The impact on the cigarette market when the remedy for lung cancer is discovered. Concept Introduction: Demand curve: The demand curve is the graphical representation of the relationship between the price of a good or service and the quantity demanded for a given period of time. The X (vertical) axis represents the price and quantity demanded in the Y (horizontal) axis. Supply curve: The supply curve is the graphical representation of the relationship between the price of a good or service and the quantity supplied for a given period of time. The X (vertical) axis represents the price and quantity supplied in the Y (horizontal) axis.

Question

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Answer 1

Question

Chapter 4, Problem 1.1P

A

To determine

The impact on the cigarette market when the remedy for lung cancer is discovered.

Concept Introduction:

Demand curve: The demand curve is the graphical representation of the relationship between the price of a good or service and the quantity demanded for a given period of time. The X (vertical) axis represents the price and quantity demanded in the Y (horizontal) axis.

Supply curve: The supply curve is the graphical representation of the relationship between the price of a good or service and the quantity supplied for a given period of time. The X (vertical) axis represents the price and quantity supplied in the Y (horizontal) axis.

A

Expert Solution

Explanation of Solution

A cure for lung cancer is found

Other things remaining the same, after the cure for lung cancer is found, the fear of getting non-curable cancer in the mind of the smokers will no longer exist. Now they will become fearless and the smoking might increase. The demand for cigarettes will increase. There will be a rightward shift in the demand curve from D1 to D2, supply remaining same at S1.

ECON MACRO, Chapter 4, Problem 1.1P , additional homework tip 1

B

To determine

The impact on the cigarette market when there is a rise in the price of cigars.

Concept Introduction:

Demand curve: The demand curve is the graphical representation of the relationship between the price of a good or service and the quantity demanded for a given period of time. The X (vertical) axis represents the price and quantity demanded in the Y (horizontal) axis.

Supply curve: The supply curve is the graphical representation of the relationship between the price of a good or service and the quantity supplied for a given period of time. The X (vertical) axis represents the price and quantity supplied in the Y (horizontal) axis.

B

Expert Solution

Explanation of Solution

The price of Cigars increases

Other things remaining the same, as the price of the cigarette will increase, the demand for the cigarette will decrease as per the demand law. But as the cigarette is all about addiction, the demand is more inelastic. So the demand will fall but at a much lower rate as compared to the price.

ECON MACRO, Chapter 4, Problem 1.1P , additional homework tip 2

C

To determine

The impact on the cigarette market when the wages in the tobacco growing states increases.

C

Expert Solution

Explanation of Solution

Wages increases substantially in the states that grow tobacco.

Other things remaining the same, as the wages for growing tobacco has increased, it implies that the cost of production of producing cigarettes has increased. Thus the price of cigarette will increase; the demand for the cigarette will decrease as per the demand law. But as the cigarette is all about addiction, the demand is more inelastic. So the demand will fall but at a much lower rate as compared to the price.

ECON MACRO, Chapter 4, Problem 1.1P , additional homework tip 3

Economics Concept Introduction

Introduction:

Demand curve: The demand curve is the graphical representation of the relationship between the price of a good or service and the quantity demanded for a given period of time. The X (vertical) axis represents the price and quantity demanded in the Y (horizontal) axis.

Supply curve: The supply curve is the graphical representation of the relationship between the price of a good or service and the quantity supplied for a given period of time. The X (vertical) axis represents the price and quantity supplied in the Y (horizontal) axis.

D

To determine

The impact on the cigarette market with the discovery of a fertilizer that increases the yield per acre of tobacco.

D

Expert Solution

Explanation of Solution

A fertilizer that increases the yield per acre of tobacco is discovered

Other things remaining the same, as the fertilizer that increases the yield per acre of tobacco is discovered, it implies that the supply of tobacco will be more, and thus the supply of cigarette will increase. There will be a rightward shift in the supply curve from S1 to S2, supply remaining same at D1.

ECON MACRO, Chapter 4, Problem 1.1P , additional homework tip 4

Economics Concept Introduction

Introduction:

Demand curve: The demand curve is the graphical representation of the relationship between the price of a good or service and the quantity demanded for a given period of time. The X (vertical) axis represents the price and quantity demanded in the Y (horizontal) axis.

Supply curve: The supply curve is the graphical representation of the relationship between the price of a good or service and the quantity supplied for a given period of time. The X (vertical) axis represents the price and quantity supplied in the Y (horizontal) axis.

E

To determine

The impact on the cigarette market with an increase in the prices of lighters, matches and lighter fluid.

E

Expert Solution

Explanation of Solution

There is a sharp increase in the price of matches, lighters and lighter fluid

Other things remaining the same, as there is a sharp increase in the price of matches, lighters and lighter fluid, it implies that the demand of cigarette will be less, as the complementary goods price has increased There will be a leftward shift in the demand curve from D1 to D2, supply remaining same at S1.

ECON MACRO, Chapter 4, Problem 1.1P , additional homework tip 5

Economics Concept Introduction

Introduction:

Demand curve: The demand curve is the graphical representation of the relationship between the price of a good or service and the quantity demanded for a given period of time. The X (vertical) axis represents the price and quantity demanded in the Y (horizontal) axis.

Supply curve: The supply curve is the graphical representation of the relationship between the price of a good or service and the quantity supplied for a given period of time. The X (vertical) axis represents the price and quantity supplied in the Y (horizontal) axis.

F

To determine

The impact on the cigarette market when the laws restricting smoking in public places and restaurants have been passed in many states.

F

Expert Solution

Explanation of Solution

More states pass laws restricting the smoking in restaurants and public places.

