To answer: What is a competitive market and how it is described by the supply and demand model? Concept Introduction: Competitive market : The competitive market is a market where there is large number of buyers and sellers in the, the sellers are profit motive and the buyers want to maximise their satisfaction. In a competitive market no single produce can influence the price of the commodities. If one producer increases the price of his good no one will follow him and the producer may incur losses. In a perfectly competitive market the firms will be selling homogenous product Explanation: The competitive market is a place where there are large number of buyers and sellers in the economy. And they are selling homogenous products in the economy. The sellers are profit oriented and the buyers want maximum satisfaction from the products. There is rivalry in the competitive market the actions of one firm affects the decision of another firm so it leads to rivalry in the markets. Another feature of competitive market is excludability. The firms may exclude the consumers from enjoying their goods or service for an example the movies are only shown to the persons who buy movie tickets, if there is no excludability the consumers become free riders. Another feature of competitive market is the available information is fully reflected in the market for example there is report that hamburger consumption creates more health problems to the people, so due to this report there will be decreased demand for hamburgers in the market. So the available information is fully reflected in the market. The very important feature of competitive market is there is no barriers to entry that means firms can enter and leave the market at any time, there is complete freedom of firms to enter or leave the market. The above graph shows the supply and demand model in a competitive market, the demand curve will be downward sloping one indicates the negative relationship between the price and quantity demanded, if the prices are high the people will buy less of the product. The supply curve will be upward sloping one indicates the direct relationship between demand and supply. If the prices are high the producers will supply more of their products in the market. The intersection between the demand and supply curve is the equilibrium where the demand and supply are equal. There will be a surplus in the economy when the supply of goods and services exceeds the demand for goods and services and there will be also shortages in the economy when there is demand for goods and services exceeds the supply of goods and services. The shifts in the demand curve is shown by the above graph, a right ward shift from D to D1 shows increase in the quantity demanded of the commodity and the left ward shift from D to D2 shows the decrease in the quantity demanded. Changes in the price of commodity can only create movement along the demand curve and it cannot shift the demand curve, changes in income, tastes and preferences, fashion, changes in the prices of other goods can shift the demand curve. The shifts in the supply curve is shown by the above graph a right ward shift from S to S1 shows the increase in the quantity supplied and a leftward shift from S to S2 shows the decrease in the quantity supplied. Changes in input prices, expectations, technology can shift the supply curve; price only can result in a movement in the supply curve.

Question

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Answer 1

Question

Chapter 3, Problem aWYWL

To determine

To answer:

What is a competitive market and how it is described by the supply and demand model?

Concept Introduction:

Competitive market: The competitive market is a market where there is large number of buyers and sellers in the, the sellers are profit motive and the buyers want to maximise their satisfaction. In a competitive market no single produce can influence the price of the commodities. If one producer increases the price of his good no one will follow him and the producer may incur losses. In a perfectly competitive market the firms will be selling homogenous product

Explanation:

The competitive market is a place where there are large number of buyers and sellers in the economy. And they are selling homogenous products in the economy. The sellers are profit oriented and the buyers want maximum satisfaction from the products. There is rivalry in the competitive market the actions of one firm affects the decision of another firm so it leads to rivalry in the markets.

Another feature of competitive market is excludability. The firms may exclude the consumers from enjoying their goods or service for an example the movies are only shown to the persons who buy movie tickets, if there is no excludability the consumers become free riders. Another feature of competitive market is the available information is fully reflected in the market for example there is report that hamburger consumption creates more health problems to the people, so due to this report there will be decreased demand for hamburgers in the market. So the available information is fully reflected in the market. The very important feature of competitive market is there is no barriers to entry that means firms can enter and leave the market at any time, there is complete freedom of firms to enter or leave the market.

The above graph shows the supply and demand model in a competitive market, the demand curve will be downward sloping one indicates the negative relationship between the price and quantity demanded, if the prices are high the people will buy less of the product. The supply curve will be upward sloping one indicates the direct relationship between demand and supply. If the prices are high the producers will supply more of their products in the market. The intersection between the demand and supply curve is the equilibrium where the demand and supply are equal. There will be a surplus in the economy when the supply of goods and services exceeds the demand for goods and services and there will be also shortages in the economy when there is demand for goods and services exceeds the supply of goods and services.

The shifts in the demand curve is shown by the above graph, a right ward shift from D to D1 shows increase in the quantity demanded of the commodity and the left ward shift from D to D2 shows the decrease in the quantity demanded. Changes in the price of commodity can only create movement along the demand curve and it cannot shift the demand curve, changes in income, tastes and preferences, fashion, changes in the prices of other goods can shift the demand curve.

The shifts in the supply curve is shown by the above graph a right ward shift from S to S1 shows the increase in the quantity supplied and a leftward shift from S to S2 shows the decrease in the quantity supplied. Changes in input prices, expectations, technology can shift the supply curve; price only can result in a movement in the supply curve.

