Principles of Microeconomics (Second Edition)
2nd Edition
ISBN: 9780393623840
Author: Lee Coppock, Dirk Mateer
Publisher: W. W. Norton & Company
expand_more
expand_more
format_list_bulleted
Question
Chapter 2.A, Problem 2SP
To determine
Calculate the slope of a
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solution
Students have asked these similar questions
What is the effect if price of x is increased?
draw graph
How do I calculate the slope of a curve?
For the following exercise, refer to the graph of the coffee market described on
the right portion of your screen.
Event: The future price of coffee is expected to escalate.
In the graph of the coffee market (using the line drawing tool) show how the
demand curve will change as a result of the event described above. Label the
new demand curve 'D₂'.
Note: if you are not prompted for a label, then you have used the wrong drawing
tool.
For the following exercise, refer to the graph of the coffee market described on
the right portion of your screen.
Event: Reports suggest coffee causes insomnia.
In the graph of the coffee market (using the line drawing tool) show how the
demand curve will change as a result of the event described above. Label the
new demand curve 'D₂'-
Note: if you are not prompted for a label, then you have used the wrong drawing
tool.
←
Price per kg
Price per kg
Quantity of coffee per week (millions of kgs)
D₁
Quantity of coffee per week (millions of kgs)
Chapter 2 Solutions
Principles of Microeconomics (Second Edition)
Knowledge Booster
Similar questions
- : Dana received good news from her parents with the increase of her school allowance, so she spends more money on pretzels every week. How can you explain this with a graph? This is an example of a shift in Dana's demand curve. She has a permanent increase in her income, so she begins to buy more, even though the prices haven't dropped.arrow_forwardThe price of crude oil has been increasing. The price of a good rises in two cases, when demand rises or when supply falls, or both. It has been given that there has been a growing demand for crude oil for turning into refined petroleum (increase in demand), along with a decline in its production (fall in supply). It implies that both an increase in demand and a decrease in supply is responsible for the price rise. Draw a graph to show the information.arrow_forwardThe Law of Demand states that as the price of a good increases, ceteris penbus, the The relationship that exists between these two variables can be described as decreases. This can be shown graphically with demand curve or numericaly in a table using a 0arrow_forward
- Economists like to calculate the percent changes in numbers. If the price of gasoline was $3.25 a gallon last week and this week it is $3.95 a gallon, what is the percentage change in price? 33.3 percent 82.3 percent 21.5 percent 17.7 percentarrow_forwardSuppose that the relationship between price, P, and quantity, Q, is given by the equation Q = 60 - 4P. Which of the following equations correctly represents solving Q=60-4P for P? OP=60+Q OP=15-40 OP=15-10 OP=60-Q OP=60-40 Plot the relationship between P and Q on the following graph.arrow_forwardApple, the consumer electronics giant, on Tuesday rolled out new versions of its popular iPod music player. CEO Steve Jobs also unveiled cheaper models of its Touch music player, a touchscreen-only device. An 8-gigabyte version now costs $229, down from $299. A 32-gigabyte model costs $399, down from $499. Suppose when the price of an iPod decreases by 20 percent, the number of songs downloaded on iTunes increases by 30 percent. Based on this information iTunes are A. a normal good. B. an inferior good. C. substitutes for iPods. D. complements to iPods.arrow_forward
- The following graph shows the market for cereal in New York City, where there are over 1,000 stores that sell cereal at any given moment. Suppose the Surgeon General issues a public statement saying that consuming cereal is bad for your health. Show the effect of this change on the market for cereal by shifting one or both of the curves on the following graph, holding all else constant. Note: Select and drag one or both of the curves to the desired position. Curves will snap into position, so if you try to move a curve and it snaps back to its original position, just drag it a little farther. Supply Demand Supply Demand QUANTITY (Boxes) Now suppose Congress passes a tax cut that increases the income of New York City residents. If cereal is a normal good, this will cause the demand for cereal to PRICE (Dollars per box)arrow_forward1A.3 The following table shows the relationship between the price of organic turkeys and the number of turkeys sold by God- frey's Free-Range Gobblers. a. Is the relationship between the price of turkeys and the number of turkeys sold by Godfrey's Free-Range Gob- blers a positive relationship or a negative relationship? Explain. b. Plot the data from the table on a graph, draw a line through the points, and calculate the slope of the line. Price per Turkey $16 20 52 36 8 Quantity of Turkeys 70 80 160 120 50 Month September October November December Januaryarrow_forward24 PRICE (Dollars per box) 21 18 15 12 0 0 6 12 18 24 30 36 42 48 QUANTITY (Thousands of boxes) 54 60 •+ Pointarrow_forward
- The owner of Grand Central Bookstore is looking into the sales of its Health & Fitness magazine section. She finds that her equilibrium is at 800 magazines per month sold at an average price of $4.75 per magazine. When the price of these Health & Fitness magazines rose to $5.00 each, the quantity sold fell to 725 magazines per month, while the quantity supplied to her increased to 900 a month. From the scenario described, answer the questions below. Draw an appropriate graph for Grand Central’s Bookstore’s to illustrate this change in the Health & Fitness magazines market position when the price rises to $5.00. Calculate the price elasticity of demand for the Health & Fitness magazines between prices $4.75 and $5.00. Is it elastic or inelastic? How do you know? Calculate the price elasticity of supply for the Health & Fitness magazines between prices $4.75 and $5.00. Is it elastic or inelastic? How do you know based on your answer? The owner also noticed that…arrow_forwardIn the accompanying graph, is the slope of curve AA' positive or negative? Does the slope increase or decrease as we move along the curve from A to A'? Answer the same two questions for curve BB' B A' B a. The slope of AA' is (Click to select) b. As we move from A to A' the slope [(Click to select) c. The slope of BB' is (Click to select) d. As we move from B to B' the slope (Click to select)arrow_forwardThe following table shows the weekly demand and supply in the market for ice cream in New York City. Price Quantity Demanded Quantity Supplied (Dollars per gallon of ice cream) (Gallons of ice cream) (Gallons of ice cream) 4 2,000 200 8 1,600 600 12 1,200 800 16 800 1,200 20 400 1,800 Based on the preceding table, plot the demand for ice cream on the following graph using the blue points (circle symbol). Next, plot the supply of ice cream using the orange points (square symbol). Finally, use the black point (cross symbol) to indicate the equilibrium price and quantity in the market for ice cream. DemandSupplyEquilibrium0400800120016002000240024201612840PRICE (Dollars per gallon of ice cream)QUANTITY (Gallons of ice creamarrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
Macroeconomics: Principles and Policy (MindTap Co...EconomicsISBN:9781305280601Author:William J. Baumol, Alan S. BlinderPublisher:Cengage Learning
Microeconomics: Principles & PolicyEconomicsISBN:9781337794992Author:William J. Baumol, Alan S. Blinder, John L. SolowPublisher:Cengage Learning
Economics (MindTap Course List)EconomicsISBN:9781337617383Author:Roger A. ArnoldPublisher:Cengage Learning
Macroeconomics: Principles and Policy (MindTap Co...
Economics
ISBN:9781305280601
Author:William J. Baumol, Alan S. Blinder
Publisher:Cengage Learning
Microeconomics: Principles & Policy
Economics
ISBN:9781337794992
Author:William J. Baumol, Alan S. Blinder, John L. Solow
Publisher:Cengage Learning
Economics (MindTap Course List)
Economics
ISBN:9781337617383
Author:Roger A. Arnold
Publisher:Cengage Learning