Other things remaining the same, as more states pass laws restricting the smoking in restaurants and public places, implies restriction in smoking. It will lead to decreases in the demand of cigarette. There will be a leftward shift in the demand curve from D1 to D2, supply remaining same at S1.

ECON MACRO, Chapter 4, Problem 1.1P , additional homework tip 6

Economics Concept Introduction

Introduction:

Demand curve: The demand curve is the graphical representation of the relationship between the price of a good or service and the quantity demanded for a given period of time. The X (vertical) axis represents the price and quantity demanded in the Y (horizontal) axis.

Supply curve: The supply curve is the graphical representation of the relationship between the price of a good or service and the quantity supplied for a given period of time. The X (vertical) axis represents the price and quantity supplied in the Y (horizontal) axis.

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Students have asked these similar questions

Short Description Fiscal Policy Graph Details Shown is a Fiscal Policy diagram with the variable Real GDP (billions of dollars) on the x-axis and the variable Price Level on the y-axis. The x-axis is scaled from 0 to 800 billion dollars with an increment of 40 billion dollars, and the y-axis is scaled from 30 to 150 units with an increment of 5 units. Object Details On the graph we have:Four Line Objects:An upward sloping Aggregate Supply, AS line with two endpoints:Point 1 at (160, 70)Point 2 at (720, 140)A downward sloping Aggregate Demand, AD1 line with two endpoints:Point 1 at (80, 110)Point 2 at (640, 40)A vertical Long-run Aggregate Supply, LRAS with two endpoints:Point 1 at (400, 145)Point 2 at (400, 30)A downward sloping Aggregate Demand, AD line with two endpoints:Point 1 at (720, 60)Point 2 at (160, 130)Two Reference Points:Lines AS, AD, and LRAS intersect at (400, 100)Lines AS and AD1 intersect at (280, 85) a. How much does aggregate demand need to change to restore the…

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Answer 2

Question

Chapter 4, Problem 1.1P

A

To determine

The impact on the cigarette market when the remedy for lung cancer is discovered.

Concept Introduction:

Demand curve: The demand curve is the graphical representation of the relationship between the price of a good or service and the quantity demanded for a given period of time. The X (vertical) axis represents the price and quantity demanded in the Y (horizontal) axis.

Supply curve: The supply curve is the graphical representation of the relationship between the price of a good or service and the quantity supplied for a given period of time. The X (vertical) axis represents the price and quantity supplied in the Y (horizontal) axis.

A

Expert Solution

Explanation of Solution

A cure for lung cancer is found

Other things remaining the same, after the cure for lung cancer is found, the fear of getting non-curable cancer in the mind of the smokers will no longer exist. Now they will become fearless and the smoking might increase. The demand for cigarettes will increase. There will be a rightward shift in the demand curve from D1 to D2, supply remaining same at S1.

ECON MACRO, Chapter 4, Problem 1.1P , additional homework tip 1

B

To determine

The impact on the cigarette market when there is a rise in the price of cigars.

Concept Introduction:

Demand curve: The demand curve is the graphical representation of the relationship between the price of a good or service and the quantity demanded for a given period of time. The X (vertical) axis represents the price and quantity demanded in the Y (horizontal) axis.

Supply curve: The supply curve is the graphical representation of the relationship between the price of a good or service and the quantity supplied for a given period of time. The X (vertical) axis represents the price and quantity supplied in the Y (horizontal) axis.

B

Expert Solution

Explanation of Solution

The price of Cigars increases

Other things remaining the same, as the price of the cigarette will increase, the demand for the cigarette will decrease as per the demand law. But as the cigarette is all about addiction, the demand is more inelastic. So the demand will fall but at a much lower rate as compared to the price.

ECON MACRO, Chapter 4, Problem 1.1P , additional homework tip 2

C

To determine

The impact on the cigarette market when the wages in the tobacco growing states increases.

C

Expert Solution

Explanation of Solution

Wages increases substantially in the states that grow tobacco.

Other things remaining the same, as the wages for growing tobacco has increased, it implies that the cost of production of producing cigarettes has increased. Thus the price of cigarette will increase; the demand for the cigarette will decrease as per the demand law. But as the cigarette is all about addiction, the demand is more inelastic. So the demand will fall but at a much lower rate as compared to the price.

ECON MACRO, Chapter 4, Problem 1.1P , additional homework tip 3

Economics Concept Introduction

Introduction:

Demand curve: The demand curve is the graphical representation of the relationship between the price of a good or service and the quantity demanded for a given period of time. The X (vertical) axis represents the price and quantity demanded in the Y (horizontal) axis.

Supply curve: The supply curve is the graphical representation of the relationship between the price of a good or service and the quantity supplied for a given period of time. The X (vertical) axis represents the price and quantity supplied in the Y (horizontal) axis.

D

To determine

The impact on the cigarette market with the discovery of a fertilizer that increases the yield per acre of tobacco.

D

Expert Solution

Explanation of Solution

A fertilizer that increases the yield per acre of tobacco is discovered

Other things remaining the same, as the fertilizer that increases the yield per acre of tobacco is discovered, it implies that the supply of tobacco will be more, and thus the supply of cigarette will increase. There will be a rightward shift in the supply curve from S1 to S2, supply remaining same at D1.

ECON MACRO, Chapter 4, Problem 1.1P , additional homework tip 4

Economics Concept Introduction

Introduction:

Demand curve: The demand curve is the graphical representation of the relationship between the price of a good or service and the quantity demanded for a given period of time. The X (vertical) axis represents the price and quantity demanded in the Y (horizontal) axis.