Expert Solution & Answer

Explanation of Solution

The competitive market is a place where there are large number of buyers and sellers in the economy. And they are selling homogenous products in the economy. The sellers are profit oriented and the buyers want maximum satisfaction from the products. There is rivalry in the competitive market the actions of one firm affects the decision of another firm so it leads to rivalry in the markets.

Another feature of competitive market is excludability. The firms may exclude the consumers from enjoying their goods or service for an example the movies are only shown to the persons who buy movie tickets, if there is no excludability the consumers become free riders. Another feature of competitive market is the available information is fully reflected in the market for example there is report that hamburger consumption creates more health problems to the people, so due to this report there will be decreased demand for hamburgers in the market. So the available information is fully reflected in the market. The very important feature of competitive market is there is no barriers to entry that means firms can enter and leave the market at any time, there is complete freedom of firms to enter or leave the market.

EBK MICROECONOMICS, Chapter 3, Problem aWYWL , additional homework tip 4

The above graph shows the supply and demand model in a competitive market, the demand curve will be downward sloping one indicates the negative relationship between the price and quantity demanded, if the prices are high the people will buy less of the product. The supply curve will be upward sloping one indicates the direct relationship between demand and supply. If the prices are high the producers will supply more of their products in the market. The intersection between the demand and supply curve is the equilibrium where the demand and supply are equal. There will be a surplus in the economy when the supply of goods and services exceeds the demand for goods and services and there will be also shortages in the economy when there is demand for goods and services exceeds the supply of goods and services.

EBK MICROECONOMICS, Chapter 3, Problem aWYWL , additional homework tip 5

The shifts in the demand curve is shown by the above graph, a right ward shift from D to D1 shows increase in the quantity demanded of the commodity and the left ward shift from D to D2 shows the decrease in the quantity demanded. Changes in the price of commodity can only create movement along the demand curve and it cannot shift the demand curve, changes in income, tastes and preferences, fashion, changes in the prices of other goods can shift the demand curve.

EBK MICROECONOMICS, Chapter 3, Problem aWYWL , additional homework tip 6

The shifts in the supply curve is shown by the above graph a right ward shift from S to S1 shows the increase in the quantity supplied and a leftward shift from S to S2 shows the decrease in the quantity supplied. Changes in input prices, expectations, technology can shift the supply curve; price only can result in a movement in the supply curve.

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Students have asked these similar questions

Sue is a sole proprietor of her own sewing business. Revenues are $150,000 per year and raw material (cloth, thread) costs are $130,000 per year. Sue pays herself a salary of $60,000 per year but gave up a job with a salary of $80,000 to run the business. ○ A. Her accounting profits are $0. Her economic profits are - $60,000. ○ B. Her accounting profits are $0. Her economic profits are - $40,000. ○ C. Her accounting profits are - $40,000. Her economic profits are - $60,000. ○ D. Her accounting profits are - $60,000. Her economic profits are -$40,000.

Select a number that describes the type of firm organization indicated. Descriptions of Firm Organizations: 1. has one owner-manager who is personally responsible for all aspects of the business, including its debts 2. one type of partner takes part in managing the firm and is personally liable for the firm's actions and debts, and the other type of partner takes no part in the management of the firm and risks only the money that they have invested 3. owners are not personally responsible for anything that is done in the name of the firm 4. owned by the government but is usually under the direction of a more or less independent, state-appointed board 5. established with the explicit objective of providing goods or services but only in a manner that just covers its costs 6. has two or more joint owners, each of whom is personally responsible for all of the partnership's debts Type of Firm Organization a. limited partnership b. single proprietorship c. corporation Correct Number

The table below provides the total revenues and costs for a small landscaping company in a recent year. Total Revenues ($) 250,000 Total Costs ($) - wages and salaries 100,000 -risk-free return of 2% on owner's capital of $25,000 500 -interest on bank loan 1,000 - cost of supplies 27,000 - depreciation of capital equipment 8,000 - additional wages the owner could have earned in next best alternative 30,000 -risk premium of 4% on owner's capital of $25,000 1,000 The economic profits for this firm are ○ A. $83,000. B. $82,500. OC. $114,000. OD. $83,500. ○ E. $112,500.

Answer 2

Question

Chapter 3, Problem aWYWL

To determine

To answer:

What is a competitive market and how it is described by the supply and demand model?

Concept Introduction:

Competitive market: The competitive market is a market where there is large number of buyers and sellers in the, the sellers are profit motive and the buyers want to maximise their satisfaction. In a competitive market no single produce can influence the price of the commodities. If one producer increases the price of his good no one will follow him and the producer may incur losses. In a perfectly competitive market the firms will be selling homogenous product

Explanation:

The competitive market is a place where there are large number of buyers and sellers in the economy. And they are selling homogenous products in the economy. The sellers are profit oriented and the buyers want maximum satisfaction from the products. There is rivalry in the competitive market the actions of one firm affects the decision of another firm so it leads to rivalry in the markets.

