Microeconomics (9th Edition) (Pearson Series in Economics)
9th Edition
ISBN: 9780134184241
Author: Robert Pindyck, Daniel Rubinfeld
Publisher: PEARSON
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Question
Chapter 2, Problem 4E
(a)
To determine
Demand and supply equation.
(b)
To determine
(c)
To determine
Price elasticity of supply.
(d)
To determine
Price level in US.
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15
Required information
Below is the total market demand and supply of wine for France and Germany. Quantities are in millions of litres per
month.
Total Market
Quantity Quantity Quantity Quantity Quantity
(per litre) Demanded Supplied DemandedSupplied Demanded Supplied
France
Germany
Price Quantity
$424
519
13
14
12
11
12
615
15
10
4
12
16
19
15
8
17
18
6
810
99
Refer to the information above to answer this question. Assuming no trade, what are the equilibrium price and quantity of wine in France?
Multiple Choice
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Consider the following fresh fish exports to GCCs (source: Annual Statistical Yearbook 2007)
Year
Price (000` RO)
Quantity (Tons)
2007
1.03
7,347.8
2006
0.70
11,342.8
2005
1.08
7,902.0
Using midpoint method, compute the elasticity of demand between 2006 – 2007 and 2005 – 2006.
Interpret your answers
Describe two factors that affect price elasticity of demand for fish exported to GCCs.
Do you think price elasticity of fish can positively inform trade policy decision makers in Oman? Why?
Chapter 2 Solutions
Microeconomics (9th Edition) (Pearson Series in Economics)
Ch. 2 - Prob. 1RQCh. 2 - Prob. 2RQCh. 2 - If a 3-percent increase in the price of corn...Ch. 2 - Prob. 4RQCh. 2 - Explain why for many goods, the long-run price...Ch. 2 - Why do long-run elasticities of demand differ from...Ch. 2 - Prob. 7RQCh. 2 - Prob. 8RQCh. 2 - Prob. 9RQCh. 2 - In a discussion of tuition rates, a university...
Ch. 2 - Suppose the demand curve for a product is given by...Ch. 2 - Prob. 12RQCh. 2 - Prob. 13RQCh. 2 - Prob. 1ECh. 2 - Consider a competitive market for which the...Ch. 2 - Prob. 3ECh. 2 - Prob. 4ECh. 2 - Prob. 5ECh. 2 - Prob. 6ECh. 2 - In 2010, Americans smoked 315 billion cigarettes,...Ch. 2 - In Example 2.8 we examined the effect of a...Ch. 2 - In Example 2.8 (page 52), we discussed the recent...Ch. 2 - Prob. 12E
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