Supply curve: The supply curve is the graphical representation of the relationship between the price of a good or service and the quantity supplied for a given period of time. The X (vertical) axis represents the price and quantity supplied in the Y (horizontal) axis.

E

To determine

The impact on the cigarette market with an increase in the prices of lighters, matches and lighter fluid.

E

Expert Solution

Explanation of Solution

There is a sharp increase in the price of matches, lighters and lighter fluid

Other things remaining the same, as there is a sharp increase in the price of matches, lighters and lighter fluid, it implies that the demand of cigarette will be less, as the complementary goods price has increased There will be a leftward shift in the demand curve from D1 to D2, supply remaining same at S1.

ECON MACRO, Chapter 4, Problem 1.1P , additional homework tip 5

Economics Concept Introduction

Introduction:

Demand curve: The demand curve is the graphical representation of the relationship between the price of a good or service and the quantity demanded for a given period of time. The X (vertical) axis represents the price and quantity demanded in the Y (horizontal) axis.

Supply curve: The supply curve is the graphical representation of the relationship between the price of a good or service and the quantity supplied for a given period of time. The X (vertical) axis represents the price and quantity supplied in the Y (horizontal) axis.

F

To determine

The impact on the cigarette market when the laws restricting smoking in public places and restaurants have been passed in many states.

F

Expert Solution

Explanation of Solution

More states pass laws restricting the smoking in restaurants and public places.

Other things remaining the same, as more states pass laws restricting the smoking in restaurants and public places, implies restriction in smoking. It will lead to decreases in the demand of cigarette. There will be a leftward shift in the demand curve from D1 to D2, supply remaining same at S1.

ECON MACRO, Chapter 4, Problem 1.1P , additional homework tip 6

Economics Concept Introduction

Introduction:

Demand curve: The demand curve is the graphical representation of the relationship between the price of a good or service and the quantity demanded for a given period of time. The X (vertical) axis represents the price and quantity demanded in the Y (horizontal) axis.

Supply curve: The supply curve is the graphical representation of the relationship between the price of a good or service and the quantity supplied for a given period of time. The X (vertical) axis represents the price and quantity supplied in the Y (horizontal) axis.

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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 4, Problem 1.1P

A

To determine

The impact on the cigarette market when the remedy for lung cancer is discovered.

Concept Introduction:

Demand curve: The demand curve is the graphical representation of the relationship between the price of a good or service and the quantity demanded for a given period of time. The X (vertical) axis represents the price and quantity demanded in the Y (horizontal) axis.

Supply curve: The supply curve is the graphical representation of the relationship between the price of a good or service and the quantity supplied for a given period of time. The X (vertical) axis represents the price and quantity supplied in the Y (horizontal) axis.

A

Expert Solution

Explanation of Solution

A cure for lung cancer is found

Other things remaining the same, after the cure for lung cancer is found, the fear of getting non-curable cancer in the mind of the smokers will no longer exist. Now they will become fearless and the smoking might increase. The demand for cigarettes will increase. There will be a rightward shift in the demand curve from D1 to D2, supply remaining same at S1.

ECON MACRO, Chapter 4, Problem 1.1P , additional homework tip 1

B

To determine

The impact on the cigarette market when there is a rise in the price of cigars.

Concept Introduction:

Demand curve: The demand curve is the graphical representation of the relationship between the price of a good or service and the quantity demanded for a given period of time. The X (vertical) axis represents the price and quantity demanded in the Y (horizontal) axis.

Supply curve: The supply curve is the graphical representation of the relationship between the price of a good or service and the quantity supplied for a given period of time. The X (vertical) axis represents the price and quantity supplied in the Y (horizontal) axis.

B

Expert Solution

Explanation of Solution

The price of Cigars increases

Other things remaining the same, as the price of the cigarette will increase, the demand for the cigarette will decrease as per the demand law. But as the cigarette is all about addiction, the demand is more inelastic. So the demand will fall but at a much lower rate as compared to the price.

ECON MACRO, Chapter 4, Problem 1.1P , additional homework tip 2

C

To determine

The impact on the cigarette market when the wages in the tobacco growing states increases.

C

Expert Solution

Explanation of Solution

Wages increases substantially in the states that grow tobacco.

Other things remaining the same, as the wages for growing tobacco has increased, it implies that the cost of production of producing cigarettes has increased. Thus the price of cigarette will increase; the demand for the cigarette will decrease as per the demand law. But as the cigarette is all about addiction, the demand is more inelastic. So the demand will fall but at a much lower rate as compared to the price.

ECON MACRO, Chapter 4, Problem 1.1P , additional homework tip 3

Economics Concept Introduction

Introduction:

Demand curve: The demand curve is the graphical representation of the relationship between the price of a good or service and the quantity demanded for a given period of time. The X (vertical) axis represents the price and quantity demanded in the Y (horizontal) axis.

Supply curve: The supply curve is the graphical representation of the relationship between the price of a good or service and the quantity supplied for a given period of time. The X (vertical) axis represents the price and quantity supplied in the Y (horizontal) axis.

D

To determine

The impact on the cigarette market with the discovery of a fertilizer that increases the yield per acre of tobacco.

D

Expert Solution

Explanation of Solution

A fertilizer that increases the yield per acre of tobacco is discovered

Other things remaining the same, as the fertilizer that increases the yield per acre of tobacco is discovered, it implies that the supply of tobacco will be more, and thus the supply of cigarette will increase. There will be a rightward shift in the supply curve from S1 to S2, supply remaining same at D1.