Another feature of competitive market is excludability. The firms may exclude the consumers from enjoying their goods or service for an example the movies are only shown to the persons who buy movie tickets, if there is no excludability the consumers become free riders. Another feature of competitive market is the available information is fully reflected in the market for example there is report that hamburger consumption creates more health problems to the people, so due to this report there will be decreased demand for hamburgers in the market. So the available information is fully reflected in the market. The very important feature of competitive market is there is no barriers to entry that means firms can enter and leave the market at any time, there is complete freedom of firms to enter or leave the market.

The above graph shows the supply and demand model in a competitive market, the demand curve will be downward sloping one indicates the negative relationship between the price and quantity demanded, if the prices are high the people will buy less of the product. The supply curve will be upward sloping one indicates the direct relationship between demand and supply. If the prices are high the producers will supply more of their products in the market. The intersection between the demand and supply curve is the equilibrium where the demand and supply are equal. There will be a surplus in the economy when the supply of goods and services exceeds the demand for goods and services and there will be also shortages in the economy when there is demand for goods and services exceeds the supply of goods and services.

The shifts in the demand curve is shown by the above graph, a right ward shift from D to D1 shows increase in the quantity demanded of the commodity and the left ward shift from D to D2 shows the decrease in the quantity demanded. Changes in the price of commodity can only create movement along the demand curve and it cannot shift the demand curve, changes in income, tastes and preferences, fashion, changes in the prices of other goods can shift the demand curve.

The shifts in the supply curve is shown by the above graph a right ward shift from S to S1 shows the increase in the quantity supplied and a leftward shift from S to S2 shows the decrease in the quantity supplied. Changes in input prices, expectations, technology can shift the supply curve; price only can result in a movement in the supply curve.

Expert Solution & Answer

Explanation of Solution

The competitive market is a place where there are large number of buyers and sellers in the economy. And they are selling homogenous products in the economy. The sellers are profit oriented and the buyers want maximum satisfaction from the products. There is rivalry in the competitive market the actions of one firm affects the decision of another firm so it leads to rivalry in the markets.

Another feature of competitive market is excludability. The firms may exclude the consumers from enjoying their goods or service for an example the movies are only shown to the persons who buy movie tickets, if there is no excludability the consumers become free riders. Another feature of competitive market is the available information is fully reflected in the market for example there is report that hamburger consumption creates more health problems to the people, so due to this report there will be decreased demand for hamburgers in the market. So the available information is fully reflected in the market. The very important feature of competitive market is there is no barriers to entry that means firms can enter and leave the market at any time, there is complete freedom of firms to enter or leave the market.

EBK MICROECONOMICS, Chapter 3, Problem aWYWL , additional homework tip 4

The above graph shows the supply and demand model in a competitive market, the demand curve will be downward sloping one indicates the negative relationship between the price and quantity demanded, if the prices are high the people will buy less of the product. The supply curve will be upward sloping one indicates the direct relationship between demand and supply. If the prices are high the producers will supply more of their products in the market. The intersection between the demand and supply curve is the equilibrium where the demand and supply are equal. There will be a surplus in the economy when the supply of goods and services exceeds the demand for goods and services and there will be also shortages in the economy when there is demand for goods and services exceeds the supply of goods and services.

EBK MICROECONOMICS, Chapter 3, Problem aWYWL , additional homework tip 5

The shifts in the demand curve is shown by the above graph, a right ward shift from D to D1 shows increase in the quantity demanded of the commodity and the left ward shift from D to D2 shows the decrease in the quantity demanded. Changes in the price of commodity can only create movement along the demand curve and it cannot shift the demand curve, changes in income, tastes and preferences, fashion, changes in the prices of other goods can shift the demand curve.

EBK MICROECONOMICS, Chapter 3, Problem aWYWL , additional homework tip 6

The shifts in the supply curve is shown by the above graph a right ward shift from S to S1 shows the increase in the quantity supplied and a leftward shift from S to S2 shows the decrease in the quantity supplied. Changes in input prices, expectations, technology can shift the supply curve; price only can result in a movement in the supply curve.

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

Answer 3

Question

Chapter 3, Problem aWYWL

To determine

To answer:

What is a competitive market and how it is described by the supply and demand model?

Concept Introduction:

Competitive market: The competitive market is a market where there is large number of buyers and sellers in the, the sellers are profit motive and the buyers want to maximise their satisfaction. In a competitive market no single produce can influence the price of the commodities. If one producer increases the price of his good no one will follow him and the producer may incur losses. In a perfectly competitive market the firms will be selling homogenous product

Explanation:

The competitive market is a place where there are large number of buyers and sellers in the economy. And they are selling homogenous products in the economy. The sellers are profit oriented and the buyers want maximum satisfaction from the products. There is rivalry in the competitive market the actions of one firm affects the decision of another firm so it leads to rivalry in the markets.

