Demand and supply.

Question

Want to see more full solutions like this?

Answer 1

Question

Chapter 3, Problem 4P

Subpart (a):

To determine

Demand and supply.

Subpart (a):

Expert Solution

Answer to Problem 4P

Price shifts up and quantity shifts down – a.

Explanation of Solution

When the supply decreases with constant demand curve, it will lead to a decrease in the equilibrium quantity and an increase in the equilibrium price. This is shown below in Figure -1:

Microeconomics: Principles, Problems, & Policies (McGraw-Hill Series in Economics), Chapter 3, Problem 4P , additional homework tip 1

Figure -1

In Figure -1, the horizontal axis measures the quantity supplied and the vertical axis measures the price of the balls. ‘DD’ represents the demand and the demand curve shifts from DD to DD1; ‘SS’ represents the supply curve and the supply curve shifts from SS to SS1. Decrease in supply will lead to a decrease in the equilibrium quantity from ‘Q1 to Q2’ and an increase in the equilibrium price from ‘P1 to P2’.

Economics Concept Introduction

Concept introduction:

Demand: Demand refers to the total value of the goods and services that are demanded at a particular price in the 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 the given period of time.

Subpart (b):

To determine

Demand and supply.

Subpart (b):

Expert Solution

Answer to Problem 4P

Price shifts down and quantity shifts down – b.

Explanation of Solution

When the demand decreases with constant supply curve, it will lead to a decrease in the equilibrium quantity and equilibrium price. This is shown below in Figure -2:

Microeconomics: Principles, Problems, & Policies (McGraw-Hill Series in Economics), Chapter 3, Problem 4P , additional homework tip 2

Figure -2

In Figure -2, the horizontal axis measures the quantity supplied and the vertical axis measures the price of the balls. ‘DD’ represents the demand and the demand curve shifts to the left from DD to DD1; ‘SS’ represents the supply curve. Decrease in supply will lead to a decrease in the equilibrium quantity from ‘Q1 to Q2’ and the equilibrium price from ‘P1 to P2’.

Economics Concept Introduction

Concept introduction:

Demand: Demand refers to the total value of the goods and services that are demanded at a particular price in the 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 the given period of time.

Subpart (c):

To determine

Demand and supply.

Subpart (c):

Expert Solution

Answer to Problem 4P

Price shifts down and quantity shifts up – c.

Explanation of Solution

When the demand is constant with an increase in the supply curve, it will lead to a decrease in the equilibrium price and an increase in the equilibrium quantity. This is shown below in Figure -3:

Microeconomics: Principles, Problems, & Policies (McGraw-Hill Series in Economics), Chapter 3, Problem 4P , additional homework tip 3

Figure -3

In Figure -3, the horizontal axis measures the quantity supplied and the vertical axis measures the price of the balls. ‘DD’ represents the demand and ‘SS’ represents the supply curve and the supply curve shifts to the right from SS to SS1. Increase in supply will lead to a decrease in the equilibrium price from ‘P1 to P2’ and an increase in the equilibrium quantity from ‘Q1 to Q2’.

Economics Concept Introduction

Concept introduction:

Demand: Demand refers to the total value of the goods and services that are demanded at a particular price in the 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 the given period of time.

Subpart (d):

To determine

Demand and supply.

Subpart (d):

Expert Solution

Answer to Problem 4P

Price will indeterminate and quantity shifts up – d.

Explanation of Solution

When both the demand and supply increases, it will lead to an increase in the equilibrium quantity and the change in price is indeterminate. This is because an increase in the supply puts a downward pressure on the equilibrium price. This is shown below in Figure – 4:

Microeconomics: Principles, Problems, & Policies (McGraw-Hill Series in Economics), Chapter 3, Problem 4P , additional homework tip 4

Figure -4

In Figure -4, the horizontal axis measures the quantity supplied and the vertical axis measures the price of the balls. ‘DD’ represents the demand curve and ‘SS’ represents the supply curve. Due to the increase in supply and demand, the supply curve shifts to the right from SS to SS1 and the demand curve shifts from DD to DD1. An increase in the supply leads to an increase in the equilibrium price from ‘P1 to P2’ and the equilibrium quantity from ‘Q1 to Q2’.

Economics Concept Introduction

Concept introduction:

Demand: Demand refers to the total value of the goods and services that are demanded at a particular price in the 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 the given period of time.

Subpart (e):

To determine

Demand and supply.

Subpart (e):

Expert Solution

Answer to Problem 4P

Price shifts up and quantity shifts up – e.

Explanation of Solution

If the demand increases with constant supply, it leads to an increase in the equilibrium quantity and equilibrium price. This is shown below in Figure – 5:

Microeconomics: Principles, Problems, & Policies (McGraw-Hill Series in Economics), Chapter 3, Problem 4P , additional homework tip 5

Figure -5

In Figure -5, the horizontal axis measures the quantity supplied and the vertical axis measures the price of the balls. ‘DD’ represents the demand curve and ‘SS’ represents the supply curve. Due to an increase in demand, the demand curve will shift the curve to the right from DD to DD1. An increase in demand will increase the equilibrium price from ‘P1 to P2’ and increases the equilibrium quantity from ‘Q1 to Q2’.

Economics Concept Introduction

Concept introduction:

Demand: Demand refers to the total value of the goods and services that are demanded at a particular price in the 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 the given period of time.

Subpart (f):

To determine

Demand and supply.

Subpart (f):

Expert Solution

Answer to Problem 4P

Price shifts down and quantity indeterminate – f.

Explanation of Solution

If the supply increases with a decrease in demand, it leads to a decrease in the equilibrium price because both the curves put a pressure on the equilibrium price. Thus, an increase in supply increases the equilibrium quantity and a decrease in demand lead to a decrease in the equilibrium quantity. This is shown below in Figure – 6:

Microeconomics: Principles, Problems, & Policies (McGraw-Hill Series in Economics), Chapter 3, Problem 4P , additional homework tip 6

Figure -6

In Figure -6, the horizontal axis measures the quantity supplied and the vertical axis measures the price of the balls. ‘DD’ represents the demand curve and ‘SS’ represents the supply curve. Due to a decrease in demand and an increase in supply, demand curve will shift the curve to the left from DD to DD1. An increase in supply will lead to an increase in the equilibrium quantity from ‘P1 to P2’ and increases the equilibrium quantity from ‘Q1 to Q2’.

Economics Concept Introduction

Concept introduction:

Demand: Demand refers to the total value of the goods and services that are demanded at a particular price in the 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 the given period of time.

Subpart (g):

To determine

Demand and supply.

Subpart (g):

Expert Solution

Answer to Problem 4P

Price shifts up and quantity indeterminate – g.

Explanation of Solution

If the supply decreases with an increase in demand, it will lead to an increase in the equilibrium price because both the curve put a pressure on the equilibrium price. An increase in demand will lead to an increase in the equilibrium quantity. This is shown below in Figure – 7:

Microeconomics: Principles, Problems, & Policies (McGraw-Hill Series in Economics), Chapter 3, Problem 4P , additional homework tip 7

Figure -7

In Figure -7, the horizontal axis measures the quantity supplied and the vertical axis measures the price of the balls. ‘DD’ represents the demand and ‘SS’ represents the supply curve. Due to a decrease in supply and an increase in demand, the supply curve will shift the curve to the left from SS to SS1 and the demand curve shifts the curve to the right, which leads to an increase in the equilibrium price from ‘P1 to P2’ and the equilibrium quantity from ‘Q1 to Q2’.

Economics Concept Introduction

Concept introduction:

Demand: Demand refers to the total value of the goods and services that are demanded at a particular price in the 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 the given period of time.

Subpart (h):

To determine

Demand and supply.

Subpart (h):

Expert Solution

Answer to Problem 4P

Price indeterminate and quantity shifts down – h.