ECON MACRO, Chapter 4, Problem 1.1P , additional homework tip 4

Economics Concept Introduction

Introduction:

Demand curve: The demand curve is the graphical representation of the relationship between the price of a good or service and the quantity demanded for a given period of time. The X (vertical) axis represents the price and quantity demanded in the Y (horizontal) axis.

Supply curve: The supply curve is the graphical representation of the relationship between the price of a good or service and the quantity supplied for a given period of time. The X (vertical) axis represents the price and quantity supplied in the Y (horizontal) axis.

E

To determine

The impact on the cigarette market with an increase in the prices of lighters, matches and lighter fluid.

E

Expert Solution

Explanation of Solution

There is a sharp increase in the price of matches, lighters and lighter fluid

Other things remaining the same, as there is a sharp increase in the price of matches, lighters and lighter fluid, it implies that the demand of cigarette will be less, as the complementary goods price has increased There will be a leftward shift in the demand curve from D1 to D2, supply remaining same at S1.

ECON MACRO, Chapter 4, Problem 1.1P , additional homework tip 5

Economics Concept Introduction

Introduction:

Demand curve: The demand curve is the graphical representation of the relationship between the price of a good or service and the quantity demanded for a given period of time. The X (vertical) axis represents the price and quantity demanded in the Y (horizontal) axis.

Supply curve: The supply curve is the graphical representation of the relationship between the price of a good or service and the quantity supplied for a given period of time. The X (vertical) axis represents the price and quantity supplied in the Y (horizontal) axis.

F

To determine

The impact on the cigarette market when the laws restricting smoking in public places and restaurants have been passed in many states.

F

Expert Solution

Explanation of Solution

More states pass laws restricting the smoking in restaurants and public places.

Other things remaining the same, as more states pass laws restricting the smoking in restaurants and public places, implies restriction in smoking. It will lead to decreases in the demand of cigarette. There will be a leftward shift in the demand curve from D1 to D2, supply remaining same at S1.

ECON MACRO, Chapter 4, Problem 1.1P , additional homework tip 6

Economics Concept Introduction

Introduction:

Demand curve: The demand curve is the graphical representation of the relationship between the price of a good or service and the quantity demanded for a given period of time. The X (vertical) axis represents the price and quantity demanded in the Y (horizontal) axis.

Supply curve: The supply curve is the graphical representation of the relationship between the price of a good or service and the quantity supplied for a given period of time. The X (vertical) axis represents the price and quantity supplied in the Y (horizontal) axis.

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 4, Problem 1.1P

A

To determine

The impact on the cigarette market when the remedy for lung cancer is discovered.

Concept Introduction:

Demand curve: The demand curve is the graphical representation of the relationship between the price of a good or service and the quantity demanded for a given period of time. The X (vertical) axis represents the price and quantity demanded in the Y (horizontal) axis.

Supply curve: The supply curve is the graphical representation of the relationship between the price of a good or service and the quantity supplied for a given period of time. The X (vertical) axis represents the price and quantity supplied in the Y (horizontal) axis.

A

Expert Solution

Explanation of Solution

A cure for lung cancer is found

Other things remaining the same, after the cure for lung cancer is found, the fear of getting non-curable cancer in the mind of the smokers will no longer exist. Now they will become fearless and the smoking might increase. The demand for cigarettes will increase. There will be a rightward shift in the demand curve from D1 to D2, supply remaining same at S1.

ECON MACRO, Chapter 4, Problem 1.1P , additional homework tip 1

B

To determine

The impact on the cigarette market when there is a rise in the price of cigars.

Concept Introduction:

Demand curve: The demand curve is the graphical representation of the relationship between the price of a good or service and the quantity demanded for a given period of time. The X (vertical) axis represents the price and quantity demanded in the Y (horizontal) axis.

Supply curve: The supply curve is the graphical representation of the relationship between the price of a good or service and the quantity supplied for a given period of time. The X (vertical) axis represents the price and quantity supplied in the Y (horizontal) axis.

B

Expert Solution

Explanation of Solution

The price of Cigars increases

Other things remaining the same, as the price of the cigarette will increase, the demand for the cigarette will decrease as per the demand law. But as the cigarette is all about addiction, the demand is more inelastic. So the demand will fall but at a much lower rate as compared to the price.

ECON MACRO, Chapter 4, Problem 1.1P , additional homework tip 2

C

To determine

The impact on the cigarette market when the wages in the tobacco growing states increases.

C

Expert Solution

Explanation of Solution

Wages increases substantially in the states that grow tobacco.

Other things remaining the same, as the wages for growing tobacco has increased, it implies that the cost of production of producing cigarettes has increased. Thus the price of cigarette will increase; the demand for the cigarette will decrease as per the demand law. But as the cigarette is all about addiction, the demand is more inelastic. So the demand will fall but at a much lower rate as compared to the price.

ECON MACRO, Chapter 4, Problem 1.1P , additional homework tip 3

Economics Concept Introduction

Introduction:

Demand curve: The demand curve is the graphical representation of the relationship between the price of a good or service and the quantity demanded for a given period of time. The X (vertical) axis represents the price and quantity demanded in the Y (horizontal) axis.

Supply curve: The supply curve is the graphical representation of the relationship between the price of a good or service and the quantity supplied for a given period of time. The X (vertical) axis represents the price and quantity supplied in the Y (horizontal) axis.

D

To determine

The impact on the cigarette market with the discovery of a fertilizer that increases the yield per acre of tobacco.