Another feature of competitive market is excludability. The firms may exclude the consumers from enjoying their goods or service for an example the movies are only shown to the persons who buy movie tickets, if there is no excludability the consumers become free riders. Another feature of competitive market is the available information is fully reflected in the market for example there is report that hamburger consumption creates more health problems to the people, so due to this report there will be decreased demand for hamburgers in the market. So the available information is fully reflected in the market. The very important feature of competitive market is there is no barriers to entry that means firms can enter and leave the market at any time, there is complete freedom of firms to enter or leave the market.

The above graph shows the supply and demand model in a competitive market, the demand curve will be downward sloping one indicates the negative relationship between the price and quantity demanded, if the prices are high the people will buy less of the product. The supply curve will be upward sloping one indicates the direct relationship between demand and supply. If the prices are high the producers will supply more of their products in the market. The intersection between the demand and supply curve is the equilibrium where the demand and supply are equal. There will be a surplus in the economy when the supply of goods and services exceeds the demand for goods and services and there will be also shortages in the economy when there is demand for goods and services exceeds the supply of goods and services.

The shifts in the demand curve is shown by the above graph, a right ward shift from D to D1 shows increase in the quantity demanded of the commodity and the left ward shift from D to D2 shows the decrease in the quantity demanded. Changes in the price of commodity can only create movement along the demand curve and it cannot shift the demand curve, changes in income, tastes and preferences, fashion, changes in the prices of other goods can shift the demand curve.

The shifts in the supply curve is shown by the above graph a right ward shift from S to S1 shows the increase in the quantity supplied and a leftward shift from S to S2 shows the decrease in the quantity supplied. Changes in input prices, expectations, technology can shift the supply curve; price only can result in a movement in the supply curve.

Expert Solution & Answer

Explanation of Solution

The competitive market is a place where there are large number of buyers and sellers in the economy. And they are selling homogenous products in the economy. The sellers are profit oriented and the buyers want maximum satisfaction from the products. There is rivalry in the competitive market the actions of one firm affects the decision of another firm so it leads to rivalry in the markets.

Another feature of competitive market is excludability. The firms may exclude the consumers from enjoying their goods or service for an example the movies are only shown to the persons who buy movie tickets, if there is no excludability the consumers become free riders. Another feature of competitive market is the available information is fully reflected in the market for example there is report that hamburger consumption creates more health problems to the people, so due to this report there will be decreased demand for hamburgers in the market. So the available information is fully reflected in the market. The very important feature of competitive market is there is no barriers to entry that means firms can enter and leave the market at any time, there is complete freedom of firms to enter or leave the market.

EBK MICROECONOMICS, Chapter 3, Problem aWYWL , additional homework tip 4

The above graph shows the supply and demand model in a competitive market, the demand curve will be downward sloping one indicates the negative relationship between the price and quantity demanded, if the prices are high the people will buy less of the product. The supply curve will be upward sloping one indicates the direct relationship between demand and supply. If the prices are high the producers will supply more of their products in the market. The intersection between the demand and supply curve is the equilibrium where the demand and supply are equal. There will be a surplus in the economy when the supply of goods and services exceeds the demand for goods and services and there will be also shortages in the economy when there is demand for goods and services exceeds the supply of goods and services.

EBK MICROECONOMICS, Chapter 3, Problem aWYWL , additional homework tip 5

The shifts in the demand curve is shown by the above graph, a right ward shift from D to D1 shows increase in the quantity demanded of the commodity and the left ward shift from D to D2 shows the decrease in the quantity demanded. Changes in the price of commodity can only create movement along the demand curve and it cannot shift the demand curve, changes in income, tastes and preferences, fashion, changes in the prices of other goods can shift the demand curve.

EBK MICROECONOMICS, Chapter 3, Problem aWYWL , additional homework tip 6

The shifts in the supply curve is shown by the above graph a right ward shift from S to S1 shows the increase in the quantity supplied and a leftward shift from S to S2 shows the decrease in the quantity supplied. Changes in input prices, expectations, technology can shift the supply curve; price only can result in a movement in the supply curve.

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Answer 4

Question

Chapter 3, Problem aWYWL

To determine

To answer:

What is a competitive market and how it is described by the supply and demand model?

Concept Introduction:

Competitive market: The competitive market is a market where there is large number of buyers and sellers in the, the sellers are profit motive and the buyers want to maximise their satisfaction. In a competitive market no single produce can influence the price of the commodities. If one producer increases the price of his good no one will follow him and the producer may incur losses. In a perfectly competitive market the firms will be selling homogenous product

Explanation:

The competitive market is a place where there are large number of buyers and sellers in the economy. And they are selling homogenous products in the economy. The sellers are profit oriented and the buyers want maximum satisfaction from the products. There is rivalry in the competitive market the actions of one firm affects the decision of another firm so it leads to rivalry in the markets.

