ECON MICRO (with MindTap, 1 term (6 months) Printed Access Card) (New, Engaging Titles from 4LTR Press)
6th Edition
ISBN: 9781337408059
Author: William A. McEachern
Publisher: Cengage Learning
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Chapter 4, Problem 10P
To determine
Reason behind raising the
Concept Introduction:
Market shortage refers to a situation in which quantity demanded of the good is greater than the quantity supplied.
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QUESTION 7
The demand for rubber erasers consists of two components. The first component is the demand for rubber erasers by art students. This demand is given by QA = 19,500 -
325P. The second component is the demand for rubber erasers by all others. This demand is given by Qo = 32,000 - 2,000P.
(a) What is the total quantity demanded of rubber erasers if the price of an eraser is:
(i) $10
(ii) $15
(iii) $20
(iv) $30
(v) $70
(b) Assume that the supply of rubber erasers is given by Qs = 14,000+ 175P.
(i) Find the equilibrium price and the equilibrium quantity.
(ii) Calculate the total consumer surplus. [Hint: It may be easier if you calculate the consumer surplus for art students and the consumer surplus for all others
separately, and then add them up.]
(c) Assume that the supply of rubber erasers is given by Qs = 8,390 + 180P. Find the equilibrium price and the equilibrium quantity.
10 (DC)
EN510
11. Study Questions and Problems #11
Initially, a market is in equilibrium, but then both demand and supply decrease. Suppose that the magnitude of the shift in demand is
greater than the shift in supply.
Use the graph input tool to help you answer the following question. You will not be graded on any changes you make to this graph.
PRICE
QUANTITY
Supply
Demand
As a result of the supply and demand shifts, the price will
Demand
--
Supply
, and the quantity will
16. Suppose over the next 10 years the technology associated with producing electric cars advances greatly while the number of buyers in the market increases only slightly. This would mean that:
The price of electric cars would continue to fall.
The price of electric cars would not change but quantity would increase.
Quantity supplied would rise, prices would fall, and demand would increase due to the falling prices.
The price of gas-powered cars would fall.
A and D only.
Chapter 4 Solutions
ECON MICRO (with MindTap, 1 term (6 months) Printed Access Card) (New, Engaging Titles from 4LTR Press)
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- Only typed answer If the demand in a market is Q = 63 – 4P and the supply is Q = -3 + 3P, then what is the equilibrium price (rounded to two decimal places)?arrow_forward(Figure: Market for Tropicana Juices) Tropicana produces both orange juice and lemonade. What will happen to the supply of Tropicana orange juice when the price of lemonade rises in the market and the price of orange juice stays the same? Price Price Price Price Supply Supply Old Old price New New price supply supply New Old Old price New price supply B supply Quantity New quantity quantity Old Quantity Quantity Old quantity quantity New Quantity O Graph D O Graph C O Graph A O Graph Barrow_forwardCarefully explain what is happening in the following markets. Indicate the impact if any on demand, supply, price and quantity: A new discovery in computer manufacturing has made computer production cheaper. Also, the popularity and usefulness of computers continues to grow. Impact on demand? Impact on supply? Impact on price? Impact on quantity?arrow_forward
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