Explanation of Solution

If both the supply and demand decreases, then it lead to a decrease in the equilibrium quantity and the change in equilibrium price is indeterminate. This is because a decrease in supply puts an upward pressure on the equilibrium price. This is shown below in Figure – 8:

Microeconomics: Principles, Problems, & Policies (McGraw-Hill Series in Economics), Chapter 3, Problem 4P , additional homework tip 8

Figure -8

In Figure -8, the horizontal axis measures the quantity supplied and the vertical axis measures the price of the balls. ‘DD’ represents the demand and ‘SS’ represents the supply curve. Due to a decrease in supply and a decrease in demand, the supply curve will shift the curve to the left from SS to SS1 and the demand curve shifts the curve to the left, which lead to an increase in the equilibrium price from ‘P1 to P2’ and a decrease in the equilibrium quantity from ‘Q1 to Q2’.

Economics Concept Introduction

Concept introduction:

Demand: Demand refers to the total value of the goods and services that are demanded at a particular price in the 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 the given period of time.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Students have asked these similar questions

please help me answer all parts of the question

please make sure the answer is correct 100%

3. Refer to the expanded table below from review question 8. LO3.4 a. What is the equilibrium price? At what price is there nei- ther a shortage nor a surplus? Fill in the surplus-shortage column and use it to confirm your answers. b. Graph the demand for wheat and the supply of wheat. Be sure to label the axes of your graph correctly. Label equi- librium price Pand equilibrium quantity Q. c. How big is the surplus or shortage at $3.40? At $4.90? How big a surplus or shortage results if the price is 60 cents higher than the equilibrium price? 30 cents lower than the equilibrium price? Thousands of Bushels Surplus (+) or Shortage (-) Thousands Price per Bushel of Bushels Supplied Demanded 85 $3.40 72 80 3.70 73 75 4.00 75 70 4.30 77 65 4.60 79 60 4.90 81

Answer 2

Question

Chapter 3, Problem 4P

Subpart (a):

To determine

Demand and supply.

Subpart (a):

Expert Solution

Answer to Problem 4P

Price shifts up and quantity shifts down – a.

Explanation of Solution

When the supply decreases with constant demand curve, it will lead to a decrease in the equilibrium quantity and an increase in the equilibrium price. This is shown below in Figure -1:

Microeconomics: Principles, Problems, & Policies (McGraw-Hill Series in Economics), Chapter 3, Problem 4P , additional homework tip 1

Figure -1

In Figure -1, the horizontal axis measures the quantity supplied and the vertical axis measures the price of the balls. ‘DD’ represents the demand and the demand curve shifts from DD to DD1; ‘SS’ represents the supply curve and the supply curve shifts from SS to SS1. Decrease in supply will lead to a decrease in the equilibrium quantity from ‘Q1 to Q2’ and an increase in the equilibrium price from ‘P1 to P2’.

Economics Concept Introduction

Concept introduction:

Demand: Demand refers to the total value of the goods and services that are demanded at a particular price in the 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 the given period of time.

Subpart (b):

To determine

Demand and supply.

Subpart (b):

Expert Solution

Answer to Problem 4P

Price shifts down and quantity shifts down – b.

Explanation of Solution

When the demand decreases with constant supply curve, it will lead to a decrease in the equilibrium quantity and equilibrium price. This is shown below in Figure -2:

Microeconomics: Principles, Problems, & Policies (McGraw-Hill Series in Economics), Chapter 3, Problem 4P , additional homework tip 2

Figure -2

In Figure -2, the horizontal axis measures the quantity supplied and the vertical axis measures the price of the balls. ‘DD’ represents the demand and the demand curve shifts to the left from DD to DD1; ‘SS’ represents the supply curve. Decrease in supply will lead to a decrease in the equilibrium quantity from ‘Q1 to Q2’ and the equilibrium price from ‘P1 to P2’.

Economics Concept Introduction

Concept introduction:

Demand: Demand refers to the total value of the goods and services that are demanded at a particular price in the 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 the given period of time.

Subpart (c):

To determine

Demand and supply.

Subpart (c):

Expert Solution

Answer to Problem 4P

Price shifts down and quantity shifts up – c.

Explanation of Solution

When the demand is constant with an increase in the supply curve, it will lead to a decrease in the equilibrium price and an increase in the equilibrium quantity. This is shown below in Figure -3:

Microeconomics: Principles, Problems, & Policies (McGraw-Hill Series in Economics), Chapter 3, Problem 4P , additional homework tip 3

Figure -3

In Figure -3, the horizontal axis measures the quantity supplied and the vertical axis measures the price of the balls. ‘DD’ represents the demand and ‘SS’ represents the supply curve and the supply curve shifts to the right from SS to SS1. Increase in supply will lead to a decrease in the equilibrium price from ‘P1 to P2’ and an increase in the equilibrium quantity from ‘Q1 to Q2’.

Economics Concept Introduction

Concept introduction:

Demand: Demand refers to the total value of the goods and services that are demanded at a particular price in the 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 the given period of time.

Subpart (d):

To determine

Demand and supply.

Subpart (d):

Expert Solution

Answer to Problem 4P

Price will indeterminate and quantity shifts up – d.

Explanation of Solution

When both the demand and supply increases, it will lead to an increase in the equilibrium quantity and the change in price is indeterminate. This is because an increase in the supply puts a downward pressure on the equilibrium price. This is shown below in Figure – 4:

Microeconomics: Principles, Problems, & Policies (McGraw-Hill Series in Economics), Chapter 3, Problem 4P , additional homework tip 4

Figure -4

In Figure -4, the horizontal axis measures the quantity supplied and the vertical axis measures the price of the balls. ‘DD’ represents the demand curve and ‘SS’ represents the supply curve. Due to the increase in supply and demand, the supply curve shifts to the right from SS to SS1 and the demand curve shifts from DD to DD1. An increase in the supply leads to an increase in the equilibrium price from ‘P1 to P2’ and the equilibrium quantity from ‘Q1 to Q2’.

Economics Concept Introduction

Concept introduction:

Demand: Demand refers to the total value of the goods and services that are demanded at a particular price in the 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 the given period of time.

Subpart (e):

To determine

Demand and supply.

Subpart (e):

Expert Solution

Answer to Problem 4P

Price shifts up and quantity shifts up – e.

Explanation of Solution

If the demand increases with constant supply, it leads to an increase in the equilibrium quantity and equilibrium price. This is shown below in Figure – 5:

Microeconomics: Principles, Problems, & Policies (McGraw-Hill Series in Economics), Chapter 3, Problem 4P , additional homework tip 5

Figure -5

In Figure -5, the horizontal axis measures the quantity supplied and the vertical axis measures the price of the balls. ‘DD’ represents the demand curve and ‘SS’ represents the supply curve. Due to an increase in demand, the demand curve will shift the curve to the right from DD to DD1. An increase in demand will increase the equilibrium price from ‘P1 to P2’ and increases the equilibrium quantity from ‘Q1 to Q2’.

Economics Concept Introduction

Concept introduction:

Demand: Demand refers to the total value of the goods and services that are demanded at a particular price in the 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 the given period of time.

Subpart (f):

To determine

Demand and supply.

Subpart (f):

Expert Solution

Answer to Problem 4P

Price shifts down and quantity indeterminate – f.

Explanation of Solution

If the supply increases with a decrease in demand, it leads to a decrease in the equilibrium price because both the curves put a pressure on the equilibrium price. Thus, an increase in supply increases the equilibrium quantity and a decrease in demand lead to a decrease in the equilibrium quantity. This is shown below in Figure – 6:

Microeconomics: Principles, Problems, & Policies (McGraw-Hill Series in Economics), Chapter 3, Problem 4P , additional homework tip 6

Figure -6

In Figure -6, the horizontal axis measures the quantity supplied and the vertical axis measures the price of the balls. ‘DD’ represents the demand curve and ‘SS’ represents the supply curve. Due to a decrease in demand and an increase in supply, demand curve will shift the curve to the left from DD to DD1. An increase in supply will lead to an increase in the equilibrium quantity from ‘P1 to P2’ and increases the equilibrium quantity from ‘Q1 to Q2’.

