EBK ECONOMICS: PRINCIPLES AND POLICY
13th Edition
ISBN: 8220100605932
Author: Blinder
Publisher: Cengage Learning US
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Chapter 4, Problem 1DQ
To determine
Distinguish the
Expert Solution & Answer
Explanation of Solution
Rent of the videos depends upon its
The demand curve for video shows the relationship between its price and its quantity demand at different prices (keep other factors constant). Thus, the origin of demand curve is developed by plotting the demand for videos at different prices in a figure and draws a line through the plotted point and it gives the shape of the demand curve. The term quantity demanded depends on the product price, income of the consumer, and price of other product. If there is high price for a video, the quantity demanded for video would decrease, because at high price people are reluctant to consume more quantity. Thus, the shape of the demand curve of video is downward sloping. It shows the negative relationship between the price and quantity demanded.
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Students have asked these similar questions
The idea that a country can experience gains from trade means that it can
A) consume at a point outside its production possibilities frontier.
B) increase its exports.
C) increase the efficiency of its production.
D) experience a bowed-out production possibilities frontier.
A country is likely to have a comparative advantage in a land-intensive activity if it has a
A) alot of land relative to its population.
B) large population relative to its landmass.
C) higher opportunity cost of producing technology.
D) large amount of capital equipment relative to its population.
Florin and Guilder are two countries separated by a narrow sea. They use currencies called, respectively, the Flop and the Gulp.
Suppose the nominal exchange rate is 20 Flops per Gulp.
A Guilderian trader buys a 120 Flop barrel of Florish pickles by exchanging 6 Gulps, and a Florish trader buys a 4 Gulp crate of Guilderian apples by exchanging 80 Flops.
Then the Gulp depreciates to 10 Flops per Gulp.
Instructions: Enter your answers as whole numbers.
How much must the Guilderian pay for the same 120 Flop barrel of pickles?
Gulps
How much must the Florish trader pay for the same 4 Gulp crate of apples?
Flops
Chapter 4 Solutions
EBK ECONOMICS: PRINCIPLES AND POLICY
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