Brief Principles of Macroeconomics (MindTap Course List)
8th Edition
ISBN: 9781337091985
Author: N. Gregory Mankiw
Publisher: Cengage Learning
expand_more
expand_more
format_list_bulleted
Question
Chapter 4, Problem 4PA
Subpart (a):
To determine
Identifying complements and substitutes.
Subpart (b):
To determine
Identifying complements and substitutes and change in equilibrium position.
Subpart (c):
To determine
Identifying complements and substitutes and change in equilibrium position.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solution
Students have asked these similar questions
Consider the markets for film streaming services, TV screens, and tickets at movie theaters.
a. For each pair, identify whether they are complements or substitutes:
Film streaming and TV screens
Film streaming and movie tickets
TV screens and movie tickets
b. Suppose a technological advance reduces the cost of manufacturing TV screens. Draw a diagram to show what happens in the market for TV screens.
c. Draw two more diagrams to show how the change in the market for TV screens affects the markets for film streaming and movie tickets.
Consider the markets for film streaming services,TV screens,and tickets at movie theaters.a.For each pair,identify whether they are complements or substitutes:Film streaming and TV screens.Film streaming and movie ticketsTV screens and movie ticketsb.Suppose a technological advance reduces the cost of manufacturing TV screens.c. Draw two more diagram to show how the change in the market for TV screens affects the markets for film streaming and movie tickets.
Show necessary and appropriate steps. No credits will be given to answers without
showing necessary calculations and/or explanations.
1. Consider the markets for DVD movies, TV screens, and tickets at movie theaters.
a. For each pair, identify whether they are complements or substitutes:
DVDs and TV screens
DVDs and movie tickets
TV screens and movie tickets
b. Suppose a technological advance reduces the cost of manufacturing TV screens.
Draw a diagram and explain what happens in the market for TV screens.
Chapter 4 Solutions
Brief Principles of Macroeconomics (MindTap Course List)
Ch. 4.1 - Prob. 1QQCh. 4.2 - Prob. 2QQCh. 4.3 - Prob. 3QQCh. 4.4 - Prob. 4QQCh. 4 - Prob. 1CQQCh. 4 - Prob. 2CQQCh. 4 - Prob. 3CQQCh. 4 - Prob. 4CQQCh. 4 - Prob. 5CQQCh. 4 - Prob. 6CQQ
Ch. 4 - Prob. 1QRCh. 4 - Prob. 2QRCh. 4 - Prob. 3QRCh. 4 - Prob. 4QRCh. 4 - Prob. 5QRCh. 4 - Prob. 6QRCh. 4 - Prob. 7QRCh. 4 - Prob. 8QRCh. 4 - Prob. 9QRCh. 4 - Prob. 1PACh. 4 - Prob. 2PACh. 4 - Consider the market for minivans. For each of the...Ch. 4 - Prob. 4PACh. 4 - Prob. 5PACh. 4 - Prob. 6PACh. 4 - Prob. 7PACh. 4 - Prob. 8PACh. 4 - Prob. 9PACh. 4 - Prob. 10PACh. 4 - Prob. 11PA
Knowledge Booster
Similar questions
- The following table summarizes information about the market for principles of economics textbooks: Price Quantity Demanded per Year Quantity Supplied per Year $45 4,300 300 55 2,300 700 65 1,300 1,300 75 800 2,100 85 650 3,100 What is the market equilibrium price and quantity of textbooks? To quell outrage over tuition increases, the college places a $55 limit on the price of textbooks. How many textbooks will be sold now? While the price limit is still in effect, automated publishing increases the efficiency of textbook production. Show graphically the likely effect of this innovation on the market price and quantity.arrow_forwardSuppose there are three buyers of candy in a market: Tex, Dex, and Rex. The market demand and the individual demands of Tex, Dex, and Rex are shown in the following table. a. Fill in the table for the missing values.b. Which buyer demands the least at a price of $5? The most at a price of $7?c. Which buyer’s quantity demanded increases the most when the price is lowered from $7 to $6?d. Which direction would the market demand curve shift if Tex withdrew from the market? What if Dex doubled his purchases at each possible price?e. Suppose that at a price of $6, the total quantity demanded increases from 19 to 38. Is this a “change in the quantity demanded” or a “change in demand”?arrow_forwardSuppose that the current market for SUVs has a price of $20. 000 and sells 50,000 cars. Suppose that the price of mini vans (a substitute for SUVs) decreases, which of the following COULD be the new price and quantity in the market for SUVs?arrow_forward
- The following table describes the market for waffles in Pawnee, Indiana. Quantity Price Quantity Supplied Demanded $0 150 130 40 110 80 $6 90 120 Use the information in the table to answer the questions below. Please enter your answers as numbers and not words. For price please enter your answer as a whole number (ie. 8 not "Eight" or "Eight dollars"). For quantity please enter your answer as a whole number as well (ie. 60 not "Sixty" or "Sixty waffles"). What is the equilibrium price for waffles in this market? What is the equilibrium quantity for waffles in this market? 2. %24 %24arrow_forwardFor consumers, computers are a complement to computer software. Suppose the price of a computer falls. Simultaneously, suppose that the number of companies selling computer software decreases. How do these changes affect the price and quantity of computer software?arrow_forwardThe demand and supply schedules for sunscreen at a small beach are shown below. Market for Sunscreen Price (dollars per bottle) Quantity of Sunscreen Demanded (bottles) Quantity of Sunscreen Supplied (bottles) $30 1,400 8,900 25 2,400 7,400 20 3,400 5,900 15 4,400 4,400 10 5,400 2,900 5 6,400 1,400 Instructions: Enter your answers as a whole number.…arrow_forward
