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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Question
Chapter 4, Problem 11P
To determine
The economic developments restoring
Concept Introduction:
Market equilibrium- The
Market clearing price- The price at the market equilibrium is known as the market clearing price as any shortage or surplus existent at other prices are cleared or eliminated at this price.
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Suppose both the demand for olives and the supply of olives decline by equal amounts over some time period. Use graphical analysis
to show the effect on equilibrium price and quantity.
Instructions: On the graph below, use your mouse to click and drag the supply and demand curves as necessary.
Price of olives
Quantity of olives
S₁
O
Suppose both the demand for olives and the supply of olives decline by equal amounts over some time period. Use graphical analysis to show
the effect on equilibrium price and quantity.
Instructions: On the graph below, use your mouse to click and drag the supply and demand curves as necessary.
D1
Quantity of olives
Price of olives
8. Shifts in supply or demand I
The following graph plots the market for electric guitars in Chicago, where there are always over
1,000 music stores. Suppose the price of acoustic guitars decreases. (Assume that people regard
electric guitars and acoustic guitars as substitutes.)
Show the effect of this change on the market for electric guitars by shifting one or both of the
curves on the following graph, holding all else constant.
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position, so if you try to move a curve and it snaps back to its original position, just drag it a little
farther.
PRICE (Dollars per guitar)
QUANTITY (Guitars)
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Chapter 4 Solutions
ECON MICRO (with MindTap, 1 term (6 months) Printed Access Card) (New, Engaging Titles from 4LTR Press)
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