Another feature of competitive market is excludability. The firms may exclude the consumers from enjoying their goods or service for an example the movies are only shown to the persons who buy movie tickets, if there is no excludability the consumers become free riders. Another feature of competitive market is the available information is fully reflected in the market for example there is report that hamburger consumption creates more health problems to the people, so due to this report there will be decreased demand for hamburgers in the market. So the available information is fully reflected in the market. The very important feature of competitive market is there is no barriers to entry that means firms can enter and leave the market at any time, there is complete freedom of firms to enter or leave the market.

The above graph shows the supply and demand model in a competitive market, the demand curve will be downward sloping one indicates the negative relationship between the price and quantity demanded, if the prices are high the people will buy less of the product. The supply curve will be upward sloping one indicates the direct relationship between demand and supply. If the prices are high the producers will supply more of their products in the market. The intersection between the demand and supply curve is the equilibrium where the demand and supply are equal. There will be a surplus in the economy when the supply of goods and services exceeds the demand for goods and services and there will be also shortages in the economy when there is demand for goods and services exceeds the supply of goods and services.

The shifts in the demand curve is shown by the above graph, a right ward shift from D to D1 shows increase in the quantity demanded of the commodity and the left ward shift from D to D2 shows the decrease in the quantity demanded. Changes in the price of commodity can only create movement along the demand curve and it cannot shift the demand curve, changes in income, tastes and preferences, fashion, changes in the prices of other goods can shift the demand curve.

The shifts in the supply curve is shown by the above graph a right ward shift from S to S1 shows the increase in the quantity supplied and a leftward shift from S to S2 shows the decrease in the quantity supplied. Changes in input prices, expectations, technology can shift the supply curve; price only can result in a movement in the supply curve.

Expert Solution & Answer

Explanation of Solution

The competitive market is a place where there are large number of buyers and sellers in the economy. And they are selling homogenous products in the economy. The sellers are profit oriented and the buyers want maximum satisfaction from the products. There is rivalry in the competitive market the actions of one firm affects the decision of another firm so it leads to rivalry in the markets.

Another feature of competitive market is excludability. The firms may exclude the consumers from enjoying their goods or service for an example the movies are only shown to the persons who buy movie tickets, if there is no excludability the consumers become free riders. Another feature of competitive market is the available information is fully reflected in the market for example there is report that hamburger consumption creates more health problems to the people, so due to this report there will be decreased demand for hamburgers in the market. So the available information is fully reflected in the market. The very important feature of competitive market is there is no barriers to entry that means firms can enter and leave the market at any time, there is complete freedom of firms to enter or leave the market.

EBK MICROECONOMICS, Chapter 3, Problem aWYWL , additional homework tip 4

The above graph shows the supply and demand model in a competitive market, the demand curve will be downward sloping one indicates the negative relationship between the price and quantity demanded, if the prices are high the people will buy less of the product. The supply curve will be upward sloping one indicates the direct relationship between demand and supply. If the prices are high the producers will supply more of their products in the market. The intersection between the demand and supply curve is the equilibrium where the demand and supply are equal. There will be a surplus in the economy when the supply of goods and services exceeds the demand for goods and services and there will be also shortages in the economy when there is demand for goods and services exceeds the supply of goods and services.

EBK MICROECONOMICS, Chapter 3, Problem aWYWL , additional homework tip 5

The shifts in the demand curve is shown by the above graph, a right ward shift from D to D1 shows increase in the quantity demanded of the commodity and the left ward shift from D to D2 shows the decrease in the quantity demanded. Changes in the price of commodity can only create movement along the demand curve and it cannot shift the demand curve, changes in income, tastes and preferences, fashion, changes in the prices of other goods can shift the demand curve.

EBK MICROECONOMICS, Chapter 3, Problem aWYWL , additional homework tip 6

The shifts in the supply curve is shown by the above graph a right ward shift from S to S1 shows the increase in the quantity supplied and a leftward shift from S to S2 shows the decrease in the quantity supplied. Changes in input prices, expectations, technology can shift the supply curve; price only can result in a movement in the supply curve.

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 aWYWL

To determine

To answer:

What is a competitive market and how it is described by the supply and demand model?

Concept Introduction:

Competitive market: The competitive market is a market where there is large number of buyers and sellers in the, the sellers are profit motive and the buyers want to maximise their satisfaction. In a competitive market no single produce can influence the price of the commodities. If one producer increases the price of his good no one will follow him and the producer may incur losses. In a perfectly competitive market the firms will be selling homogenous product

Explanation:

The competitive market is a place where there are large number of buyers and sellers in the economy. And they are selling homogenous products in the economy. The sellers are profit oriented and the buyers want maximum satisfaction from the products. There is rivalry in the competitive market the actions of one firm affects the decision of another firm so it leads to rivalry in the markets.

