Microeconomics
10th Edition
ISBN: 9781259655500
Author: David C Colander
Publisher: McGraw-Hill Education
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Question
Chapter 4, Problem 5QAP
(a)
To determine
Describe whether consumers make purchasing decisions based on the general rules of thumb instead of price.
(b)
To determine
Explain the conclusion drawn about the markets.
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Demand, Supply, and Market Equilibrium - Think of a product that you have purchased recently (e.g. soda, diapers, takeout meals, milk, shoes, manicure/pedicure, video game, etc...). Explain how the law of demand affected your purchase. Give specific examples of how the determinants of demand and supply affect this product (T-I-P-E-N and P-R-E-S-T). What happens to the demand curve and the supply curve when any of these determinants change? What would cause a change in demand versus a movement along the same demand curve for this product? How would you determine the new equilibrium price and quantity that result from these changes? Can you demonstrate some of these changes graphically? Price Elasticity of Demand - Consider a product that you have purchased recently. If the price of this item increases, how would you adjust your purchases? Is the Demand for this product Price Elastic or Price Inelastic? Justify your classification by applying the determinants of elasticity to…
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Economics
E Apex Learning
1 2.4.2 Test (CST): Microeconomics
Question 10 of 20
The graph shows the supply and demand curves for a certain
product, which has a current selling price of $300. The laws of
supply and demand most support which conclusion about the
product?
Demand
$500
Supply
$400
$300
$200
$100
1,000 2,000 3,000 4,000 5,000
Quantity
O A. The current selling price matches the product's
equilibrium price.
O B. The current selling price for the product is too high.
O c. The current selling price for the product is the result of
a surplus.
O D. The current selling price for the product is too low.
SUBMIT
E PREVIOUS
Price
The demand and supply schedules for chewing gum are as follows:
Supply: Q= 3P-30
Demand: Q=-2P+ 220
Where Pis the price of gum, and Qis the quantity, in millions of packs.
5. What is the equilibrium price of gum?
(Please enter a whole number, with no decimal point).
6. How many packs of gum will be bought and sold in equilibrium? (Answer in millions, so if the
answer is 9,000,000 packs, write "9".)
(Please enter a whole number, with no decimal point).
7. Suppose that a huge fire destroys one-third of the gum factories. The supply of gum decreases to
two-thirds of the amount shown in the above supply curve (1.e. at every price, 2/3 as much is
supplied as was before the fire). What is the new equilibrium quantity of gum? (In millions).
(Please enter a whole number, with no decimal point).
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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