D

Expert Solution

Explanation of Solution

A fertilizer that increases the yield per acre of tobacco is discovered

Other things remaining the same, as the fertilizer that increases the yield per acre of tobacco is discovered, it implies that the supply of tobacco will be more, and thus the supply of cigarette will increase. There will be a rightward shift in the supply curve from S1 to S2, supply remaining same at D1.

ECON MACRO, Chapter 4, Problem 1.1P , additional homework tip 4

Economics Concept Introduction

Introduction:

Demand curve: The demand curve is the graphical representation of the relationship between the price of a good or service and the quantity demanded for a given period of time. The X (vertical) axis represents the price and quantity demanded in the Y (horizontal) axis.

Supply curve: The supply curve is the graphical representation of the relationship between the price of a good or service and the quantity supplied for a given period of time. The X (vertical) axis represents the price and quantity supplied in the Y (horizontal) axis.

E

To determine

The impact on the cigarette market with an increase in the prices of lighters, matches and lighter fluid.

E

Expert Solution

Explanation of Solution

There is a sharp increase in the price of matches, lighters and lighter fluid

Other things remaining the same, as there is a sharp increase in the price of matches, lighters and lighter fluid, it implies that the demand of cigarette will be less, as the complementary goods price has increased There will be a leftward shift in the demand curve from D1 to D2, supply remaining same at S1.

ECON MACRO, Chapter 4, Problem 1.1P , additional homework tip 5

Economics Concept Introduction

Introduction:

Demand curve: The demand curve is the graphical representation of the relationship between the price of a good or service and the quantity demanded for a given period of time. The X (vertical) axis represents the price and quantity demanded in the Y (horizontal) axis.

Supply curve: The supply curve is the graphical representation of the relationship between the price of a good or service and the quantity supplied for a given period of time. The X (vertical) axis represents the price and quantity supplied in the Y (horizontal) axis.

F

To determine

The impact on the cigarette market when the laws restricting smoking in public places and restaurants have been passed in many states.

F

Expert Solution

Explanation of Solution

More states pass laws restricting the smoking in restaurants and public places.

Other things remaining the same, as more states pass laws restricting the smoking in restaurants and public places, implies restriction in smoking. It will lead to decreases in the demand of cigarette. There will be a leftward shift in the demand curve from D1 to D2, supply remaining same at S1.

ECON MACRO, Chapter 4, Problem 1.1P , additional homework tip 6

Economics Concept Introduction

Introduction:

Demand curve: The demand curve is the graphical representation of the relationship between the price of a good or service and the quantity demanded for a given period of time. The X (vertical) axis represents the price and quantity demanded in the Y (horizontal) axis.

Supply curve: The supply curve is the graphical representation of the relationship between the price of a good or service and the quantity supplied for a given period of time. The X (vertical) axis represents the price and quantity supplied in the Y (horizontal) axis.

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 4, Problem 1.1P

A

To determine

The impact on the cigarette market when the remedy for lung cancer is discovered.

Concept Introduction:

Demand curve: The demand curve is the graphical representation of the relationship between the price of a good or service and the quantity demanded for a given period of time. The X (vertical) axis represents the price and quantity demanded in the Y (horizontal) axis.

Supply curve: The supply curve is the graphical representation of the relationship between the price of a good or service and the quantity supplied for a given period of time. The X (vertical) axis represents the price and quantity supplied in the Y (horizontal) axis.

A

Expert Solution

Explanation of Solution

A cure for lung cancer is found

Other things remaining the same, after the cure for lung cancer is found, the fear of getting non-curable cancer in the mind of the smokers will no longer exist. Now they will become fearless and the smoking might increase. The demand for cigarettes will increase. There will be a rightward shift in the demand curve from D1 to D2, supply remaining same at S1.

ECON MACRO, Chapter 4, Problem 1.1P , additional homework tip 1

B

To determine

The impact on the cigarette market when there is a rise in the price of cigars.

Concept Introduction:

Demand curve: The demand curve is the graphical representation of the relationship between the price of a good or service and the quantity demanded for a given period of time. The X (vertical) axis represents the price and quantity demanded in the Y (horizontal) axis.

Supply curve: The supply curve is the graphical representation of the relationship between the price of a good or service and the quantity supplied for a given period of time. The X (vertical) axis represents the price and quantity supplied in the Y (horizontal) axis.

B

Expert Solution

Explanation of Solution

The price of Cigars increases

Other things remaining the same, as the price of the cigarette will increase, the demand for the cigarette will decrease as per the demand law. But as the cigarette is all about addiction, the demand is more inelastic. So the demand will fall but at a much lower rate as compared to the price.

ECON MACRO, Chapter 4, Problem 1.1P , additional homework tip 2

C

To determine

The impact on the cigarette market when the wages in the tobacco growing states increases.

C

Expert Solution

Explanation of Solution

Wages increases substantially in the states that grow tobacco.

Other things remaining the same, as the wages for growing tobacco has increased, it implies that the cost of production of producing cigarettes has increased. Thus the price of cigarette will increase; the demand for the cigarette will decrease as per the demand law. But as the cigarette is all about addiction, the demand is more inelastic. So the demand will fall but at a much lower rate as compared to the price.

ECON MACRO, Chapter 4, Problem 1.1P , additional homework tip 3

Economics Concept Introduction

Introduction:

Demand curve: The demand curve is the graphical representation of the relationship between the price of a good or service and the quantity demanded for a given period of time. The X (vertical) axis represents the price and quantity demanded in the Y (horizontal) axis.