Another feature of competitive market is excludability. The firms may exclude the consumers from enjoying their goods or service for an example the movies are only shown to the persons who buy movie tickets, if there is no excludability the consumers become free riders. Another feature of competitive market is the available information is fully reflected in the market for example there is report that hamburger consumption creates more health problems to the people, so due to this report there will be decreased demand for hamburgers in the market. So the available information is fully reflected in the market. The very important feature of competitive market is there is no barriers to entry that means firms can enter and leave the market at any time, there is complete freedom of firms to enter or leave the market.

The above graph shows the supply and demand model in a competitive market, the demand curve will be downward sloping one indicates the negative relationship between the price and quantity demanded, if the prices are high the people will buy less of the product. The supply curve will be upward sloping one indicates the direct relationship between demand and supply. If the prices are high the producers will supply more of their products in the market. The intersection between the demand and supply curve is the equilibrium where the demand and supply are equal. There will be a surplus in the economy when the supply of goods and services exceeds the demand for goods and services and there will be also shortages in the economy when there is demand for goods and services exceeds the supply of goods and services.

The shifts in the demand curve is shown by the above graph, a right ward shift from D to D1 shows increase in the quantity demanded of the commodity and the left ward shift from D to D2 shows the decrease in the quantity demanded. Changes in the price of commodity can only create movement along the demand curve and it cannot shift the demand curve, changes in income, tastes and preferences, fashion, changes in the prices of other goods can shift the demand curve.

The shifts in the supply curve is shown by the above graph a right ward shift from S to S1 shows the increase in the quantity supplied and a leftward shift from S to S2 shows the decrease in the quantity supplied. Changes in input prices, expectations, technology can shift the supply curve; price only can result in a movement in the supply curve.

Expert Solution & Answer

Explanation of Solution

The competitive market is a place where there are large number of buyers and sellers in the economy. And they are selling homogenous products in the economy. The sellers are profit oriented and the buyers want maximum satisfaction from the products. There is rivalry in the competitive market the actions of one firm affects the decision of another firm so it leads to rivalry in the markets.

Another feature of competitive market is excludability. The firms may exclude the consumers from enjoying their goods or service for an example the movies are only shown to the persons who buy movie tickets, if there is no excludability the consumers become free riders. Another feature of competitive market is the available information is fully reflected in the market for example there is report that hamburger consumption creates more health problems to the people, so due to this report there will be decreased demand for hamburgers in the market. So the available information is fully reflected in the market. The very important feature of competitive market is there is no barriers to entry that means firms can enter and leave the market at any time, there is complete freedom of firms to enter or leave the market.

EBK MICROECONOMICS, Chapter 3, Problem aWYWL , additional homework tip 4

The above graph shows the supply and demand model in a competitive market, the demand curve will be downward sloping one indicates the negative relationship between the price and quantity demanded, if the prices are high the people will buy less of the product. The supply curve will be upward sloping one indicates the direct relationship between demand and supply. If the prices are high the producers will supply more of their products in the market. The intersection between the demand and supply curve is the equilibrium where the demand and supply are equal. There will be a surplus in the economy when the supply of goods and services exceeds the demand for goods and services and there will be also shortages in the economy when there is demand for goods and services exceeds the supply of goods and services.

EBK MICROECONOMICS, Chapter 3, Problem aWYWL , additional homework tip 5

The shifts in the demand curve is shown by the above graph, a right ward shift from D to D1 shows increase in the quantity demanded of the commodity and the left ward shift from D to D2 shows the decrease in the quantity demanded. Changes in the price of commodity can only create movement along the demand curve and it cannot shift the demand curve, changes in income, tastes and preferences, fashion, changes in the prices of other goods can shift the demand curve.

EBK MICROECONOMICS, Chapter 3, Problem aWYWL , additional homework tip 6

The shifts in the supply curve is shown by the above graph a right ward shift from S to S1 shows the increase in the quantity supplied and a leftward shift from S to S2 shows the decrease in the quantity supplied. Changes in input prices, expectations, technology can shift the supply curve; price only can result in a movement in the supply curve.

Answer 6

Chapter 3, Problem aWYWL

To determine

To answer:

What is a competitive market and how it is described by the supply and demand model?

Concept Introduction:

Competitive market: The competitive market is a market where there is large number of buyers and sellers in the, the sellers are profit motive and the buyers want to maximise their satisfaction. In a competitive market no single produce can influence the price of the commodities. If one producer increases the price of his good no one will follow him and the producer may incur losses. In a perfectly competitive market the firms will be selling homogenous product

Explanation:

The competitive market is a place where there are large number of buyers and sellers in the economy. And they are selling homogenous products in the economy. The sellers are profit oriented and the buyers want maximum satisfaction from the products. There is rivalry in the competitive market the actions of one firm affects the decision of another firm so it leads to rivalry in the markets.

