(a)
Identify the changes in
(a)
Explanation of Solution
If the
Equilibrium price: Equilibrium price is the market price determined by the interaction between the quantity demanded and the quantity supplied.
Equilibrium quantity: Equilibrium quantity is the point where the quantity demanded is equal to the quantity supplied.
Supply: Supply refers to the total value of the goods and services available for purchase at a particular price in a given period of time.
(b)
Identify the changes in equilibrium price and equilibrium quantity.
(b)
Explanation of Solution
If the demand falls and supply is constant, the equilibrium price and equilibrium quantity would decrease. The decrease in demand shifts the demand curve leftward, which leads to shift the equilibrium point. At the new equilibrium point, the price level and quantity demanded are lesser.
Equilibrium price: Equilibrium price is the market price determined by the interaction between the quantity demanded and the quantity supplied.
Equilibrium quantity: Equilibrium quantity is the point where the quantity demanded is equal to the quantity supplied.
Demand: Demand refers to the total value of the goods and services that are demanded at a particular price in a given period of time.
Supply: Supply refers to the total value of the goods and services that are available for purchase at a particular price in a given period of time.
(c)
Identify the changes in equilibrium price and equilibrium quantity.
(c)
Explanation of Solution
If the supply rises and demand is constant, the equilibrium price would fall and equilibrium quantity would increase. An increase in supply shifts the supply curve rightward, which leads to shift the equilibrium point. At the new aquarium point, the price is lower and quantity demanded is higher.
Equilibrium price: Equilibrium price is the market price determined by the interaction between the quantity demanded and the quantity supplied.
Equilibrium quantity: Equilibrium quantity is the point where the quantity demanded is equal to the quantity supplied.
Demand: Demand refers to the total value of the goods and services that are demanded at a particular price in a given period of time.
Supply: Supply refers to the total value of the goods and services that are available for purchase at a particular price in a given period of time.
(d)
Identify the changes in equilibrium price and equilibrium quantity.
(d)
Explanation of Solution
If the supply falls and demand is constant, the equilibrium price would rise and equilibrium quantity would fall. The fall in supply shifts the supply curve leftward, which leads to shift the equilibrium point. At the new aquarium point, the price is higher and the quantity demanded is lower.
Equilibrium price: Equilibrium price is the market price determined by the interaction between the quantity demanded and the quantity supplied.
Equilibrium quantity: Equilibrium quantity is the point where the quantity demanded is equal to the quantity supplied.
Demand: Demand refers to the total value of the goods and services that are demanded at a particular price in a given period of time.
Supply: Supply refers to the total value of the goods and services that are available for purchase at a particular price in a given period of time.
(e)
Identify the changes in equilibrium price and equilibrium quantity.
(e)
Explanation of Solution
If the demand rises by the same amount as the supply falls, the equilibrium price would increase and quantity demanded would remain the same.
Equilibrium price: Equilibrium price is the market price determined by the interaction between the quantity demanded and the quantity supplied.
Equilibrium quantity: Equilibrium quantity is the point where the quantity demanded is equal to the quantity supplied.
Demand: Demand refers to the total value of the goods and services that are demanded at a particular price in a given period of time.
Supply: Supply refers to the total value of the goods and services that are available for purchase at a particular price in a given period of time.
(f)
Identify the changes in equilibrium price and equilibrium quantity.
(f)
Explanation of Solution
If the demand falls by the same amount as supply rises, the equilibrium price would decrease and quantity demanded would remain the same.
Equilibrium price: Equilibrium price is the market price determined by the interaction between the quantity demanded and the quantity supplied.
Equilibrium quantity: Equilibrium quantity is the point where the quantity demanded is equal to the quantity supplied.
Demand: Demand refers to the total value of the goods and services that are demanded at a particular price in a given period of time.
Supply: Supply refers to the total value of the goods and services that are available for purchase at a particular price in a given period of time.
(g)
Identify the changes in equilibrium price and equilibrium quantity.
(g)
Explanation of Solution
If the demand falls less than the supply rises, the equilibrium price would decrease and equilibrium quantity would rise.
Equilibrium price: Equilibrium price is the market price determined by the interaction between the quantity demanded and the quantity supplied.
Equilibrium quantity: Equilibrium quantity is the point where the quantity demanded is equal to the quantity supplied.
Demand: Demand refers to the total value of the goods and services that are demanded at a particular price in a given period of time.
Supply: Supply refers to the total value of the goods and services that are available for purchase at a particular price in a given period of time.
(h)
Identify the changes in equilibrium price and equilibrium quantity.
(h)
Explanation of Solution
If the demand rises more than supply rises, the equilibrium price and quantity would increase.
Equilibrium price: Equilibrium price is the market price determined by the interaction between the quantity demanded and the quantity supplied.
Equilibrium quantity: Equilibrium quantity is the point where the quantity demanded is equal to the quantity supplied.
Demand: Demand refers to the total value of the goods and services that are demanded at a particular price in a given period of time.
Supply: Supply refers to the total value of the goods and services that are available for purchase at a particular price in a given period of time.
(i)
Identify the changes in equilibrium price and equilibrium quantity.
(i)
Explanation of Solution
If the demand rises less than the supply rises, the equilibrium price would fall and quantity would increase.
