Microeconomics (9th Edition) (Pearson Series in Economics)
9th Edition
ISBN: 9780134184241
Author: Robert Pindyck, Daniel Rubinfeld
Publisher: PEARSON
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Chapter 2, Problem 8E
In Example 2.8 we examined the effect of a 20-percent decline in copper demand on the price of copper, using the linear
- a. Assuming, as before, that the equilibrium price and quantity are P* = $3 per pound and Q* = 18 million metric tons per year, derive the linear demand curve consistent with the smaller elasticity.
- b. Using this demand curve, recalculate the effect of a 55-percent decline in copper demand on the price of copper.
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In Example 2.8, we examined the effect of a 20-percent decline in copper
demand on the price of copper, using the linear supply and demand curves
developed in Section 2.6. Suppose the long-run price elasticity of copper
demand were -0.80 instead of -0.50.
Assuming, as before, that the equilibrium price and quantity are P* = $3 per
pound and Q = 18 million metric tons per year, derive the linear demand curve
consistent with the smaller elasticity.
With a long-run price elasticity of -0.80, the linear demand curve is
OA. Q=33.40-4.80P.
OB. Q 32.40-6.80P.
OC. Q=33.40+ 6.80P.
OD. Q 32.40-4.80P.
OE. Q=32.40 + 4.80P.
The short-run demand and supply elasticities for crude oil are -0.076 and 0.088, respectively. The current price per barrel is $30 and the short-run equilibrium quantity is 23.84 million barrels per year.
Derive the linear demand and supply
What will be the effects on the market price and quantity if the U.S. government decides to purchase (and store away) an additional 2 million barrels of oil? Assume that the additional consumption of oil by the government results in a parallel shift of the supply curve to the left by 2 million barrels per
What could be the economic rationale for buying and storing oil?
Please do questions 1 and 2 as clear as possible
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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Price Elasticity of Supply; Author: Economics Online;https://www.youtube.com/watch?v=4bDIm3j-7is;License: Standard youtube license