Another feature of competitive market is excludability. The firms may exclude the consumers from enjoying their goods or service for an example the movies are only shown to the persons who buy movie tickets, if there is no excludability the consumers become free riders. Another feature of competitive market is the available information is fully reflected in the market for example there is report that hamburger consumption creates more health problems to the people, so due to this report there will be decreased demand for hamburgers in the market. So the available information is fully reflected in the market. The very important feature of competitive market is there is no barriers to entry that means firms can enter and leave the market at any time, there is complete freedom of firms to enter or leave the market.

The above graph shows the supply and demand model in a competitive market, the demand curve will be downward sloping one indicates the negative relationship between the price and quantity demanded, if the prices are high the people will buy less of the product. The supply curve will be upward sloping one indicates the direct relationship between demand and supply. If the prices are high the producers will supply more of their products in the market. The intersection between the demand and supply curve is the equilibrium where the demand and supply are equal. There will be a surplus in the economy when the supply of goods and services exceeds the demand for goods and services and there will be also shortages in the economy when there is demand for goods and services exceeds the supply of goods and services.

The shifts in the demand curve is shown by the above graph, a right ward shift from D to D1 shows increase in the quantity demanded of the commodity and the left ward shift from D to D2 shows the decrease in the quantity demanded. Changes in the price of commodity can only create movement along the demand curve and it cannot shift the demand curve, changes in income, tastes and preferences, fashion, changes in the prices of other goods can shift the demand curve.

The shifts in the supply curve is shown by the above graph a right ward shift from S to S1 shows the increase in the quantity supplied and a leftward shift from S to S2 shows the decrease in the quantity supplied. Changes in input prices, expectations, technology can shift the supply curve; price only can result in a movement in the supply curve.

Expert Solution & Answer

Explanation of Solution

The competitive market is a place where there are large number of buyers and sellers in the economy. And they are selling homogenous products in the economy. The sellers are profit oriented and the buyers want maximum satisfaction from the products. There is rivalry in the competitive market the actions of one firm affects the decision of another firm so it leads to rivalry in the markets.

Another feature of competitive market is excludability. The firms may exclude the consumers from enjoying their goods or service for an example the movies are only shown to the persons who buy movie tickets, if there is no excludability the consumers become free riders. Another feature of competitive market is the available information is fully reflected in the market for example there is report that hamburger consumption creates more health problems to the people, so due to this report there will be decreased demand for hamburgers in the market. So the available information is fully reflected in the market. The very important feature of competitive market is there is no barriers to entry that means firms can enter and leave the market at any time, there is complete freedom of firms to enter or leave the market.

EBK MICROECONOMICS, Chapter 3, Problem aWYWL , additional homework tip 4

The above graph shows the supply and demand model in a competitive market, the demand curve will be downward sloping one indicates the negative relationship between the price and quantity demanded, if the prices are high the people will buy less of the product. The supply curve will be upward sloping one indicates the direct relationship between demand and supply. If the prices are high the producers will supply more of their products in the market. The intersection between the demand and supply curve is the equilibrium where the demand and supply are equal. There will be a surplus in the economy when the supply of goods and services exceeds the demand for goods and services and there will be also shortages in the economy when there is demand for goods and services exceeds the supply of goods and services.

EBK MICROECONOMICS, Chapter 3, Problem aWYWL , additional homework tip 5

The shifts in the demand curve is shown by the above graph, a right ward shift from D to D1 shows increase in the quantity demanded of the commodity and the left ward shift from D to D2 shows the decrease in the quantity demanded. Changes in the price of commodity can only create movement along the demand curve and it cannot shift the demand curve, changes in income, tastes and preferences, fashion, changes in the prices of other goods can shift the demand curve.

EBK MICROECONOMICS, Chapter 3, Problem aWYWL , additional homework tip 6

The shifts in the supply curve is shown by the above graph a right ward shift from S to S1 shows the increase in the quantity supplied and a leftward shift from S to S2 shows the decrease in the quantity supplied. Changes in input prices, expectations, technology can shift the supply curve; price only can result in a movement in the supply curve.

Answer 7

Chapter 3, Problem aWYWL

To determine

To answer:

What is a competitive market and how it is described by the supply and demand model?

Concept Introduction:

Competitive market: The competitive market is a market where there is large number of buyers and sellers in the, the sellers are profit motive and the buyers want to maximise their satisfaction. In a competitive market no single produce can influence the price of the commodities. If one producer increases the price of his good no one will follow him and the producer may incur losses. In a perfectly competitive market the firms will be selling homogenous product

Explanation:

The competitive market is a place where there are large number of buyers and sellers in the economy. And they are selling homogenous products in the economy. The sellers are profit oriented and the buyers want maximum satisfaction from the products. There is rivalry in the competitive market the actions of one firm affects the decision of another firm so it leads to rivalry in the markets.