Supply curve: The supply curve is the graphical representation of the relationship between the price of a good or service and the quantity supplied for a given period of time. The X (vertical) axis represents the price and quantity supplied in the Y (horizontal) axis.

D

To determine

The impact on the cigarette market with the discovery of a fertilizer that increases the yield per acre of tobacco.

D

Expert Solution

Explanation of Solution

A fertilizer that increases the yield per acre of tobacco is discovered

Other things remaining the same, as the fertilizer that increases the yield per acre of tobacco is discovered, it implies that the supply of tobacco will be more, and thus the supply of cigarette will increase. There will be a rightward shift in the supply curve from S1 to S2, supply remaining same at D1.

ECON MACRO, Chapter 4, Problem 1.1P , additional homework tip 4

Economics Concept Introduction

Introduction:

Demand curve: The demand curve is the graphical representation of the relationship between the price of a good or service and the quantity demanded for a given period of time. The X (vertical) axis represents the price and quantity demanded in the Y (horizontal) axis.

Supply curve: The supply curve is the graphical representation of the relationship between the price of a good or service and the quantity supplied for a given period of time. The X (vertical) axis represents the price and quantity supplied in the Y (horizontal) axis.

E

To determine

The impact on the cigarette market with an increase in the prices of lighters, matches and lighter fluid.

E

Expert Solution

Explanation of Solution

There is a sharp increase in the price of matches, lighters and lighter fluid

Other things remaining the same, as there is a sharp increase in the price of matches, lighters and lighter fluid, it implies that the demand of cigarette will be less, as the complementary goods price has increased There will be a leftward shift in the demand curve from D1 to D2, supply remaining same at S1.

ECON MACRO, Chapter 4, Problem 1.1P , additional homework tip 5

Economics Concept Introduction

Introduction:

Demand curve: The demand curve is the graphical representation of the relationship between the price of a good or service and the quantity demanded for a given period of time. The X (vertical) axis represents the price and quantity demanded in the Y (horizontal) axis.

Supply curve: The supply curve is the graphical representation of the relationship between the price of a good or service and the quantity supplied for a given period of time. The X (vertical) axis represents the price and quantity supplied in the Y (horizontal) axis.

F

To determine

The impact on the cigarette market when the laws restricting smoking in public places and restaurants have been passed in many states.

F

Expert Solution

Explanation of Solution

More states pass laws restricting the smoking in restaurants and public places.

Other things remaining the same, as more states pass laws restricting the smoking in restaurants and public places, implies restriction in smoking. It will lead to decreases in the demand of cigarette. There will be a leftward shift in the demand curve from D1 to D2, supply remaining same at S1.

ECON MACRO, Chapter 4, Problem 1.1P , additional homework tip 6

Economics Concept Introduction

Introduction:

Demand curve: The demand curve is the graphical representation of the relationship between the price of a good or service and the quantity demanded for a given period of time. The X (vertical) axis represents the price and quantity demanded in the Y (horizontal) axis.

Supply curve: The supply curve is the graphical representation of the relationship between the price of a good or service and the quantity supplied for a given period of time. The X (vertical) axis represents the price and quantity supplied in the Y (horizontal) axis.

Answer 6

Chapter 4, Problem 1.1P

A

To determine

The impact on the cigarette market when the remedy for lung cancer is discovered.

Concept Introduction:

Demand curve: The demand curve is the graphical representation of the relationship between the price of a good or service and the quantity demanded for a given period of time. The X (vertical) axis represents the price and quantity demanded in the Y (horizontal) axis.

Supply curve: The supply curve is the graphical representation of the relationship between the price of a good or service and the quantity supplied for a given period of time. The X (vertical) axis represents the price and quantity supplied in the Y (horizontal) axis.

A

Expert Solution

Explanation of Solution

A cure for lung cancer is found

Other things remaining the same, after the cure for lung cancer is found, the fear of getting non-curable cancer in the mind of the smokers will no longer exist. Now they will become fearless and the smoking might increase. The demand for cigarettes will increase. There will be a rightward shift in the demand curve from D1 to D2, supply remaining same at S1.

ECON MACRO, Chapter 4, Problem 1.1P , additional homework tip 1

Answer 7

Chapter 4, Problem 1.1P

A

To determine

The impact on the cigarette market when the remedy for lung cancer is discovered.

Concept Introduction:

Demand curve: The demand curve is the graphical representation of the relationship between the price of a good or service and the quantity demanded for a given period of time. The X (vertical) axis represents the price and quantity demanded in the Y (horizontal) axis.

Supply curve: The supply curve is the graphical representation of the relationship between the price of a good or service and the quantity supplied for a given period of time. The X (vertical) axis represents the price and quantity supplied in the Y (horizontal) axis.

Answer 8

A

Expert Solution

Explanation of Solution

A cure for lung cancer is found

Other things remaining the same, after the cure for lung cancer is found, the fear of getting non-curable cancer in the mind of the smokers will no longer exist. Now they will become fearless and the smoking might increase. The demand for cigarettes will increase. There will be a rightward shift in the demand curve from D1 to D2, supply remaining same at S1.

ECON MACRO, Chapter 4, Problem 1.1P , additional homework tip 1

Answer 9

A

Expert Solution

Answer 10

A

Expert Solution

Answer 11

Expert Solution

Answer 12

B

To determine

The impact on the cigarette market when there is a rise in the price of cigars.

Concept Introduction:

Demand curve: The demand curve is the graphical representation of the relationship between the price of a good or service and the quantity demanded for a given period of time. The X (vertical) axis represents the price and quantity demanded in the Y (horizontal) axis.

