Microeconomics (9th Edition) (Pearson Series in Economics)
9th Edition
ISBN: 9780134184241
Author: Robert Pindyck, Daniel Rubinfeld
Publisher: PEARSON
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Question
Chapter 16, Problem 1E
(a)
To determine
The
(b)
To determine
Change in quantity supplied of gold.
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Students have asked these similar questions
Suppose gold (G) and silver (S) are substitutes for each other because both serve as hedges against inflation. Suppose also that the supplies of both are fixed in the short run (Qe = 90 and Qg = 300) and that the demands for gold and silver are
given by the following equations:
PG = 990 - Qg +0.50PS
and
Ps = 630 - Qg +0.50PG-
What the the equilibrium prices of gold and silver?
The equilibrium price of gold is $ and the equlibrium price of siliver is $. (Enter your responses rounded to two decimal places.)
1) Suppose gold (G) and silver (S) are substitutes for each other because both serve as
hedges against inflation. Suppose also that the supplies of both are fixed in the short
run (Qg = 75
and Qs = 300) and that the demands for gold and silver are given by the following
equations:
PG = 975 – QG + 0.5Ps
and
Ps = 600 – Qs + 0.5PG.
What are the equilibrium prices of gold and silver?
Suppose gold (G) and silver (S) are substitutes for each other because both serve as hedges against inflation. Suppose also that the supplies of both are fixed in the short run (QG=60 and QS=300) and that the demands for gold and silver are given by the following equations:
PG= 960-QG+0.50PS
PS= 600-QS+0.50PG
a) What is the equilibrium prices ($) of gold and silver?
b) What if a new discovery equilibrium of gold doubles the quantity supplied to 120? How will this discovery affect the prices of both gold and silver?
Chapter 16 Solutions
Microeconomics (9th Edition) (Pearson Series in Economics)
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