Another feature of competitive market is excludability. The firms may exclude the consumers from enjoying their goods or service for an example the movies are only shown to the persons who buy movie tickets, if there is no excludability the consumers become free riders. Another feature of competitive market is the available information is fully reflected in the market for example there is report that hamburger consumption creates more health problems to the people, so due to this report there will be decreased demand for hamburgers in the market. So the available information is fully reflected in the market. The very important feature of competitive market is there is no barriers to entry that means firms can enter and leave the market at any time, there is complete freedom of firms to enter or leave the market.

The above graph shows the supply and demand model in a competitive market, the demand curve will be downward sloping one indicates the negative relationship between the price and quantity demanded, if the prices are high the people will buy less of the product. The supply curve will be upward sloping one indicates the direct relationship between demand and supply. If the prices are high the producers will supply more of their products in the market. The intersection between the demand and supply curve is the equilibrium where the demand and supply are equal. There will be a surplus in the economy when the supply of goods and services exceeds the demand for goods and services and there will be also shortages in the economy when there is demand for goods and services exceeds the supply of goods and services.

The shifts in the demand curve is shown by the above graph, a right ward shift from D to D1 shows increase in the quantity demanded of the commodity and the left ward shift from D to D2 shows the decrease in the quantity demanded. Changes in the price of commodity can only create movement along the demand curve and it cannot shift the demand curve, changes in income, tastes and preferences, fashion, changes in the prices of other goods can shift the demand curve.

The shifts in the supply curve is shown by the above graph a right ward shift from S to S1 shows the increase in the quantity supplied and a leftward shift from S to S2 shows the decrease in the quantity supplied. Changes in input prices, expectations, technology can shift the supply curve; price only can result in a movement in the supply curve.

Answer 8

Expert Solution & Answer

Explanation of Solution

The competitive market is a place where there are large number of buyers and sellers in the economy. And they are selling homogenous products in the economy. The sellers are profit oriented and the buyers want maximum satisfaction from the products. There is rivalry in the competitive market the actions of one firm affects the decision of another firm so it leads to rivalry in the markets.

Another feature of competitive market is excludability. The firms may exclude the consumers from enjoying their goods or service for an example the movies are only shown to the persons who buy movie tickets, if there is no excludability the consumers become free riders. Another feature of competitive market is the available information is fully reflected in the market for example there is report that hamburger consumption creates more health problems to the people, so due to this report there will be decreased demand for hamburgers in the market. So the available information is fully reflected in the market. The very important feature of competitive market is there is no barriers to entry that means firms can enter and leave the market at any time, there is complete freedom of firms to enter or leave the market.

EBK MICROECONOMICS, Chapter 3, Problem aWYWL , additional homework tip 4

The above graph shows the supply and demand model in a competitive market, the demand curve will be downward sloping one indicates the negative relationship between the price and quantity demanded, if the prices are high the people will buy less of the product. The supply curve will be upward sloping one indicates the direct relationship between demand and supply. If the prices are high the producers will supply more of their products in the market. The intersection between the demand and supply curve is the equilibrium where the demand and supply are equal. There will be a surplus in the economy when the supply of goods and services exceeds the demand for goods and services and there will be also shortages in the economy when there is demand for goods and services exceeds the supply of goods and services.

EBK MICROECONOMICS, Chapter 3, Problem aWYWL , additional homework tip 5

The shifts in the demand curve is shown by the above graph, a right ward shift from D to D1 shows increase in the quantity demanded of the commodity and the left ward shift from D to D2 shows the decrease in the quantity demanded. Changes in the price of commodity can only create movement along the demand curve and it cannot shift the demand curve, changes in income, tastes and preferences, fashion, changes in the prices of other goods can shift the demand curve.

EBK MICROECONOMICS, Chapter 3, Problem aWYWL , additional homework tip 6

The shifts in the supply curve is shown by the above graph a right ward shift from S to S1 shows the increase in the quantity supplied and a leftward shift from S to S2 shows the decrease in the quantity supplied. Changes in input prices, expectations, technology can shift the supply curve; price only can result in a movement in the supply curve.

Answer 9

Expert Solution & Answer

Answer 10

Expert Solution & Answer

Answer 11

Ch. 3 - Prob. aWYWL Ch. 3 - Prob. bWYWL Ch. 3 - Prob. cWYWL Ch. 3 - Prob. dWYWL Ch. 3 - Prob. eWYWL Ch. 3 - Prob. 1QFT Ch. 3 - Prob. 2QFT Ch. 3 - Prob. 3QFT Ch. 3 - Prob. 1P Ch. 3 - Prob. 2P

Explanation of Solution

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