(a)
Identify the changes in
(a)
Explanation of Solution
If the demand rises and supply is constant, the equilibrium
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 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
Macroeconomics
- Explain how much of emotional, mental and physical toll makes it so difficult to break the cycle of poverty.arrow_forwardCase Study: The Impact of Ebola on Tax Revenue in the DRC Background: The Democratic Republic of the Congo has experienced mulitiple outbreaks, with the 2018-2020 outbreak being one of the most severe. The outbreak had profound effects on public health, the economy and government operations. The DRC's economy already fragile due to policital instability and conflict, faced additional stain as the Ebola virus spread across several provinces. Economic disruption: The Ebola outbreak led to significant disruptions in the affected regions. Businesses were forced to close or reduce operations due to quarantine measures and the fear of contagion. this resulted in a sharp decline in economic activities, particularly in sectors such as agriculute, mining and trade. reduced consumer spending and interruptions in supply chains further exacerbated the economic downturn. Impact on Tax Revenue: the economic…arrow_forwardKey shortcomings of the Human Capital approach to measuring the monetary value of benefits of new treatments are that it Will generate lower benefits for male lives on average Will generate higher benefits for female lives on average Will tend to OVERVALUE improvements in quality of life Will tend to UNDERVALUE improved survival for people out of labour forcearrow_forward
- One of the key concepts in economics that underpins the necessity of making tough choices and confronting difficult tradeoffs through some form of collective decision-making is called Production Consumption Exchange Equity Scarcityarrow_forwardAllocative efficiency WITHIN the health care sector refers to What mix of nonmedical and medical goods and services should be produced in the macro-economy What mix of medical goods and services should be produced in the health economy What specific health care resources should be used to produce the chosen medical goods and services Who should receive the medical goods and services that are producedarrow_forwardProduction efficiency is most concerned with Choice of inputs in production process Quantity of outputs resulting from the production process The technological process of production All of the abovearrow_forward
- Choose all of the following that are assumed to be constant while constructing the production possibilities curve Technology Precise mix of inputs Institutional arrangements like judicial protection of business contracts Outputsarrow_forwardA point that lies OUTSIDE of the PPC can be achieved if A major technological innovation increases production efficiency A sudden influx of resources e.g., massive immigration of trained nurses Economic reform resulting in greater protection of intellectual property rights All of the above Only options 1 and 2arrow_forwardThe marginal benefit from each successive unit of medical care consumed declines BECAUSE each successive unit is more expensive to produce True Falsearrow_forward
- In the Human Capital approach, estimated monetary worth of life is MOST SENSITIVE to which key indicator Discount rate Social security payroll taxes Labour market earnings Workplace injury compensationarrow_forwardOver the last few decades out-of-pocket costs have formed a DECLINING proportion of total consumer expenditure on medical care True Falsearrow_forwardCost benefit analyses often assumes the following about consumers EXCEPT Consumers have clear preferences among choices they are exposed to Consumers purposely choose actions that result in higher satisfaction Consumers factor in uncertainty of outcomes in their decision-making regarding net benefits and costs Consumers lack information about attributes of market goods that are necessary for ranking their choice setarrow_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