Principles of Microeconomics, California Edition
2nd Edition
ISBN: 9780393622102
Author: Dirk Mateer, Lee Coppock
Publisher: NORTON
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Chapter 3, Problem 7SP
To determine
Demand and supply curves for Years 1 and 2.
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Chapter 3 Solutions
Principles of Microeconomics, California Edition
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- Find the equilibrium price, quantity, and revenue in a market characterized by the following information: Qd = 5000 - 20P [demand curve] Qs = 30P [supply curve] Predict the direction of change (rise or fall) in the equilibrium price and quantity in the market for gasoline this week if drivers come to expect that the price of gasoline will fall next week. Use a demand-supply graph to justify your prediction.arrow_forwardIf tickets to a Great Lakes Loons (a minor league baseball team in Midland, MI) game are considered an inferior good and the incomes in of citizens of Michigan increases, demand for Great Lakes Loons tickets will increase. supply of Great Lakes Loons tickets will decrease. supply of Great Lakes Loons tickets will increase. demand for Great Lakes Loons tickets will decrease..arrow_forwardWhen firms in a market expect the price of their products to rise, the supply curve of their goods , causing the equilibrium price to decreases; rise decreases; fall increases; fall increases; rise increases; rise and the equilibrium quantity to fallarrow_forward
- Which of the following does NOT increase the supply of personal computers, that is, does NOT shift the supply curve of personal computers? A) a change in the expected future price of a personal computer B) an advance in the technology used to produce personal computers C) a fall in the cost of the components used to assemble personal computers D) an increase in the number of firms producing personal computer E) a rise the price of a personal computerarrow_forwardConsider a market whose demand and supply curves are described by the following equations: P = 40 - 2QD and P = 20 + 0.5QS. Please find the equilibrium price (P), equilibrium quantity (Q) and the price elasticity of supply(PES) at the equilibrium price.arrow_forwardIf the price of rubber falls, how will that affect the demand for rubber tires? a) demand will not shift b) demand will shift to the left c)demand will shift to the right d) Demand shifts depends on the if tires are inferior or normalarrow_forward
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