- What effect will each of the following have on the supply of auto tires? Microeconomics chapter 3 Supply is a schedule or curve showing the amounts of a productthat producers are willing to offer in the market at each possibleprice during a specific period. The law of supply states that otherthings equal, producers will offer more of a product at a high pricethan at a low price. Thus, the relationship between price and quantity supplied is positive or direct, and supply is graphed as anupsloping curve.The market supply curve is the horizontal summation of thesupply curves of the individual producers of the product.Changes in one or more of the determinants of supply (resource prices, production techniques, taxes or subsidies, the pricesof other goods, producer expectations, or the number of sellers inthe market) shift the supply curve of a product. A shift to the rightis an increase in supply; a shift to the left is a decrease in supply. Incontrast, a change in the price of the…arrow_forwardWhat effect will each of the following have on the supply of auto tires? Microeconomics chapter 3 Supply is a schedule or curve showing the amounts of a productthat producers are willing to offer in the market at each possibleprice during a specific period. The law of supply states that otherthings equal, producers will offer more of a product at a high pricethan at a low price. Thus, the relationship between price and quantity supplied is positive or direct, and supply is graphed as anupsloping curve.The market supply curve is the horizontal summation of thesupply curves of the individual producers of the product.Changes in one or more of the determinants of supply (resource prices, production techniques, taxes or subsidies, the pricesof other goods, producer expectations, or the number of sellers inthe market) shift the supply curve of a product. A shift to the rightis an increase in supply; a shift to the left is a decrease in supply. Incontrast, a change in the price of the…arrow_forwardWhen the price of cable TV decreases what will happen to the demand for satellite TV? Draw a diagram to illustrate your answer.arrow_forward
- The figure below illustrates the market for pumpkins just before the harvest for Halloween. Currently the market equilibrium price of a pumpkin is $6. At that price, consumers would buy them million pumpkins. Suppose a freak storm wipes out 30% of the pumpkin crop. On the graph, shift the appropriate curve to reflect the impact of the storm on the equilibrium price and quantity of pumpkins. figure calculate the price elasticity of demand for pumpkins. Use the midpoint formula. Round your answer to two decimal points.arrow_forwardOffice 365 << < CENGAGE MINDTAP e-Services - Home -... Homework: Chapter 03 Back to Assignment Attempts 6. Shifts in supply or demand I YouTube Keep the Highest / 1 PRICE (Dollars per donut) QUANTITY (Donuts) Q Search M Gmail The following graph shows the market for donuts in Detroit, where there are over a thousand donut shops at any given moment. Suppose the Surgeon General issues a public statement saying that consuming donuts is bad for your health. Supply Show the effect of this change on the market for donuts by shifting one or both of the curves on the following graph, holding all else constant. Demand -O Maps Demand 398032670003&eISBN=9780357720677&id=1865330432&snapshot Supply H Hennepin Technical... L eservices and How to program la... Grade It Now Save & Continue Continue without saving F7 PrtScn F8 Hoarrow_forwardc. More computers are produced and sold at the lower price than at the higher price. Does this mean the price effect doesn't apply to the supply of computers? Explain.arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
Essentials of Economics (MindTap Course List)EconomicsISBN:9781337091992Author:N. Gregory MankiwPublisher:Cengage Learning
Principles of Economics (MindTap Course List)EconomicsISBN:9781305585126Author:N. Gregory MankiwPublisher:Cengage Learning
Brief Principles of Macroeconomics (MindTap Cours...EconomicsISBN:9781337091985Author:N. Gregory MankiwPublisher:Cengage Learning
Principles of Macroeconomics (MindTap Course List)EconomicsISBN:9781305971509Author:N. Gregory MankiwPublisher:Cengage Learning
Exploring EconomicsEconomicsISBN:9781544336329Author:Robert L. SextonPublisher:SAGE Publications, Inc
Managerial Economics: A Problem Solving ApproachEconomicsISBN:9781337106665Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike ShorPublisher:Cengage Learning
Essentials of Economics (MindTap Course List)
Economics
ISBN:9781337091992
Author:N. Gregory Mankiw
Publisher:Cengage Learning
Principles of Economics (MindTap Course List)
Economics
ISBN:9781305585126
Author:N. Gregory Mankiw
Publisher:Cengage Learning
Brief Principles of Macroeconomics (MindTap Cours...
Economics
ISBN:9781337091985
Author:N. Gregory Mankiw
Publisher:Cengage Learning
Principles of Macroeconomics (MindTap Course List)
Economics
ISBN:9781305971509
Author:N. Gregory Mankiw
Publisher:Cengage Learning
Exploring Economics
Economics
ISBN:9781544336329
Author:Robert L. Sexton
Publisher:SAGE Publications, Inc
Managerial Economics: A Problem Solving Approach
Economics
ISBN:9781337106665
Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher:Cengage Learning