

Chapter 1, Problem 7P

To determine

a)

The mistake in the statement that, Government revenues will always increase with an increase in the taxes.

Concept introduction:

When one variable varies systematically with another variable.

Capacity of one variable to influence other.

Period of economic decline with low production and demand.

To determine

b)

The mistake in the statement that, we should increase the imports in case of recession.

Concept introduction:

When one variable varies systematically with another variable.

Capacity of one variable to influence other.

Period of economic decline with low production and demand.

To determine

c)

The mistake in the statement that, US steel industry and the entire economy is helped by increasing the tariff on imported steel.

Concept introduction:

When one variable varies systematically with another variable.

Capacity of one variable to influence other.

Period of economic decline with low production and demand.

To determine

d)

The mistake in the statement; to reduce the national debt, US government can sell the gold in Fort Knox at $1200 per ounce.

Concept introduction:

When one variable varies systematically with another variable.

Capacity of one variable to influence other.

Period of economic decline with low production and demand.

Expert Solution & Answer

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See solution

Check out sample textbook solution

Answer 4

Question

Chapter 1, Problem 7P

To determine

a)

The mistake in the statement that, Government revenues will always increase with an increase in the taxes.

Concept introduction:

When one variable varies systematically with another variable.

Capacity of one variable to influence other.

Period of economic decline with low production and demand.

To determine

b)

The mistake in the statement that, we should increase the imports in case of recession.

Concept introduction:

When one variable varies systematically with another variable.

Capacity of one variable to influence other.

Period of economic decline with low production and demand.

To determine

c)

The mistake in the statement that, US steel industry and the entire economy is helped by increasing the tariff on imported steel.

Concept introduction:

When one variable varies systematically with another variable.

Capacity of one variable to influence other.

Period of economic decline with low production and demand.

To determine

d)

The mistake in the statement; to reduce the national debt, US government can sell the gold in Fort Knox at $1200 per ounce.

Concept introduction:

When one variable varies systematically with another variable.

Capacity of one variable to influence other.

Period of economic decline with low production and demand.

Expert Solution & Answer

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Check out sample textbook solution

Answer 5

Chapter 1, Problem 7P

To determine

a)

The mistake in the statement that, Government revenues will always increase with an increase in the taxes.

Concept introduction:

When one variable varies systematically with another variable.

Capacity of one variable to influence other.

Period of economic decline with low production and demand.

To determine

b)

The mistake in the statement that, we should increase the imports in case of recession.

Concept introduction:

When one variable varies systematically with another variable.

Capacity of one variable to influence other.

Period of economic decline with low production and demand.

To determine

c)

The mistake in the statement that, US steel industry and the entire economy is helped by increasing the tariff on imported steel.

Concept introduction:

When one variable varies systematically with another variable.

Capacity of one variable to influence other.

Period of economic decline with low production and demand.

To determine

d)

The mistake in the statement; to reduce the national debt, US government can sell the gold in Fort Knox at $1200 per ounce.

Concept introduction:

When one variable varies systematically with another variable.

Capacity of one variable to influence other.

Period of economic decline with low production and demand.

Answer 6

Chapter 1, Problem 7P

To determine

a)

The mistake in the statement that, Government revenues will always increase with an increase in the taxes.

Concept introduction:

When one variable varies systematically with another variable.

Capacity of one variable to influence other.

Period of economic decline with low production and demand.

Answer 7

Chapter 1, Problem 7P

To determine

a)

The mistake in the statement that, Government revenues will always increase with an increase in the taxes.

Concept introduction:

When one variable varies systematically with another variable.

Capacity of one variable to influence other.

Period of economic decline with low production and demand.

Answer 8

To determine

b)

The mistake in the statement that, we should increase the imports in case of recession.

Concept introduction:

When one variable varies systematically with another variable.

Capacity of one variable to influence other.

Period of economic decline with low production and demand.

Answer 9

To determine

b)

The mistake in the statement that, we should increase the imports in case of recession.

Concept introduction:

When one variable varies systematically with another variable.

Capacity of one variable to influence other.

Period of economic decline with low production and demand.

Answer 10

To determine

c)

The mistake in the statement that, US steel industry and the entire economy is helped by increasing the tariff on imported steel.

Concept introduction:

When one variable varies systematically with another variable.

Capacity of one variable to influence other.

Period of economic decline with low production and demand.

Answer 11

To determine

c)

The mistake in the statement that, US steel industry and the entire economy is helped by increasing the tariff on imported steel.

Concept introduction:

When one variable varies systematically with another variable.

Capacity of one variable to influence other.

Period of economic decline with low production and demand.

Answer 12

To determine

d)

The mistake in the statement; to reduce the national debt, US government can sell the gold in Fort Knox at $1200 per ounce.

Concept introduction:

When one variable varies systematically with another variable.

Capacity of one variable to influence other.

Period of economic decline with low production and demand.

Answer 13

To determine

d)

The mistake in the statement; to reduce the national debt, US government can sell the gold in Fort Knox at $1200 per ounce.

Concept introduction:

When one variable varies systematically with another variable.

Capacity of one variable to influence other.

Period of economic decline with low production and demand.

Answer 14

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Answer 15

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Answer 19

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Answer 21

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Answer 25

Ch. 1 - Prob. 1P Ch. 1 - Prob. 2P Ch. 1 - Prob. 3P Ch. 1 - Prob. 4P Ch. 1 - Prob. 5P Ch. 1 - (Role of Theory) What good is economic theory if...Ch. 1 - Prob. 7P Ch. 1 - Prob. 8P Ch. 1 - (Studying Economics) According to the text,...

a) The mistake in the statement that, Government revenues will always increase with an increase in the taxes. Concept introduction: When one variable varies systematically with another variable. Capacity of one variable to influence other. Period of economic decline with low production and demand.

a) The mistake in the statement that, Government revenues will always increase with an increase in the taxes. Concept introduction: When one variable varies systematically with another variable. Capacity of one variable to influence other. Period of economic decline with low production and demand.

b) The mistake in the statement that, we should increase the imports in case of recession. Concept introduction: When one variable varies systematically with another variable. Capacity of one variable to influence other. Period of economic decline with low production and demand.

Chapter 1 Solutions

b)

The mistake in the statement that, we should increase the imports in case of recession.

Concept introduction:

When one variable varies systematically with another variable.

Capacity of one variable to influence other.

Period of economic decline with low production and demand.