Microeconomics
11th Edition
ISBN: 9781260507140
Author: David C. Colander
Publisher: McGraw Hill Education
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Question
Chapter 4, Problem 3IP
(a)
To determine
Determine what would the recall likely do to the
(b)
To determine
The effect of the decision of the government to issue the remaining stamps when it could not recall all the stamps.
(c)
To determine
Effects of government’s decision on stamp holders’ actions.
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Students have asked these similar questions
Imagine you are a bank manager. Currently, your bank holds $8 million in deposits at a 4% interest rate. However, you need to increase the total deposits to $10 million. The interest rate elasticity of savings is 40.
What interest rate should you offer to depositors to obtain the required amount, all other things being equal?
Demand is likely to be price elastic if:
1. the buyers can use normal inflation to explain the price increase
2. buyers do not readily notice price changes
3. buyers think a higher price is justified by quality differences
4. there are many alternatives and direct substitutes for the product
5. buyers are slow to change their purchasing habits
Use the following demand function to answer questions 3-4. Show all your work to receive full
credit.
Qpork= 5.2 – 1.47Ppork + 1.82Peef + 0.18Pchicken + 0.38/
Calculate the cross-price elasticity of pork demand with respect to beef if the price
of pork is $3.78/lb., the price of beef is $6.15/1b., the price of chicken is $1.90/lb., disposable
income is $48000 per capita, and the total quantity demanded of pork is 52 lbs. per capita.
If the price of beef increases by 12%, how much would you expect the quantity
demanded of pork to change (in lbs.)?
Chapter 4 Solutions
Microeconomics
Ch. 4.1 - Prob. 1QCh. 4.1 - Prob. 2QCh. 4.1 - Prob. 3QCh. 4.1 - Prob. 4QCh. 4.1 - Prob. 5QCh. 4.1 - Prob. 6QCh. 4.1 - Prob. 7QCh. 4.1 - Prob. 8QCh. 4.1 - Prob. 9QCh. 4.1 - Prob. 10Q
Ch. 4 - Prob. 1QECh. 4 - Prob. 2QECh. 4 - Prob. 3QECh. 4 - Prob. 4QECh. 4 - Prob. 5QECh. 4 - Prob. 6QECh. 4 - Prob. 7QECh. 4 - Prob. 8QECh. 4 - Prob. 9QECh. 4 - Prob. 10QECh. 4 - Prob. 11QECh. 4 - Prob. 12QECh. 4 - Prob. 13QECh. 4 - Prob. 14QECh. 4 - Prob. 15QECh. 4 - Prob. 16QECh. 4 - Prob. 17QECh. 4 - Prob. 18QECh. 4 - Prob. 19QECh. 4 - Prob. 20QECh. 4 - Prob. 21QECh. 4 - Prob. 22QECh. 4 - Prob. 23QECh. 4 - Prob. 24QECh. 4 - Prob. 1QAPCh. 4 - Prob. 2QAPCh. 4 - Prob. 3QAPCh. 4 - Prob. 4QAPCh. 4 - Prob. 5QAPCh. 4 - Prob. 6QAPCh. 4 - Prob. 1IPCh. 4 - Prob. 2IPCh. 4 - Prob. 3IPCh. 4 - Prob. 4IPCh. 4 - Prob. 5IP
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