Economics Concept Introduction

Concept introduction:

Demand: Demand refers to the total value of the goods and services that are demanded at a particular price in the 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 the given period of time.

Subpart (g):

To determine

Demand and supply.

Subpart (g):

Expert Solution

Answer to Problem 4P

Price shifts up and quantity indeterminate – g.

Explanation of Solution

If the supply decreases with an increase in demand, it will lead to an increase in the equilibrium price because both the curve put a pressure on the equilibrium price. An increase in demand will lead to an increase in the equilibrium quantity. This is shown below in Figure – 7:

Microeconomics: Principles, Problems, & Policies (McGraw-Hill Series in Economics), Chapter 3, Problem 4P , additional homework tip 7

Figure -7

In Figure -7, the horizontal axis measures the quantity supplied and the vertical axis measures the price of the balls. ‘DD’ represents the demand and ‘SS’ represents the supply curve. Due to a decrease in supply and an increase in demand, the supply curve will shift the curve to the left from SS to SS1 and the demand curve shifts the curve to the right, which leads to an increase in the equilibrium price from ‘P1 to P2’ and the equilibrium quantity from ‘Q1 to Q2’.

Economics Concept Introduction

Concept introduction:

Demand: Demand refers to the total value of the goods and services that are demanded at a particular price in the 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 the given period of time.

Subpart (h):

To determine

Demand and supply.

Subpart (h):

Expert Solution

Answer to Problem 4P

Price indeterminate and quantity shifts down – h.

Explanation of Solution

If both the supply and demand decreases, then it lead to a decrease in the equilibrium quantity and the change in equilibrium price is indeterminate. This is because a decrease in supply puts an upward pressure on the equilibrium price. This is shown below in Figure – 8:

Microeconomics: Principles, Problems, & Policies (McGraw-Hill Series in Economics), Chapter 3, Problem 4P , additional homework tip 8

Figure -8

In Figure -8, the horizontal axis measures the quantity supplied and the vertical axis measures the price of the balls. ‘DD’ represents the demand and ‘SS’ represents the supply curve. Due to a decrease in supply and a decrease in demand, the supply curve will shift the curve to the left from SS to SS1 and the demand curve shifts the curve to the left, which lead to an increase in the equilibrium price from ‘P1 to P2’ and a decrease in the equilibrium quantity from ‘Q1 to Q2’.

Economics Concept Introduction

Concept introduction:

Demand: Demand refers to the total value of the goods and services that are demanded at a particular price in the 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 the given period of time.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 3

Question

Chapter 3, Problem 4P

Subpart (a):

To determine

Demand and supply.

Subpart (a):

Expert Solution

Answer to Problem 4P

Price shifts up and quantity shifts down – a.

Explanation of Solution

When the supply decreases with constant demand curve, it will lead to a decrease in the equilibrium quantity and an increase in the equilibrium price. This is shown below in Figure -1:

Microeconomics: Principles, Problems, & Policies (McGraw-Hill Series in Economics), Chapter 3, Problem 4P , additional homework tip 1

Figure -1

In Figure -1, the horizontal axis measures the quantity supplied and the vertical axis measures the price of the balls. ‘DD’ represents the demand and the demand curve shifts from DD to DD1; ‘SS’ represents the supply curve and the supply curve shifts from SS to SS1. Decrease in supply will lead to a decrease in the equilibrium quantity from ‘Q1 to Q2’ and an increase in the equilibrium price from ‘P1 to P2’.

Economics Concept Introduction

Concept introduction:

Demand: Demand refers to the total value of the goods and services that are demanded at a particular price in the 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 the given period of time.

Subpart (b):

To determine

Demand and supply.

Subpart (b):

Expert Solution

Answer to Problem 4P

Price shifts down and quantity shifts down – b.

Explanation of Solution

When the demand decreases with constant supply curve, it will lead to a decrease in the equilibrium quantity and equilibrium price. This is shown below in Figure -2:

Microeconomics: Principles, Problems, & Policies (McGraw-Hill Series in Economics), Chapter 3, Problem 4P , additional homework tip 2

Figure -2

In Figure -2, the horizontal axis measures the quantity supplied and the vertical axis measures the price of the balls. ‘DD’ represents the demand and the demand curve shifts to the left from DD to DD1; ‘SS’ represents the supply curve. Decrease in supply will lead to a decrease in the equilibrium quantity from ‘Q1 to Q2’ and the equilibrium price from ‘P1 to P2’.

Economics Concept Introduction

Concept introduction:

Demand: Demand refers to the total value of the goods and services that are demanded at a particular price in the 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 the given period of time.

Subpart (c):

To determine

Demand and supply.

Subpart (c):

Expert Solution

Answer to Problem 4P

Price shifts down and quantity shifts up – c.

Explanation of Solution

When the demand is constant with an increase in the supply curve, it will lead to a decrease in the equilibrium price and an increase in the equilibrium quantity. This is shown below in Figure -3:

Microeconomics: Principles, Problems, & Policies (McGraw-Hill Series in Economics), Chapter 3, Problem 4P , additional homework tip 3

Figure -3

In Figure -3, the horizontal axis measures the quantity supplied and the vertical axis measures the price of the balls. ‘DD’ represents the demand and ‘SS’ represents the supply curve and the supply curve shifts to the right from SS to SS1. Increase in supply will lead to a decrease in the equilibrium price from ‘P1 to P2’ and an increase in the equilibrium quantity from ‘Q1 to Q2’.

Economics Concept Introduction

Concept introduction:

Demand: Demand refers to the total value of the goods and services that are demanded at a particular price in the 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 the given period of time.

Subpart (d):

To determine

Demand and supply.

Subpart (d):

Expert Solution

Answer to Problem 4P

Price will indeterminate and quantity shifts up – d.

Explanation of Solution

When both the demand and supply increases, it will lead to an increase in the equilibrium quantity and the change in price is indeterminate. This is because an increase in the supply puts a downward pressure on the equilibrium price. This is shown below in Figure – 4:

Microeconomics: Principles, Problems, & Policies (McGraw-Hill Series in Economics), Chapter 3, Problem 4P , additional homework tip 4

Figure -4

In Figure -4, the horizontal axis measures the quantity supplied and the vertical axis measures the price of the balls. ‘DD’ represents the demand curve and ‘SS’ represents the supply curve. Due to the increase in supply and demand, the supply curve shifts to the right from SS to SS1 and the demand curve shifts from DD to DD1. An increase in the supply leads to an increase in the equilibrium price from ‘P1 to P2’ and the equilibrium quantity from ‘Q1 to Q2’.

Economics Concept Introduction

Concept introduction:

Demand: Demand refers to the total value of the goods and services that are demanded at a particular price in the 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 the given period of time.

Subpart (e):

To determine

Demand and supply.

Subpart (e):

Expert Solution

Answer to Problem 4P

Price shifts up and quantity shifts up – e.

Explanation of Solution

If the demand increases with constant supply, it leads to an increase in the equilibrium quantity and equilibrium price. This is shown below in Figure – 5:

Microeconomics: Principles, Problems, & Policies (McGraw-Hill Series in Economics), Chapter 3, Problem 4P , additional homework tip 5

Figure -5

In Figure -5, the horizontal axis measures the quantity supplied and the vertical axis measures the price of the balls. ‘DD’ represents the demand curve and ‘SS’ represents the supply curve. Due to an increase in demand, the demand curve will shift the curve to the right from DD to DD1. An increase in demand will increase the equilibrium price from ‘P1 to P2’ and increases the equilibrium quantity from ‘Q1 to Q2’.

Economics Concept Introduction

Concept introduction:

Demand: Demand refers to the total value of the goods and services that are demanded at a particular price in the 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 the given period of time.

Subpart (f):

To determine

Demand and supply.

Subpart (f):

Expert Solution

Answer to Problem 4P

Price shifts down and quantity indeterminate – f.

