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.
Chapter 15 Solutions
Foundations of Economics (8th Edition)
Ch. 15 - Prob. 1SPPACh. 15 - Prob. 2SPPACh. 15 - Prob. 3SPPACh. 15 - Prob. 4SPPACh. 15 - Prob. 5SPPACh. 15 - Prob. 6SPPACh. 15 - Prob. 7SPPACh. 15 - Prob. 8SPPACh. 15 - Prob. 9SPPACh. 15 - Prob. 10SPPA
Ch. 15 - Prob. 11SPPACh. 15 - Prob. 1IAPACh. 15 - Prob. 2IAPACh. 15 - Prob. 3IAPACh. 15 - Prob. 4IAPACh. 15 - Prob. 5IAPACh. 15 - Prob. 6IAPACh. 15 - Prob. 7IAPACh. 15 - Prob. 8IAPACh. 15 - Prob. 9IAPACh. 15 - Prob. 10IAPACh. 15 - Prob. 11IAPACh. 15 - Prob. 1MCQCh. 15 - Prob. 2MCQCh. 15 - Prob. 3MCQCh. 15 - Prob. 4MCQCh. 15 - Prob. 5MCQCh. 15 - Prob. 6MCQCh. 15 - Prob. 7MCQCh. 15 - Prob. 8MCQ
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- 20. Paulina sells beef in a competitive market where the price is $6 per pound. Her total revenue and total costs are given in the table below. Fill out the table. At what quantity does marginal revenue equal marginal cost? What is the profit-maximizing quantity?arrow_forwardFalero is one of more than a hundred competitive firms in Philadelphia that produce extra-large cardboard boxes for moving. The following graph shows the daily market demand and supply curves. PRICE(Dollars per extra-large box) 50 45 40 Demand 35 10 5 0 0 1 2 3 4 5 6 7 QUANTITY (Millions of extra-large boxes) Supply 9 10 ?arrow_forwardThere are several pen manufacturers in Corinthia. However, the pens sold by each manufacturer have a unique design. How will the demand for pens faced by the existing pen manufacturers in Corinthia be affected if new firms enter the industry in the long run? a. The demand curve faced by the existing firms will become perfectly elastic. b. The demand faced by the existing firms will decrease. c. The demand curve faced by the existing firms will become perfectly inelastic. d. The demand faced by the existing firms will increase.arrow_forward
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- 2. The demand curve facing a competitive firm The following graph illustrates the market for small moving trucks in Waco, TX, during Baylor's fall move-in week. PRICE (Dollars per small truck) 100 90 80 70 60 50 8 40 30 20 10 0 0 0 Demand 1 1 2 3 2 3 5 6 7 QUANTITY (Hundreds of small trucks) Suppose that You Yeet is one of over a dozen competitive firms in the Waco area that offers moving truck rentals. Based on the preceding graph showing the weekly market demand and supply curves, the price YouYeet must take as given is $ Fill in the price and the total, marginal, and average revenue YouYeet earns when it rents 0, 1, 2, or 3 trucks during move-in week. Quantity Price Total Revenue Marginal Revenue Average Revenue (Dollars) (Dollars) (Dollars per truck) (Trucks) (Dollars per truck) Supply curve Supply 9 Average revenue curve Marginal cost curve 10 0 Marginal revenue curve The demand curve faced by YouYeet is identical to which of its other curves? Check all that apply.arrow_forwardConfused and don’t know how to solve these set of problemsarrow_forwardExplain how the reopening of the economy after the Covid-19 lockdowns and then the war in Ukraine has impacted the supply and demand of petrol. Using a business sector of activity (e.g. technology, transportation, retail, ...) of your choice as an example, further explain the consequences of these changes on price, consumption and economic profitability for consumers and companies. Tips: You must consider the impact on supply and demand in a first step, then how this impacts the economy. Reference is required in this question with a goal of 10 unique academic/professional references. Structure this response as an essay with an introduction and conclusion. A graph or two can be included.arrow_forward
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