CONNECT F/MICROECONOMICS
21st Edition
ISBN: 2810022151240
Author: McConnell
Publisher: MCG
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Chapter 19, Problem 1RQ
To determine
When the equilibrium prices decreases in the economy.
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Students have asked these similar questions
6. Indicate whether each of the following state-
ments applies to microeconomics or macro-
marginal cost and
economics: LO3
a. The unemployment rate in the United States
was 5.0% in April 2008.
b. A U.S. software firm discharged 15 work-
ers last month and transferred the work to
India.
C. An unexpected freeze in central Florida
reduced the citrus crop and caused the price
of oranges to rise.
d. U.S. output, adjusted for inflation, grew by
2.2% in 2007.
e. Last week Wells Fargo Bank lowered its
interest rate on business loans by one-half
of 1 percentage point.
. Suppose that a car dealership wishes to see if efficiency wages will help improve its salespeople’s productivity. Currently, each salesperson sells an average of one car per day while being paid $20 per hour for an eight-hour day. LO17.8
What is the current labor cost per car sold?
Suppose that when the dealer raises the price of labor to $30 per hour the average number of cars sold by a salesperson increases to two per day. What is now the labor cost per car sold? By how much is it higher or lower than it was before? Has the efficiency of labor expenditures by the firm (cars sold per dollar of wages paid to salespeople) increased or decreased?
Suppose that if the wage is raised a second time to $40 per hour the number of cars sold rises to an average of 2.5 per day. What is now the labor cost per car sold?
If the firm’s goal is to maximize the efficiency of its labor expenditures, which of the three hourly salary rates should it use: $20 per hour, $30 per hour, or $40 per hour?…
Based on Figure 1, choose the right statement. Assume that cloth is the labor-
intensive commodity and that corn is the capital-intensive commodity.
1) The qutput of cloth less than doubled because of lack of enough demand.
O 2) The output of cloth less than doubled because capital is not used in the cloth
production.
O 3)
The output of cloth less than doubled because labor is the only factor of
production.
.O
4)
The output of cloth less than doubled because only labor increased.
Figure 1. Economic growth
Com
(Tons)
80
70
BA
130
250 Cloth (Yards)
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- NOTE: Please explain what’s in the photo attached.arrow_forward3. Refer to the expanded table below from review question 8. LO3.4 a. What is the equilibrium price? At what price is there nei- ther a shortage nor a surplus? Fill in the surplus-shortage column and use it to confirm your answers. b. Graph the demand for wheat and the supply of wheat. Be sure to label the axes of your graph correctly. Label equi- librium price Pand equilibrium quantity Q. c. How big is the surplus or shortage at $3.40? At $4.90? How big a surplus or shortage results if the price is 60 cents higher than the equilibrium price? 30 cents lower than the equilibrium price? Thousands of Bushels Surplus (+) or Shortage (-) Thousands Price per Bushel of Bushels Supplied Demanded 85 $3.40 72 80 3.70 73 75 4.00 75 70 4.30 77 65 4.60 79 60 4.90 81arrow_forward30arrow_forward
- Suppose that marginal product doubled while product price tripled in the table belo Marginal Marginal Product (MP) Units of Total Product Product Price | Total Revenue Revenue Resource (Output) Product $2 $0 1 7 7 2 14 $14 2 13 6. 2 26 12 3 18 2 36 10 4 22 2 44 8 25 50 6 27 2 2 54 4 7 28 1 56 LOarrow_forwardA dozen eggs cost $1.22 in January 1990 and $2.33 in January 2016. The average wage for workers in private industries was $10.02 per hour in January 1990 and $21.33 in January 2016. By what percentage did the price of a dozen eggs rise? 48% 91% 111% By what percentage did the wage rise? O 21% 94% 113% In order to earn enough to buy a dozen eggs, a worker had to work. Workers' purchasing power in terms of eggs minutes in January 1990 and between 1990 and 2016. minutes in January 2016.arrow_forwardplease make sure the answer is correct 100%arrow_forward
- How about question B, C, and D.arrow_forwardGiven this two-sector economy: Skills Practice Final Demand Skills lo 50 50 Practice 50 lo 50 Clutch moments 40 20 High-fives 10 30 1. Solve for the Leontief matrix and its inverse. 2. Do both sectors rely on their own resources? 3. Solve for the new output if final demand changes to 40 for skills and 60 for practice. 4. Reconstruct the transaction table, given your answers in (3).arrow_forward(Butterworth) Mrs. Butterworth Maple Syrup budgets its marketing efforts using competitive parity. Its current market share and share of voice are both 42%. With the release of a new cannabis- Infused flavor, Mrs. Butterworth wants to get its market share even higher. If Mrs. Butterworth wants to increase its market share to 48%, how many additional share of voice points do they need? O 12 O75 O 10.5arrow_forward
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