Explanation of Solution

If the supply increases with a decrease in demand, it leads to a decrease in the equilibrium price because both the curves put a pressure on the equilibrium price. Thus, an increase in supply increases the equilibrium quantity and a decrease in demand lead to a decrease in the equilibrium quantity. This is shown below in Figure – 6:

Microeconomics: Principles, Problems, & Policies (McGraw-Hill Series in Economics), Chapter 3, Problem 4P , additional homework tip 6

Figure -6

In Figure -6, the horizontal axis measures the quantity supplied and the vertical axis measures the price of the balls. ‘DD’ represents the demand curve and ‘SS’ represents the supply curve. Due to a decrease in demand and an increase in supply, demand curve will shift the curve to the left from DD to DD1. An increase in supply will lead to an increase in the equilibrium quantity from ‘P1 to P2’ and increases the equilibrium quantity from ‘Q1 to Q2’.

Economics Concept Introduction

Concept introduction:

Demand: Demand refers to the total value of the goods and services that are demanded at a particular price in the 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 the given period of time.

Subpart (g):

To determine

Demand and supply.

Subpart (g):

Expert Solution

Answer to Problem 4P

Price shifts up and quantity indeterminate – g.

Explanation of Solution

If the supply decreases with an increase in demand, it will lead to an increase in the equilibrium price because both the curve put a pressure on the equilibrium price. An increase in demand will lead to an increase in the equilibrium quantity. This is shown below in Figure – 7:

Microeconomics: Principles, Problems, & Policies (McGraw-Hill Series in Economics), Chapter 3, Problem 4P , additional homework tip 7

Figure -7

In Figure -7, the horizontal axis measures the quantity supplied and the vertical axis measures the price of the balls. ‘DD’ represents the demand and ‘SS’ represents the supply curve. Due to a decrease in supply and an increase in demand, the supply curve will shift the curve to the left from SS to SS1 and the demand curve shifts the curve to the right, which leads to an increase in the equilibrium price from ‘P1 to P2’ and the equilibrium quantity from ‘Q1 to Q2’.

Economics Concept Introduction

Concept introduction:

Demand: Demand refers to the total value of the goods and services that are demanded at a particular price in the 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 the given period of time.

Subpart (h):

To determine

Demand and supply.

Subpart (h):

Expert Solution

Answer to Problem 4P

Price indeterminate and quantity shifts down – h.

Explanation of Solution

If both the supply and demand decreases, then it lead to a decrease in the equilibrium quantity and the change in equilibrium price is indeterminate. This is because a decrease in supply puts an upward pressure on the equilibrium price. This is shown below in Figure – 8:

Microeconomics: Principles, Problems, & Policies (McGraw-Hill Series in Economics), Chapter 3, Problem 4P , additional homework tip 8

Figure -8

In Figure -8, the horizontal axis measures the quantity supplied and the vertical axis measures the price of the balls. ‘DD’ represents the demand and ‘SS’ represents the supply curve. Due to a decrease in supply and a decrease in demand, the supply curve will shift the curve to the left from SS to SS1 and the demand curve shifts the curve to the left, which lead to an increase in the equilibrium price from ‘P1 to P2’ and a decrease in the equilibrium quantity from ‘Q1 to Q2’.

Economics Concept Introduction

Concept introduction:

Demand: Demand refers to the total value of the goods and services that are demanded at a particular price in the 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 the given period of time.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 4

Question

Chapter 3, Problem 4P

Subpart (a):

To determine

Demand and supply.

Subpart (a):

Expert Solution

Answer to Problem 4P

Price shifts up and quantity shifts down – a.

Explanation of Solution

When the supply decreases with constant demand curve, it will lead to a decrease in the equilibrium quantity and an increase in the equilibrium price. This is shown below in Figure -1:

Microeconomics: Principles, Problems, & Policies (McGraw-Hill Series in Economics), Chapter 3, Problem 4P , additional homework tip 1

Figure -1

In Figure -1, the horizontal axis measures the quantity supplied and the vertical axis measures the price of the balls. ‘DD’ represents the demand and the demand curve shifts from DD to DD1; ‘SS’ represents the supply curve and the supply curve shifts from SS to SS1. Decrease in supply will lead to a decrease in the equilibrium quantity from ‘Q1 to Q2’ and an increase in the equilibrium price from ‘P1 to P2’.

Economics Concept Introduction

Concept introduction:

Demand: Demand refers to the total value of the goods and services that are demanded at a particular price in the 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 the given period of time.

Subpart (b):

To determine

Demand and supply.

Subpart (b):

Expert Solution

Answer to Problem 4P

Price shifts down and quantity shifts down – b.

Explanation of Solution

When the demand decreases with constant supply curve, it will lead to a decrease in the equilibrium quantity and equilibrium price. This is shown below in Figure -2:

Microeconomics: Principles, Problems, & Policies (McGraw-Hill Series in Economics), Chapter 3, Problem 4P , additional homework tip 2

Figure -2

In Figure -2, the horizontal axis measures the quantity supplied and the vertical axis measures the price of the balls. ‘DD’ represents the demand and the demand curve shifts to the left from DD to DD1; ‘SS’ represents the supply curve. Decrease in supply will lead to a decrease in the equilibrium quantity from ‘Q1 to Q2’ and the equilibrium price from ‘P1 to P2’.

Economics Concept Introduction

Concept introduction:

Demand: Demand refers to the total value of the goods and services that are demanded at a particular price in the 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 the given period of time.

Subpart (c):

To determine

Demand and supply.

Subpart (c):

Expert Solution

Answer to Problem 4P

Price shifts down and quantity shifts up – c.

Explanation of Solution

When the demand is constant with an increase in the supply curve, it will lead to a decrease in the equilibrium price and an increase in the equilibrium quantity. This is shown below in Figure -3:

Microeconomics: Principles, Problems, & Policies (McGraw-Hill Series in Economics), Chapter 3, Problem 4P , additional homework tip 3

Figure -3

In Figure -3, the horizontal axis measures the quantity supplied and the vertical axis measures the price of the balls. ‘DD’ represents the demand and ‘SS’ represents the supply curve and the supply curve shifts to the right from SS to SS1. Increase in supply will lead to a decrease in the equilibrium price from ‘P1 to P2’ and an increase in the equilibrium quantity from ‘Q1 to Q2’.

Economics Concept Introduction

Concept introduction:

Demand: Demand refers to the total value of the goods and services that are demanded at a particular price in the 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 the given period of time.

Subpart (d):

To determine

Demand and supply.

Subpart (d):

Expert Solution

Answer to Problem 4P

Price will indeterminate and quantity shifts up – d.

Explanation of Solution

When both the demand and supply increases, it will lead to an increase in the equilibrium quantity and the change in price is indeterminate. This is because an increase in the supply puts a downward pressure on the equilibrium price. This is shown below in Figure – 4:

Microeconomics: Principles, Problems, & Policies (McGraw-Hill Series in Economics), Chapter 3, Problem 4P , additional homework tip 4

Figure -4

In Figure -4, the horizontal axis measures the quantity supplied and the vertical axis measures the price of the balls. ‘DD’ represents the demand curve and ‘SS’ represents the supply curve. Due to the increase in supply and demand, the supply curve shifts to the right from SS to SS1 and the demand curve shifts from DD to DD1. An increase in the supply leads to an increase in the equilibrium price from ‘P1 to P2’ and the equilibrium quantity from ‘Q1 to Q2’.

Economics Concept Introduction

Concept introduction:

Demand: Demand refers to the total value of the goods and services that are demanded at a particular price in the 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 the given period of time.

Subpart (e):

To determine

Demand and supply.

Subpart (e):

Expert Solution

Answer to Problem 4P

Price shifts up and quantity shifts up – e.