Supply curve: The supply curve is the graphical representation of the relationship between the price of a good or service and the quantity supplied for a given period of time. The X (vertical) axis represents the price and quantity supplied in the Y (horizontal) axis.

B

Expert Solution

Explanation of Solution

The price of Cigars increases

Other things remaining the same, as the price of the cigarette will increase, the demand for the cigarette will decrease as per the demand law. But as the cigarette is all about addiction, the demand is more inelastic. So the demand will fall but at a much lower rate as compared to the price.

ECON MACRO, Chapter 4, Problem 1.1P , additional homework tip 2

Answer 13

B

To determine

The impact on the cigarette market when there is a rise in the price of cigars.

Concept Introduction:

Demand curve: The demand curve is the graphical representation of the relationship between the price of a good or service and the quantity demanded for a given period of time. The X (vertical) axis represents the price and quantity demanded in the Y (horizontal) axis.

Supply curve: The supply curve is the graphical representation of the relationship between the price of a good or service and the quantity supplied for a given period of time. The X (vertical) axis represents the price and quantity supplied in the Y (horizontal) axis.

Answer 14

B

Expert Solution

Explanation of Solution

The price of Cigars increases

Other things remaining the same, as the price of the cigarette will increase, the demand for the cigarette will decrease as per the demand law. But as the cigarette is all about addiction, the demand is more inelastic. So the demand will fall but at a much lower rate as compared to the price.

ECON MACRO, Chapter 4, Problem 1.1P , additional homework tip 2

Answer 15

B

Expert Solution

Answer 16

B

Expert Solution

Answer 17

Expert Solution

Answer 18

C

To determine

The impact on the cigarette market when the wages in the tobacco growing states increases.

C

Expert Solution

Explanation of Solution

Wages increases substantially in the states that grow tobacco.

Other things remaining the same, as the wages for growing tobacco has increased, it implies that the cost of production of producing cigarettes has increased. Thus the price of cigarette will increase; the demand for the cigarette will decrease as per the demand law. But as the cigarette is all about addiction, the demand is more inelastic. So the demand will fall but at a much lower rate as compared to the price.

ECON MACRO, Chapter 4, Problem 1.1P , additional homework tip 3

Economics Concept Introduction

Introduction:

Demand curve: The demand curve is the graphical representation of the relationship between the price of a good or service and the quantity demanded for a given period of time. The X (vertical) axis represents the price and quantity demanded in the Y (horizontal) axis.

Supply curve: The supply curve is the graphical representation of the relationship between the price of a good or service and the quantity supplied for a given period of time. The X (vertical) axis represents the price and quantity supplied in the Y (horizontal) axis.

Answer 19

C

To determine

The impact on the cigarette market when the wages in the tobacco growing states increases.

Answer 20

C

Expert Solution

Explanation of Solution

Wages increases substantially in the states that grow tobacco.

Other things remaining the same, as the wages for growing tobacco has increased, it implies that the cost of production of producing cigarettes has increased. Thus the price of cigarette will increase; the demand for the cigarette will decrease as per the demand law. But as the cigarette is all about addiction, the demand is more inelastic. So the demand will fall but at a much lower rate as compared to the price.

ECON MACRO, Chapter 4, Problem 1.1P , additional homework tip 3

Answer 21

C

Expert Solution

Answer 22

C

Expert Solution

Answer 23

Expert Solution

Answer 24

Economics Concept Introduction

Introduction:

Demand curve: The demand curve is the graphical representation of the relationship between the price of a good or service and the quantity demanded for a given period of time. The X (vertical) axis represents the price and quantity demanded in the Y (horizontal) axis.

Supply curve: The supply curve is the graphical representation of the relationship between the price of a good or service and the quantity supplied for a given period of time. The X (vertical) axis represents the price and quantity supplied in the Y (horizontal) axis.

Answer 25

D

To determine

The impact on the cigarette market with the discovery of a fertilizer that increases the yield per acre of tobacco.

D

Expert Solution

Explanation of Solution

A fertilizer that increases the yield per acre of tobacco is discovered

Other things remaining the same, as the fertilizer that increases the yield per acre of tobacco is discovered, it implies that the supply of tobacco will be more, and thus the supply of cigarette will increase. There will be a rightward shift in the supply curve from S1 to S2, supply remaining same at D1.

ECON MACRO, Chapter 4, Problem 1.1P , additional homework tip 4

Economics Concept Introduction

Introduction:

Demand curve: The demand curve is the graphical representation of the relationship between the price of a good or service and the quantity demanded for a given period of time. The X (vertical) axis represents the price and quantity demanded in the Y (horizontal) axis.

Supply curve: The supply curve is the graphical representation of the relationship between the price of a good or service and the quantity supplied for a given period of time. The X (vertical) axis represents the price and quantity supplied in the Y (horizontal) axis.

Answer 26

D

To determine

The impact on the cigarette market with the discovery of a fertilizer that increases the yield per acre of tobacco.

Answer 27

D

Expert Solution

Explanation of Solution

A fertilizer that increases the yield per acre of tobacco is discovered

Other things remaining the same, as the fertilizer that increases the yield per acre of tobacco is discovered, it implies that the supply of tobacco will be more, and thus the supply of cigarette will increase. There will be a rightward shift in the supply curve from S1 to S2, supply remaining same at D1.

ECON MACRO, Chapter 4, Problem 1.1P , additional homework tip 4

Answer 28

D

Expert Solution

Answer 29

D

Expert Solution

Answer 30

Expert Solution

Answer 31

Economics Concept Introduction

Introduction:

Demand curve: The demand curve is the graphical representation of the relationship between the price of a good or service and the quantity demanded for a given period of time. The X (vertical) axis represents the price and quantity demanded in the Y (horizontal) axis.

