Connect Access Card for Microeconomics
21st Edition
ISBN: 9781259915734
Author: Campbell McConnell, Stanley Brue, Sean Flynn
Publisher: McGraw-Hill Education
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Question
Chapter 3, Problem
Subpart (a):
To determine
Equilibrium price and quantity.
Table – 1 shows the value of quantity demanded and quantity supplied by the apartment:
Table -1
| Monthly rent | Apartment demanded | Apartment supplied |
| 2,500 | 10,000 | 15,000 |
| 2,000 | 12,500 | 12,500 |
| 1,500 | 15,000 | 10,000 |
| 1,000 | 17,500 | 7,500 |
| 500 | 20,000 | 5,000 |
Subpart (b):
To determine
Equilibrium price and quantity.
Table – 1 shows the value of quantity demanded and quantity supplied by the apartment:
Table -1
| Monthly rent | Apartment demanded | Apartment supplied |
| 2,500 | 10,000 | 15,000 |
| 2,000 | 12,500 | 12,500 |
| 1,500 | 15,000 | 10,000 |
| 1,000 | 17,500 | 7,500 |
| 500 | 20,000 | 5,000 |
Subparts (c):
To determine
Equilibrium price and quantity.
Table – 1 shows the value of quantity demanded and quantity supplied by the apartment:
Table -1
| Monthly rent | Apartment demanded | Apartment supplied |
| 2,500 | 10,000 | 15,000 |
| 2,000 | 12,500 | 12,500 |
| 1,500 | 15,000 | 10,000 |
| 1,000 | 17,500 | 7,500 |
| 500 | 20,000 | 5,000 |
Subpart (d):
To determine
Equilibrium price and quantity.
Table – 1 shows the value of quantity demanded and quantity supplied by the apartment:
Table -1
| Monthly rent | Apartment demanded | Apartment supplied |
| 2,500 | 10,000 | 15,000 |
| 2,000 | 12,500 | 12,500 |
| 1,500 | 15,000 | 10,000 |
| 1,000 | 17,500 | 7,500 |
| 500 | 20,000 | 5,000 |
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3. Consider the case of everyone being wealthier in the future, such as from a positive
productivity shock (computers, internet, robotics, AI).
A. Begin from the baseline preferences and endowments.
Give both people an endowment of 1000 pounds for the first period and 1100 pounds for the
second. AI increases the supply of second period goods by 10%.
Note that there is now a total of 2000 pounds in the first period and 2200 pounds in the
second.
Determine the equilibrium interest rate.
r =
%
B. Begin from the baseline preferences and endowments.
Give both people an endowment of 1100 pounds for the first and 1100 pounds for the second
periods. AI increases the supply in all periods by 10%.
Note that there are now 2200 pounds in the first period and 2200 pounds in the second.
Determine the equilibrium interest rate.
r =
%
C. Explain how productivity and the real rate are connected.
Write at least five sentences.
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Chapter 3 Solutions
Connect Access Card for Microeconomics
Ch. 3.6 - Prob. 1QQCh. 3.6 - Prob. 2QQCh. 3.6 - Prob. 3QQCh. 3.6 - Prob. 4QQCh. 3.A - Prob. 1ADQCh. 3.A - Prob. 2ADQCh. 3.A - Prob. 3ADQCh. 3.A - Prob. 4ADQCh. 3.A - Prob. 5ADQCh. 3.A - Prob. 6ADQ
Ch. 3.A - Prob. 7ADQCh. 3.A - Prob. 1ARQCh. 3.A - Prob. 2ARQCh. 3.A - Prob. 3ARQCh. 3.A - Prob. 4ARQCh. 3.A - Prob. 5ARQCh. 3.A - Prob. 6ARQCh. 3.A - Prob. 1APCh. 3.A - Prob. 2APCh. 3.A - Prob. 3APCh. 3 - Prob. 1DQCh. 3 - Prob. 2DQCh. 3 - Prob. 3DQCh. 3 - Prob. 4DQCh. 3 - Prob. 5DQCh. 3 - Prob. 6DQCh. 3 - Prob. 7DQCh. 3 - Prob. 8DQCh. 3 - Prob. 1RQCh. 3 - Prob. 2RQCh. 3 - Prob. 3RQCh. 3 - Prob. 4RQCh. 3 - Prob. 5RQCh. 3 - Prob. 6RQCh. 3 - Prob. 7RQCh. 3 - Prob. 8RQCh. 3 - Prob. 9RQCh. 3 - Prob. 1PCh. 3 - Prob. 2PCh. 3 - Prob. 3PCh. 3 - Prob. 4PCh. 3 - Prob. 5PCh. 3 - Prob. 6PCh. 3 - Prob. 7P
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