Explanation of Solution

If the demand increases with constant supply, it leads to an increase in the equilibrium quantity and equilibrium price. This is shown below in Figure – 5:

Microeconomics: Principles, Problems, & Policies (McGraw-Hill Series in Economics), Chapter 3, Problem 4P , additional homework tip 5

Figure -5

In Figure -5, the horizontal axis measures the quantity supplied and the vertical axis measures the price of the balls. ‘DD’ represents the demand curve and ‘SS’ represents the supply curve. Due to an increase in demand, the demand curve will shift the curve to the right from DD to DD1. An increase in demand will increase the equilibrium price from ‘P1 to P2’ and increases the equilibrium quantity from ‘Q1 to Q2’.

Economics Concept Introduction

Concept introduction:

Demand: Demand refers to the total value of the goods and services that are demanded at a particular price in the 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 the given period of time.

Subpart (f):

To determine

Demand and supply.

Subpart (f):

Expert Solution

Answer to Problem 4P

Price shifts down and quantity indeterminate – f.

Explanation of Solution

If the supply increases with a decrease in demand, it leads to a decrease in the equilibrium price because both the curves put a pressure on the equilibrium price. Thus, an increase in supply increases the equilibrium quantity and a decrease in demand lead to a decrease in the equilibrium quantity. This is shown below in Figure – 6:

Microeconomics: Principles, Problems, & Policies (McGraw-Hill Series in Economics), Chapter 3, Problem 4P , additional homework tip 6

Figure -6

In Figure -6, the horizontal axis measures the quantity supplied and the vertical axis measures the price of the balls. ‘DD’ represents the demand curve and ‘SS’ represents the supply curve. Due to a decrease in demand and an increase in supply, demand curve will shift the curve to the left from DD to DD1. An increase in supply will lead to an increase in the equilibrium quantity from ‘P1 to P2’ and increases the equilibrium quantity from ‘Q1 to Q2’.

Economics Concept Introduction

Concept introduction:

Demand: Demand refers to the total value of the goods and services that are demanded at a particular price in the 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 the given period of time.

Subpart (g):

To determine

Demand and supply.

Subpart (g):

Expert Solution

Answer to Problem 4P

Price shifts up and quantity indeterminate – g.

Explanation of Solution

If the supply decreases with an increase in demand, it will lead to an increase in the equilibrium price because both the curve put a pressure on the equilibrium price. An increase in demand will lead to an increase in the equilibrium quantity. This is shown below in Figure – 7:

Microeconomics: Principles, Problems, & Policies (McGraw-Hill Series in Economics), Chapter 3, Problem 4P , additional homework tip 7

Figure -7

In Figure -7, the horizontal axis measures the quantity supplied and the vertical axis measures the price of the balls. ‘DD’ represents the demand and ‘SS’ represents the supply curve. Due to a decrease in supply and an increase in demand, the supply curve will shift the curve to the left from SS to SS1 and the demand curve shifts the curve to the right, which leads to an increase in the equilibrium price from ‘P1 to P2’ and the equilibrium quantity from ‘Q1 to Q2’.

Economics Concept Introduction

Concept introduction:

Demand: Demand refers to the total value of the goods and services that are demanded at a particular price in the 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 the given period of time.

Subpart (h):

To determine

Demand and supply.

Subpart (h):

Expert Solution

Answer to Problem 4P

Price indeterminate and quantity shifts down – h.

Explanation of Solution

If both the supply and demand decreases, then it lead to a decrease in the equilibrium quantity and the change in equilibrium price is indeterminate. This is because a decrease in supply puts an upward pressure on the equilibrium price. This is shown below in Figure – 8:

Microeconomics: Principles, Problems, & Policies (McGraw-Hill Series in Economics), Chapter 3, Problem 4P , additional homework tip 8

Figure -8

In Figure -8, the horizontal axis measures the quantity supplied and the vertical axis measures the price of the balls. ‘DD’ represents the demand and ‘SS’ represents the supply curve. Due to a decrease in supply and a decrease in demand, the supply curve will shift the curve to the left from SS to SS1 and the demand curve shifts the curve to the left, which lead to an increase in the equilibrium price from ‘P1 to P2’ and a decrease in the equilibrium quantity from ‘Q1 to Q2’.

Economics Concept Introduction

Concept introduction:

Demand: Demand refers to the total value of the goods and services that are demanded at a particular price in the 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 the given period of time.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 5

Chapter 3, Problem 4P

Subpart (a):

To determine

Demand and supply.

Subpart (a):

Expert Solution

Answer to Problem 4P

Price shifts up and quantity shifts down – a.

Explanation of Solution

When the supply decreases with constant demand curve, it will lead to a decrease in the equilibrium quantity and an increase in the equilibrium price. This is shown below in Figure -1:

Microeconomics: Principles, Problems, & Policies (McGraw-Hill Series in Economics), Chapter 3, Problem 4P , additional homework tip 1

Figure -1

In Figure -1, the horizontal axis measures the quantity supplied and the vertical axis measures the price of the balls. ‘DD’ represents the demand and the demand curve shifts from DD to DD1; ‘SS’ represents the supply curve and the supply curve shifts from SS to SS1. Decrease in supply will lead to a decrease in the equilibrium quantity from ‘Q1 to Q2’ and an increase in the equilibrium price from ‘P1 to P2’.

Economics Concept Introduction

Concept introduction:

Demand: Demand refers to the total value of the goods and services that are demanded at a particular price in the 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 the given period of time.

Subpart (b):

To determine

Demand and supply.

Subpart (b):

Expert Solution

Answer to Problem 4P

Price shifts down and quantity shifts down – b.

Explanation of Solution

When the demand decreases with constant supply curve, it will lead to a decrease in the equilibrium quantity and equilibrium price. This is shown below in Figure -2:

Microeconomics: Principles, Problems, & Policies (McGraw-Hill Series in Economics), Chapter 3, Problem 4P , additional homework tip 2

Figure -2

In Figure -2, the horizontal axis measures the quantity supplied and the vertical axis measures the price of the balls. ‘DD’ represents the demand and the demand curve shifts to the left from DD to DD1; ‘SS’ represents the supply curve. Decrease in supply will lead to a decrease in the equilibrium quantity from ‘Q1 to Q2’ and the equilibrium price from ‘P1 to P2’.

Economics Concept Introduction

Concept introduction:

Demand: Demand refers to the total value of the goods and services that are demanded at a particular price in the 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 the given period of time.

Subpart (c):

To determine

Demand and supply.

Subpart (c):

Expert Solution

Answer to Problem 4P

Price shifts down and quantity shifts up – c.

Explanation of Solution

When the demand is constant with an increase in the supply curve, it will lead to a decrease in the equilibrium price and an increase in the equilibrium quantity. This is shown below in Figure -3:

Microeconomics: Principles, Problems, & Policies (McGraw-Hill Series in Economics), Chapter 3, Problem 4P , additional homework tip 3

Figure -3

In Figure -3, the horizontal axis measures the quantity supplied and the vertical axis measures the price of the balls. ‘DD’ represents the demand and ‘SS’ represents the supply curve and the supply curve shifts to the right from SS to SS1. Increase in supply will lead to a decrease in the equilibrium price from ‘P1 to P2’ and an increase in the equilibrium quantity from ‘Q1 to Q2’.

Economics Concept Introduction

Concept introduction:

Demand: Demand refers to the total value of the goods and services that are demanded at a particular price in the 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 the given period of time.

Subpart (d):

To determine

Demand and supply.

Subpart (d):

Expert Solution

Answer to Problem 4P

Price will indeterminate and quantity shifts up – d.

Explanation of Solution

When both the demand and supply increases, it will lead to an increase in the equilibrium quantity and the change in price is indeterminate. This is because an increase in the supply puts a downward pressure on the equilibrium price. This is shown below in Figure – 4:

Microeconomics: Principles, Problems, & Policies (McGraw-Hill Series in Economics), Chapter 3, Problem 4P , additional homework tip 4

Figure -4

In Figure -4, the horizontal axis measures the quantity supplied and the vertical axis measures the price of the balls. ‘DD’ represents the demand curve and ‘SS’ represents the supply curve. Due to the increase in supply and demand, the supply curve shifts to the right from SS to SS1 and the demand curve shifts from DD to DD1. An increase in the supply leads to an increase in the equilibrium price from ‘P1 to P2’ and the equilibrium quantity from ‘Q1 to Q2’.

