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 14P
To determine
Effect on the
Concept Introduction:
Equilibrium refers to a situation where the quantity demanded of the good equals the quantity supplied of thee good. It means the market clears.
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Suppose we are analyzing the market for pizza as shown
on the graph below. Answer the following questions:-
Price
$40
35
30
25
20
15
10
100 200 300 400 500 600 700 800
Quantity
Suppose the cost of production (input prices)
increase in the market. What do you expect to happen to
the market? Explain briefly. (2 marks)
е.
Is
PRICE (Dollars per pound)
North
South
APPLES (Thousands of pounds per year)
(?)
In the North, if the price goes up by $0.20 per pound, then the quantity supplied in the North goes up by 100 pounds per year. If the price of apples
goes up by $0.20 in the South, what will happen to the quantity supplied?
The quantity will increase by 100 pounds per year.
The quantity will increase by 50 pounds per year.
There is not enough information given to determine the supply change in the South.
The quantity will decrease by 100 pounds per year.
(Figure: Demand and Supply of Sugar) Use Figure: Demand and Supply of Sugar. A
factor that may have shifted the supply from S₁ to S₂ is:
Price
(per pound)
$50
40
40
30
25
20
15
10
0
100
200
S₁
$2
D
500
600
300 400
Quantity of sugar (per month)
better technology in the production of sugar.
increased demand.
lower labor productivity in sugar production.
increased prices of substitutes in the production of sugar.
Chapter 4 Solutions
ECON MICRO (with MindTap, 1 term (6 months) Printed Access Card) (New, Engaging Titles from 4LTR Press)
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Similar questions
- (a) On the first graph that follows, show the effect of a shift of the entire supply curve resulting from suppliers producing more peanut butter at every given price. (graph 1) (b) On the next graph, show the effect of a movement along a fixed supply curve that results from an increase in the price of peanut butter, with every other factor held constant. (graph has square on it)arrow_forward(Figure: Supply Curves) Yantai Pacific produces and sells home textile products, such as sheet sets and comforters, to several major retailers. Yantai can procure cotton and thread from numerous suppliers. Yantai also has a large pool of applicants to add workers as needed. Which graph BEST represents Yantai's supply? Product A Product C Price A B Product B Supply IVE Quantity Supply 4 Quantity Price Price Supply Quantity Price Product D Supply Quantityarrow_forward(Demand and Supply) How do you think each of the following affected the world price of oil? (Use demand and supply analysis.) a. Tax credits were offered for expenditures on home insulation. b. The Alaskan oil pipeline was completed. c. The ceiling on the price of oil was removed. d. Oil was discovered in the North Sea. e. Sport utility vehicles and minivans became popular. i. The use of nuclear power declined.arrow_forward
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