Equilibrium price: Equilibrium price is the market price determined by the interaction between the quantity demanded and the quantity supplied.
Equilibrium quantity: Equilibrium quantity is the point where the quantity demanded is equal to the quantity supplied.
Demand: Demand refers to the total value of the goods and services that are demanded at a particular price in a given period of time.
Supply: Supply refers to the total value of the goods and services that are available for purchase at a particular price in a given period of time.
(j)
Identify the changes in equilibrium price and equilibrium quantity.
(j)
Explanation of Solution
If the demand falls more than the supply falls, the equilibrium price and quantity would decrease.
Equilibrium price: Equilibrium price is the market price determined by the interaction between the quantity demanded and the quantity supplied.
Equilibrium quantity: Equilibrium quantity is the point where the quantity demanded is equal to the quantity supplied.
Demand: Demand refers to the total value of the goods and services that are demanded at a particular price in a given period of time.
Supply: Supply refers to the total value of the goods and services that are available for purchase at a particular price in a given period of time.
(k)
Identify the changes in equilibrium price and equilibrium quantity.
(k)
Explanation of Solution
If the demand falls less than the supply falls, the equilibrium price would increase and quantity would decrease.
Equilibrium price: Equilibrium price is the market price determined by the interaction between the quantity demanded and the quantity supplied.
Equilibrium quantity: Equilibrium quantity is the point where the quantity demanded is equal to the quantity supplied.
Demand: Demand refers to the total value of the goods and services that are demanded at a particular price in a given period of time.
Supply: Supply refers to the total value of the goods and services that are available for purchase at a particular price in a given period of time.
Want to see more full solutions like this?
Chapter 3 Solutions
Microeconomics (with Digital Assets, 2 terms (12 months) Printed Access Card) (MindTap Course List)
- Not use ai pleasearrow_forward2. Every time we start to have fun, the government ruins it! You run a construction company where you build residential homes. For the past 3 years, demand for new homes has risen significantly, and your company tripled its size. The main driver for the rise in demand is high GDP growth. People are making good incomes, and they are demanding more houses. The positive outlook many people have about the economy makes you believe that you need to expand your business even further to another state, which requires you to open an office there and hire at least 50 people. While sitting with your family in the evening enjoying some sweets and watching TV, you heard the news reporter state the following: "The central bank has decided to raise interest rates to influence consumer spending to try to control inflation. The economy has been doing very well for 3 consecutive years, and economic growth is still accelerating, which could lead to a spike in prices." Your spouse, who was watching TV…arrow_forward1. You only need to speak 400 languages in Sudan! Sudan, a country rich in culture and natural resources, is in the northeastern part of the continent of Africa. Sudan has more than 500 distinct ethnic groups and over 400 languages. According to the International Monetary Fund, GDP growth rate in Sudan was negative 4.2% (-4.2%) as of April of 2024. Two politicians came forward and proposed different ways to solve the GDP negative growth and to achieve full employment. They are Mr. Abdul and Mrs. Ibrahim. Mr. Abdul’s proposal is this: Because people don’t have money to spend, let’s give them $5,000 each. This way they can have what they need and improve their standard of living. Their demand for goods and services will then stimulate production and, thus, the demand for labor, leading to a lower unemployment rate. Mrs. Ibrahim’s proposal is this: Because production in the economy is low, leading to a decline in GDP, let’s lower the interest rate so people will borrow more money to…arrow_forward
- You are the manager of a monopoly that sells a product to two groups of consumers in different parts of the country. Analysts at your firm have determined that group s elasticity of demand is while group s is Your marginal cost of producing the product is $ a Determine your optimal markups and prices under thirddegree price discrimination. b Identify the conditions under which thirddegree price discrimination enhances profits.arrow_forwardDon't used hand raiting and don't used Ai solutionarrow_forwardDemand and supply functionarrow_forward
- Not use ai pleasearrow_forwardThanks!arrow_forwardIf there is an oil shock, what will happen to the market for thick metal tables (they are very heavy)? Group of answer choices P decreases and Q increases. P decreases and Q decreases. P increases and Q decreases. P increases and Q increases.arrow_forward
- Facebook (not Mark Zuckerberg) would do which of the following actions according the Circular Flow diagram? Group of answer choices Buys, but does not sell. Sell and Buy (or Rent). Does not sell nor buys. Sell, but does not buy.arrow_forwardFirms would do which of the following actions according the Circular Flow diagram? Group of answer choices Sell, but does not buy. Sell and Buy (or Rent). Buys, but does not sell. Does not sell nor buys.arrow_forwardWhen the price of a good or a service increases, _______? Group of answer choices The demand curve shifts in the same direction. The supply curve shifts in the opposite direction. The demand curve shifts in the opposite direction. There is a movement along the demand curve.arrow_forward
Economics (MindTap Course List)EconomicsISBN:9781337617383Author:Roger A. ArnoldPublisher:Cengage Learning
Essentials of Economics (MindTap Course List)EconomicsISBN:9781337091992Author:N. Gregory MankiwPublisher:Cengage Learning
Brief Principles of Macroeconomics (MindTap Cours...EconomicsISBN:9781337091985Author:N. Gregory MankiwPublisher:Cengage Learning
Exploring EconomicsEconomicsISBN:9781544336329Author:Robert L. SextonPublisher:SAGE Publications, Inc