Economics Concept Introduction

Concept introduction:

Demand: Demand refers to the total value of the goods and services that are demanded at a particular price in the 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 the given period of time.

Subpart (e):

To determine

Demand and supply.

Subpart (e):

Expert Solution

Answer to Problem 4P

Price shifts up and quantity shifts up – e.

Explanation of Solution

If the demand increases with constant supply, it leads to an increase in the equilibrium quantity and equilibrium price. This is shown below in Figure – 5:

Microeconomics: Principles, Problems, & Policies (McGraw-Hill Series in Economics), Chapter 3, Problem 4P , additional homework tip 5

Figure -5

In Figure -5, the horizontal axis measures the quantity supplied and the vertical axis measures the price of the balls. ‘DD’ represents the demand curve and ‘SS’ represents the supply curve. Due to an increase in demand, the demand curve will shift the curve to the right from DD to DD1. An increase in demand will increase the equilibrium price from ‘P1 to P2’ and increases the equilibrium quantity from ‘Q1 to Q2’.

Economics Concept Introduction

Concept introduction:

Demand: Demand refers to the total value of the goods and services that are demanded at a particular price in the 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 the given period of time.

Subpart (f):

To determine

Demand and supply.

Subpart (f):

Expert Solution

Answer to Problem 4P

Price shifts down and quantity indeterminate – f.

Explanation of Solution

If the supply increases with a decrease in demand, it leads to a decrease in the equilibrium price because both the curves put a pressure on the equilibrium price. Thus, an increase in supply increases the equilibrium quantity and a decrease in demand lead to a decrease in the equilibrium quantity. This is shown below in Figure – 6:

Microeconomics: Principles, Problems, & Policies (McGraw-Hill Series in Economics), Chapter 3, Problem 4P , additional homework tip 6

Figure -6

In Figure -6, the horizontal axis measures the quantity supplied and the vertical axis measures the price of the balls. ‘DD’ represents the demand curve and ‘SS’ represents the supply curve. Due to a decrease in demand and an increase in supply, demand curve will shift the curve to the left from DD to DD1. An increase in supply will lead to an increase in the equilibrium quantity from ‘P1 to P2’ and increases the equilibrium quantity from ‘Q1 to Q2’.

Economics Concept Introduction

Concept introduction:

Demand: Demand refers to the total value of the goods and services that are demanded at a particular price in the 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 the given period of time.

Subpart (g):

To determine

Demand and supply.

Subpart (g):

Expert Solution

Answer to Problem 4P

Price shifts up and quantity indeterminate – g.

Explanation of Solution

If the supply decreases with an increase in demand, it will lead to an increase in the equilibrium price because both the curve put a pressure on the equilibrium price. An increase in demand will lead to an increase in the equilibrium quantity. This is shown below in Figure – 7:

Microeconomics: Principles, Problems, & Policies (McGraw-Hill Series in Economics), Chapter 3, Problem 4P , additional homework tip 7

Figure -7

In Figure -7, the horizontal axis measures the quantity supplied and the vertical axis measures the price of the balls. ‘DD’ represents the demand and ‘SS’ represents the supply curve. Due to a decrease in supply and an increase in demand, the supply curve will shift the curve to the left from SS to SS1 and the demand curve shifts the curve to the right, which leads to an increase in the equilibrium price from ‘P1 to P2’ and the equilibrium quantity from ‘Q1 to Q2’.

Economics Concept Introduction

Concept introduction:

Demand: Demand refers to the total value of the goods and services that are demanded at a particular price in the 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 the given period of time.

Subpart (h):

To determine

Demand and supply.

Subpart (h):

Expert Solution

Answer to Problem 4P

Price indeterminate and quantity shifts down – h.

Explanation of Solution

If both the supply and demand decreases, then it lead to a decrease in the equilibrium quantity and the change in equilibrium price is indeterminate. This is because a decrease in supply puts an upward pressure on the equilibrium price. This is shown below in Figure – 8:

Microeconomics: Principles, Problems, & Policies (McGraw-Hill Series in Economics), Chapter 3, Problem 4P , additional homework tip 8

Figure -8

In Figure -8, the horizontal axis measures the quantity supplied and the vertical axis measures the price of the balls. ‘DD’ represents the demand and ‘SS’ represents the supply curve. Due to a decrease in supply and a decrease in demand, the supply curve will shift the curve to the left from SS to SS1 and the demand curve shifts the curve to the left, which lead to an increase in the equilibrium price from ‘P1 to P2’ and a decrease in the equilibrium quantity from ‘Q1 to Q2’.

Economics Concept Introduction

Concept introduction:

Demand: Demand refers to the total value of the goods and services that are demanded at a particular price in the 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 the given period of time.

Answer 6

Chapter 3, Problem 4P

Subpart (a):

To determine

Demand and supply.

Subpart (a):

Expert Solution

Answer to Problem 4P

Price shifts up and quantity shifts down – a.

Explanation of Solution

When the supply decreases with constant demand curve, it will lead to a decrease in the equilibrium quantity and an increase in the equilibrium price. This is shown below in Figure -1:

Microeconomics: Principles, Problems, & Policies (McGraw-Hill Series in Economics), Chapter 3, Problem 4P , additional homework tip 1

Figure -1

In Figure -1, the horizontal axis measures the quantity supplied and the vertical axis measures the price of the balls. ‘DD’ represents the demand and the demand curve shifts from DD to DD1; ‘SS’ represents the supply curve and the supply curve shifts from SS to SS1. Decrease in supply will lead to a decrease in the equilibrium quantity from ‘Q1 to Q2’ and an increase in the equilibrium price from ‘P1 to P2’.

Economics Concept Introduction

Concept introduction:

Demand: Demand refers to the total value of the goods and services that are demanded at a particular price in the 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 the given period of time.

Answer 7

Chapter 3, Problem 4P

Subpart (a):

To determine

Demand and supply.

Answer 8

Subpart (a):

Expert Solution

Answer to Problem 4P

Price shifts up and quantity shifts down – a.

Answer 9

Subpart (a):

Expert Solution

Answer 10

Subpart (a):

Expert Solution

Answer 11

Expert Solution

Answer 12

Explanation of Solution

When the supply decreases with constant demand curve, it will lead to a decrease in the equilibrium quantity and an increase in the equilibrium price. This is shown below in Figure -1:

Microeconomics: Principles, Problems, & Policies (McGraw-Hill Series in Economics), Chapter 3, Problem 4P , additional homework tip 1

Figure -1

In Figure -1, the horizontal axis measures the quantity supplied and the vertical axis measures the price of the balls. ‘DD’ represents the demand and the demand curve shifts from DD to DD1; ‘SS’ represents the supply curve and the supply curve shifts from SS to SS1. Decrease in supply will lead to a decrease in the equilibrium quantity from ‘Q1 to Q2’ and an increase in the equilibrium price from ‘P1 to P2’.

Answer 13

Economics Concept Introduction

Concept introduction:

Demand: Demand refers to the total value of the goods and services that are demanded at a particular price in the 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 the given period of time.

Answer 14

Subpart (b):

To determine

Demand and supply.

Subpart (b):

Expert Solution

Answer to Problem 4P

Price shifts down and quantity shifts down – b.

Explanation of Solution

When the demand decreases with constant supply curve, it will lead to a decrease in the equilibrium quantity and equilibrium price. This is shown below in Figure -2:

Microeconomics: Principles, Problems, & Policies (McGraw-Hill Series in Economics), Chapter 3, Problem 4P , additional homework tip 2

Figure -2

In Figure -2, the horizontal axis measures the quantity supplied and the vertical axis measures the price of the balls. ‘DD’ represents the demand and the demand curve shifts to the left from DD to DD1; ‘SS’ represents the supply curve. Decrease in supply will lead to a decrease in the equilibrium quantity from ‘Q1 to Q2’ and the equilibrium price from ‘P1 to P2’.

