Foundations of Economics (8th Edition)
Foundations of Economics (8th Edition)
8th Edition
ISBN: 9780134486819
Author: Robin Bade, Michael Parkin
Publisher: PEARSON
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Chapter 15, Problem 10SPPA
To determine

To explain:

The changes in price, quantity, and economic profit of a producer in the short run and in the long run if there is an increase in the demand of the maple syrup.

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The pen industry is an increasing cost industry.  If a pen is an inferior good, and consumer's incomes permanently increase, the equilibrium price of a pen ____ in the long run, the equilibrium quantity of pens ______in the long run, and the number of firms in the market ____ in the long run. Word Bank: Decreases, Decreases, Decreases, Increases, Increases, Increases, does not change, does not change, does not change.
Supply and Demand Schedules for A Package of Kraft Singles (16 points) Quantity Supplied Quantity Demanded Price $2.50 $3.00 15000 20000 60000 50000 ITT $3.50 25000 $4.00 $4.50 30000 35000 40000 30000 20000 Complete parts a, b, and c and either parts d and e together OR parts f and g together. Graph the supply and demand schedules in a supply curve and demand curve, respectively, on one graph. What are the equilibrium price and quantity? Show on your graph from part a and explain how the proposed state law in New York regarding plastic packaging would affect the market for the Kraft Singles. Please note that only one of the two curves will be affected. Label what you did as NY and explain why you shifted the curve you did in the direction you shifted it.
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