Supply curve: The supply curve is the graphical representation of the relationship between the price of a good or service and the quantity supplied for a given period of time. The X (vertical) axis represents the price and quantity supplied in the Y (horizontal) axis.

Answer 32

E

To determine

The impact on the cigarette market with an increase in the prices of lighters, matches and lighter fluid.

E

Expert Solution

Explanation of Solution

There is a sharp increase in the price of matches, lighters and lighter fluid

Other things remaining the same, as there is a sharp increase in the price of matches, lighters and lighter fluid, it implies that the demand of cigarette will be less, as the complementary goods price has increased There will be a leftward shift in the demand curve from D1 to D2, supply remaining same at S1.

ECON MACRO, Chapter 4, Problem 1.1P , additional homework tip 5

Economics Concept Introduction

Introduction:

Demand curve: The demand curve is the graphical representation of the relationship between the price of a good or service and the quantity demanded for a given period of time. The X (vertical) axis represents the price and quantity demanded in the Y (horizontal) axis.

Supply curve: The supply curve is the graphical representation of the relationship between the price of a good or service and the quantity supplied for a given period of time. The X (vertical) axis represents the price and quantity supplied in the Y (horizontal) axis.

Answer 33

E

To determine

The impact on the cigarette market with an increase in the prices of lighters, matches and lighter fluid.

Answer 34

E

Expert Solution

Explanation of Solution

There is a sharp increase in the price of matches, lighters and lighter fluid

Other things remaining the same, as there is a sharp increase in the price of matches, lighters and lighter fluid, it implies that the demand of cigarette will be less, as the complementary goods price has increased There will be a leftward shift in the demand curve from D1 to D2, supply remaining same at S1.

ECON MACRO, Chapter 4, Problem 1.1P , additional homework tip 5

Answer 35

E

Expert Solution

Answer 36

E

Expert Solution

Answer 37

Expert Solution

Answer 38

Economics Concept Introduction

Introduction:

Demand curve: The demand curve is the graphical representation of the relationship between the price of a good or service and the quantity demanded for a given period of time. The X (vertical) axis represents the price and quantity demanded in the Y (horizontal) axis.

Supply curve: The supply curve is the graphical representation of the relationship between the price of a good or service and the quantity supplied for a given period of time. The X (vertical) axis represents the price and quantity supplied in the Y (horizontal) axis.

Answer 39

F

To determine

The impact on the cigarette market when the laws restricting smoking in public places and restaurants have been passed in many states.

F

Expert Solution

Explanation of Solution

More states pass laws restricting the smoking in restaurants and public places.

Other things remaining the same, as more states pass laws restricting the smoking in restaurants and public places, implies restriction in smoking. It will lead to decreases in the demand of cigarette. There will be a leftward shift in the demand curve from D1 to D2, supply remaining same at S1.

ECON MACRO, Chapter 4, Problem 1.1P , additional homework tip 6

Economics Concept Introduction

Introduction:

Demand curve: The demand curve is the graphical representation of the relationship between the price of a good or service and the quantity demanded for a given period of time. The X (vertical) axis represents the price and quantity demanded in the Y (horizontal) axis.

Supply curve: The supply curve is the graphical representation of the relationship between the price of a good or service and the quantity supplied for a given period of time. The X (vertical) axis represents the price and quantity supplied in the Y (horizontal) axis.

Answer 40

F

To determine

The impact on the cigarette market when the laws restricting smoking in public places and restaurants have been passed in many states.

Answer 41

F

Expert Solution

Explanation of Solution

More states pass laws restricting the smoking in restaurants and public places.

Other things remaining the same, as more states pass laws restricting the smoking in restaurants and public places, implies restriction in smoking. It will lead to decreases in the demand of cigarette. There will be a leftward shift in the demand curve from D1 to D2, supply remaining same at S1.

ECON MACRO, Chapter 4, Problem 1.1P , additional homework tip 6

Answer 42

F

Expert Solution

Answer 43

F

Expert Solution

Answer 44

Expert Solution

Answer 45

Economics Concept Introduction

Introduction:

Demand curve: The demand curve is the graphical representation of the relationship between the price of a good or service and the quantity demanded for a given period of time. The X (vertical) axis represents the price and quantity demanded in the Y (horizontal) axis.

Supply curve: The supply curve is the graphical representation of the relationship between the price of a good or service and the quantity supplied for a given period of time. The X (vertical) axis represents the price and quantity supplied in the Y (horizontal) axis.

Answer 46

Ch. 4 - Prob. 1.1P Ch. 4 - Prob. 1.2P Ch. 4 - Prob. 2.3P Ch. 4 - Prob. 3.4P Ch. 4 - Prob. 3.5P Ch. 4 - Prob. 4.6P Ch. 4 - Prob. 4.7P Ch. 4 - Prob. 4.8P Ch. 4 - Prob. 5.10P Ch. 4 - Prob. 5.9P

Explanation of Solution

Explanation of Solution

The impact on the cigarette market when the wages in the tobacco growing states increases.

Explanation of Solution

The impact on the cigarette market with the discovery of a fertilizer that increases the yield per acre of tobacco.

Explanation of Solution

The impact on the cigarette market with an increase in the prices of lighters, matches and lighter fluid.

Explanation of Solution

The impact on the cigarette market when the laws restricting smoking in public places and restaurants have been passed in many states.

Explanation of Solution

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