Economics Concept Introduction

Concept introduction:

Demand: Demand refers to the total value of the goods and services that are demanded at a particular price in the 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 the given period of time.

Answer 15

Subpart (b):

To determine

Demand and supply.

Answer 16

Subpart (b):

Expert Solution

Answer to Problem 4P

Price shifts down and quantity shifts down – b.

Answer 17

Subpart (b):

Expert Solution

Answer 18

Subpart (b):

Expert Solution

Answer 19

Expert Solution

Answer 20

Explanation of Solution

When the demand decreases with constant supply curve, it will lead to a decrease in the equilibrium quantity and equilibrium price. This is shown below in Figure -2:

Microeconomics: Principles, Problems, & Policies (McGraw-Hill Series in Economics), Chapter 3, Problem 4P , additional homework tip 2

Figure -2

In Figure -2, the horizontal axis measures the quantity supplied and the vertical axis measures the price of the balls. ‘DD’ represents the demand and the demand curve shifts to the left from DD to DD1; ‘SS’ represents the supply curve. Decrease in supply will lead to a decrease in the equilibrium quantity from ‘Q1 to Q2’ and the equilibrium price from ‘P1 to P2’.

Answer 21

Economics Concept Introduction

Concept introduction:

Demand: Demand refers to the total value of the goods and services that are demanded at a particular price in the 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 the given period of time.

Answer 22

Subpart (c):

To determine

Demand and supply.

Subpart (c):

Expert Solution

Answer to Problem 4P

Price shifts down and quantity shifts up – c.

Explanation of Solution

When the demand is constant with an increase in the supply curve, it will lead to a decrease in the equilibrium price and an increase in the equilibrium quantity. This is shown below in Figure -3:

Microeconomics: Principles, Problems, & Policies (McGraw-Hill Series in Economics), Chapter 3, Problem 4P , additional homework tip 3

Figure -3

In Figure -3, the horizontal axis measures the quantity supplied and the vertical axis measures the price of the balls. ‘DD’ represents the demand and ‘SS’ represents the supply curve and the supply curve shifts to the right from SS to SS1. Increase in supply will lead to a decrease in the equilibrium price from ‘P1 to P2’ and an increase in the equilibrium quantity from ‘Q1 to Q2’.

Economics Concept Introduction

Concept introduction:

Demand: Demand refers to the total value of the goods and services that are demanded at a particular price in the 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 the given period of time.

Answer 23

Subpart (c):

To determine

Demand and supply.

Answer 24

Subpart (c):

Expert Solution

Answer to Problem 4P

Price shifts down and quantity shifts up – c.

Answer 25

Subpart (c):

Expert Solution

Answer 26

Subpart (c):

Expert Solution

Answer 27

Expert Solution

Answer 28

Explanation of Solution

When the demand is constant with an increase in the supply curve, it will lead to a decrease in the equilibrium price and an increase in the equilibrium quantity. This is shown below in Figure -3:

Microeconomics: Principles, Problems, & Policies (McGraw-Hill Series in Economics), Chapter 3, Problem 4P , additional homework tip 3

Figure -3

In Figure -3, the horizontal axis measures the quantity supplied and the vertical axis measures the price of the balls. ‘DD’ represents the demand and ‘SS’ represents the supply curve and the supply curve shifts to the right from SS to SS1. Increase in supply will lead to a decrease in the equilibrium price from ‘P1 to P2’ and an increase in the equilibrium quantity from ‘Q1 to Q2’.

Answer 29

Economics Concept Introduction

Concept introduction:

Demand: Demand refers to the total value of the goods and services that are demanded at a particular price in the 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 the given period of time.

Answer 30

Subpart (d):

To determine

Demand and supply.

Subpart (d):

Expert Solution

Answer to Problem 4P

Price will indeterminate and quantity shifts up – d.

Explanation of Solution

When both the demand and supply increases, it will lead to an increase in the equilibrium quantity and the change in price is indeterminate. This is because an increase in the supply puts a downward pressure on the equilibrium price. This is shown below in Figure – 4:

Microeconomics: Principles, Problems, & Policies (McGraw-Hill Series in Economics), Chapter 3, Problem 4P , additional homework tip 4

Figure -4

In Figure -4, the horizontal axis measures the quantity supplied and the vertical axis measures the price of the balls. ‘DD’ represents the demand curve and ‘SS’ represents the supply curve. Due to the increase in supply and demand, the supply curve shifts to the right from SS to SS1 and the demand curve shifts from DD to DD1. An increase in the supply leads to an increase in the equilibrium price from ‘P1 to P2’ and the equilibrium quantity from ‘Q1 to Q2’.

Economics Concept Introduction

Concept introduction:

Demand: Demand refers to the total value of the goods and services that are demanded at a particular price in the 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 the given period of time.

Answer 31

Subpart (d):

To determine

Demand and supply.

Answer 32

Subpart (d):

Expert Solution

Answer to Problem 4P

Price will indeterminate and quantity shifts up – d.

Answer 33

Subpart (d):

Expert Solution

Answer 34

Subpart (d):

Expert Solution

Answer 35

Expert Solution

Answer 36

Explanation of Solution

When both the demand and supply increases, it will lead to an increase in the equilibrium quantity and the change in price is indeterminate. This is because an increase in the supply puts a downward pressure on the equilibrium price. This is shown below in Figure – 4:

Microeconomics: Principles, Problems, & Policies (McGraw-Hill Series in Economics), Chapter 3, Problem 4P , additional homework tip 4

Figure -4

In Figure -4, the horizontal axis measures the quantity supplied and the vertical axis measures the price of the balls. ‘DD’ represents the demand curve and ‘SS’ represents the supply curve. Due to the increase in supply and demand, the supply curve shifts to the right from SS to SS1 and the demand curve shifts from DD to DD1. An increase in the supply leads to an increase in the equilibrium price from ‘P1 to P2’ and the equilibrium quantity from ‘Q1 to Q2’.

Answer 37

Economics Concept Introduction

Concept introduction:

Demand: Demand refers to the total value of the goods and services that are demanded at a particular price in the 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 the given period of time.

Answer 38

Subpart (e):

To determine

Demand and supply.

Subpart (e):

Expert Solution

Answer to Problem 4P

Price shifts up and quantity shifts up – e.

Explanation of Solution

If the demand increases with constant supply, it leads to an increase in the equilibrium quantity and equilibrium price. This is shown below in Figure – 5:

Microeconomics: Principles, Problems, & Policies (McGraw-Hill Series in Economics), Chapter 3, Problem 4P , additional homework tip 5

Figure -5

In Figure -5, the horizontal axis measures the quantity supplied and the vertical axis measures the price of the balls. ‘DD’ represents the demand curve and ‘SS’ represents the supply curve. Due to an increase in demand, the demand curve will shift the curve to the right from DD to DD1. An increase in demand will increase the equilibrium price from ‘P1 to P2’ and increases the equilibrium quantity from ‘Q1 to Q2’.

Economics Concept Introduction

Concept introduction:

Demand: Demand refers to the total value of the goods and services that are demanded at a particular price in the 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 the given period of time.

Answer 39

Subpart (e):

To determine

Demand and supply.

Answer 40

Subpart (e):

Expert Solution

Answer to Problem 4P

Price shifts up and quantity shifts up – e.

Answer 41

Subpart (e):

Expert Solution

Answer 42

Subpart (e):

Expert Solution

Answer 43

Expert Solution

Answer 44

Explanation of Solution

If the demand increases with constant supply, it leads to an increase in the equilibrium quantity and equilibrium price. This is shown below in Figure – 5:

Microeconomics: Principles, Problems, & Policies (McGraw-Hill Series in Economics), Chapter 3, Problem 4P , additional homework tip 5

Figure -5

In Figure -5, the horizontal axis measures the quantity supplied and the vertical axis measures the price of the balls. ‘DD’ represents the demand curve and ‘SS’ represents the supply curve. Due to an increase in demand, the demand curve will shift the curve to the right from DD to DD1. An increase in demand will increase the equilibrium price from ‘P1 to P2’ and increases the equilibrium quantity from ‘Q1 to Q2’.

Answer 45

Economics Concept Introduction

Concept introduction:

Demand: Demand refers to the total value of the goods and services that are demanded at a particular price in the 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 the given period of time.

Answer 46

Subpart (f):

To determine

Demand and supply.

Subpart (f):

Expert Solution

Answer to Problem 4P

Price shifts down and quantity indeterminate – f.

Explanation of Solution

If the supply increases with a decrease in demand, it leads to a decrease in the equilibrium price because both the curves put a pressure on the equilibrium price. Thus, an increase in supply increases the equilibrium quantity and a decrease in demand lead to a decrease in the equilibrium quantity. This is shown below in Figure – 6:

Microeconomics: Principles, Problems, & Policies (McGraw-Hill Series in Economics), Chapter 3, Problem 4P , additional homework tip 6

Figure -6

In Figure -6, the horizontal axis measures the quantity supplied and the vertical axis measures the price of the balls. ‘DD’ represents the demand curve and ‘SS’ represents the supply curve. Due to a decrease in demand and an increase in supply, demand curve will shift the curve to the left from DD to DD1. An increase in supply will lead to an increase in the equilibrium quantity from ‘P1 to P2’ and increases the equilibrium quantity from ‘Q1 to Q2’.

Economics Concept Introduction

Concept introduction:

Demand: Demand refers to the total value of the goods and services that are demanded at a particular price in the 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 the given period of time.

Answer 47

Subpart (f):

To determine

Demand and supply.

Answer 48

Subpart (f):

Expert Solution

Answer to Problem 4P

Price shifts down and quantity indeterminate – f.

Answer 49

Subpart (f):

Expert Solution

Answer 50

Subpart (f):

Expert Solution

Answer 51

Expert Solution

Answer 52

Explanation of Solution

If the supply increases with a decrease in demand, it leads to a decrease in the equilibrium price because both the curves put a pressure on the equilibrium price. Thus, an increase in supply increases the equilibrium quantity and a decrease in demand lead to a decrease in the equilibrium quantity. This is shown below in Figure – 6:

Microeconomics: Principles, Problems, & Policies (McGraw-Hill Series in Economics), Chapter 3, Problem 4P , additional homework tip 6

Figure -6

In Figure -6, the horizontal axis measures the quantity supplied and the vertical axis measures the price of the balls. ‘DD’ represents the demand curve and ‘SS’ represents the supply curve. Due to a decrease in demand and an increase in supply, demand curve will shift the curve to the left from DD to DD1. An increase in supply will lead to an increase in the equilibrium quantity from ‘P1 to P2’ and increases the equilibrium quantity from ‘Q1 to Q2’.

Answer 53

Economics Concept Introduction

Concept introduction:

Demand: Demand refers to the total value of the goods and services that are demanded at a particular price in the 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 the given period of time.

Answer 54

Subpart (g):

To determine

Demand and supply.

Subpart (g):

Expert Solution

Answer to Problem 4P

Price shifts up and quantity indeterminate – g.

Explanation of Solution

If the supply decreases with an increase in demand, it will lead to an increase in the equilibrium price because both the curve put a pressure on the equilibrium price. An increase in demand will lead to an increase in the equilibrium quantity. This is shown below in Figure – 7:

Microeconomics: Principles, Problems, & Policies (McGraw-Hill Series in Economics), Chapter 3, Problem 4P , additional homework tip 7

Figure -7

In Figure -7, the horizontal axis measures the quantity supplied and the vertical axis measures the price of the balls. ‘DD’ represents the demand and ‘SS’ represents the supply curve. Due to a decrease in supply and an increase in demand, the supply curve will shift the curve to the left from SS to SS1 and the demand curve shifts the curve to the right, which leads to an increase in the equilibrium price from ‘P1 to P2’ and the equilibrium quantity from ‘Q1 to Q2’.

Economics Concept Introduction

Concept introduction:

Demand: Demand refers to the total value of the goods and services that are demanded at a particular price in the 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 the given period of time.

Answer 55

Subpart (g):

To determine

Demand and supply.

Answer 56

Subpart (g):

Expert Solution

Answer to Problem 4P

Price shifts up and quantity indeterminate – g.

Answer 57

Subpart (g):

Expert Solution

Answer 58

Subpart (g):

Expert Solution

Answer 59

Expert Solution

Answer 60

Explanation of Solution

If the supply decreases with an increase in demand, it will lead to an increase in the equilibrium price because both the curve put a pressure on the equilibrium price. An increase in demand will lead to an increase in the equilibrium quantity. This is shown below in Figure – 7:

Microeconomics: Principles, Problems, & Policies (McGraw-Hill Series in Economics), Chapter 3, Problem 4P , additional homework tip 7

Figure -7

In Figure -7, the horizontal axis measures the quantity supplied and the vertical axis measures the price of the balls. ‘DD’ represents the demand and ‘SS’ represents the supply curve. Due to a decrease in supply and an increase in demand, the supply curve will shift the curve to the left from SS to SS1 and the demand curve shifts the curve to the right, which leads to an increase in the equilibrium price from ‘P1 to P2’ and the equilibrium quantity from ‘Q1 to Q2’.

Answer 61

Economics Concept Introduction

Concept introduction:

Demand: Demand refers to the total value of the goods and services that are demanded at a particular price in the 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 the given period of time.

Answer 62

Subpart (h):

To determine

Demand and supply.

Subpart (h):

Expert Solution

Answer to Problem 4P

Price indeterminate and quantity shifts down – h.

Explanation of Solution

If both the supply and demand decreases, then it lead to a decrease in the equilibrium quantity and the change in equilibrium price is indeterminate. This is because a decrease in supply puts an upward pressure on the equilibrium price. This is shown below in Figure – 8:

Microeconomics: Principles, Problems, & Policies (McGraw-Hill Series in Economics), Chapter 3, Problem 4P , additional homework tip 8

Figure -8

In Figure -8, the horizontal axis measures the quantity supplied and the vertical axis measures the price of the balls. ‘DD’ represents the demand and ‘SS’ represents the supply curve. Due to a decrease in supply and a decrease in demand, the supply curve will shift the curve to the left from SS to SS1 and the demand curve shifts the curve to the left, which lead to an increase in the equilibrium price from ‘P1 to P2’ and a decrease in the equilibrium quantity from ‘Q1 to Q2’.

Economics Concept Introduction

Concept introduction:

Demand: Demand refers to the total value of the goods and services that are demanded at a particular price in the 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 the given period of time.

Answer 63

Subpart (h):

To determine

Demand and supply.

Answer 64

Subpart (h):

Expert Solution

Answer to Problem 4P

Price indeterminate and quantity shifts down – h.

Answer 65

Subpart (h):

Expert Solution

Answer 66

Subpart (h):

Expert Solution

Answer 67

Expert Solution

Answer 68

Explanation of Solution

If both the supply and demand decreases, then it lead to a decrease in the equilibrium quantity and the change in equilibrium price is indeterminate. This is because a decrease in supply puts an upward pressure on the equilibrium price. This is shown below in Figure – 8:

Microeconomics: Principles, Problems, & Policies (McGraw-Hill Series in Economics), Chapter 3, Problem 4P , additional homework tip 8

Figure -8

In Figure -8, the horizontal axis measures the quantity supplied and the vertical axis measures the price of the balls. ‘DD’ represents the demand and ‘SS’ represents the supply curve. Due to a decrease in supply and a decrease in demand, the supply curve will shift the curve to the left from SS to SS1 and the demand curve shifts the curve to the left, which lead to an increase in the equilibrium price from ‘P1 to P2’ and a decrease in the equilibrium quantity from ‘Q1 to Q2’.

Answer 69

Economics Concept Introduction

Concept introduction:

Demand: Demand refers to the total value of the goods and services that are demanded at a particular price in the 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 the given period of time.