MICROECONOMICS
11th Edition
ISBN: 9781266686764
Author: Colander
Publisher: MCG
expand_more
expand_more
format_list_bulleted
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.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solution
Students have asked these similar questions
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…
12:39
LTE
AA
course.apexlearning.com
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
Knowledge Booster
Similar questions
- Why is the point where demand and and supply cross considered an equilibrium?arrow_forwardIn each of the following cases, determine how supply or demand shifts and how the equilibrium changes. Select the correct answer in each blank space (_______) a. Smartphones: Microchips used in smartphones become less costly to produce. As a result, the __________________( *Supply of and demand for, *Supply of, or *Demand for) smartphones increase(s), causing the equilibrium price to (*Rise, *Fall, or *Rise, fall or remain unchanged) and the equilibrium quantity to (*Rise, fall or remain unchanged, *Rise, *Fall) b. ALS medical research funds: The ALS ice bucket challenge goes viral, leading to greater awareness of the benefits of and need for ALS research. As a result, the _____________ ( *Supply of and demand for, *Supply of, or *Demand for) ALS research increase(s), causing the equilibrium price (or opportunity cost) of such research to __________ (*Rise, fall or remain unchanged, *Rise, *Fall) and the equilibrium quantity to __________ (*Rise, fall or remain…arrow_forwardQUESTIONS: Scenario 1: As part of an international trade agreement, the Oman government reduces the tax on imported coffee. a. Will this affect the supply or the demand for coffee? Why? b. Which determinant of demand or supply is being affected? Explain. c. Show graphically the effect of changes in demand or supply. d. How will this change the equilibrium price and quantity of coffee? Explain your reasoning. Scenario 2: The Ministry of health publishes a study finding that coffee drinking reduces the probability of getting cancer. a. How do you imagine this will affect the market for coffee? Why? b. Which determinant of demand or supply is being affected? Explain. c. Show graphically the changes in demand or supply. d. Will this change the equilibrium price and quantity of coffee? Explain your reasoning.arrow_forward
- How do prices attain a state of equilibrium? Give a specific example.arrow_forwardpage 3 of 30) - Work - Microsoft Edge Pelearn.squ.edu.om/mod/quiz/attempt.php?attempt=1741568&cmid=862538&page=2 ARNING SYSTEM (ACADEMIC) 8 B 7 S1 3 3 4 5 6 7 8 9 10 11 12 Cheeseburgers Figure 3.19 Refer to Figure 3.19. The market is initially in equilibrium at Point A. If supply shifts from S1 to S2 and the price of cheeseburgers remains constant at $5.00, there will be O a. an excess supply of 3 cheeseburgers. Ob. an excess demand of 6 cheeseburgers. an excess demand of 4 cheeseburgers. O d. an excess supply of 6 cheeseburgers. a pe here to search Cip Price ($)arrow_forwardWhat might a producer do if consumers stopped purchasing their goods? Provide an example of this occurrencearrow_forward
- A survey shows an increase in drug use by young people. In the ensuing debate, two hypotheses are proposed: • Reduced police efforts have increased the availability of drugs on the street. • Cutbacks in education efforts have decreased awareness of the dangers of drug addiction.a. Use supply-and-demand diagrams to show how each of these hypotheses could lead to an increase in quantity of drugs consumed. b. How could information on what has happened to the price of drugs help us to distinguish between these explanations?arrow_forwardThe market for tomatoes is in equilibrium. This week scientists developed a new type of technology that will make production of tomatoes more resilient to plague and improve production. In addition, other scientists discover that eating tomatoes can make you live longer. How this will affect the Supply and Demand in the tomatoes market. You need to graph on paper (no need to write here). In your graph, the effect on supply will be greater than the effect on demand. REQUIRED A. What will happen to the price of tomatoes? B. What will happen to the quantities of tomatoes produced?arrow_forwardSuppose a war breaks out in the Middle East, where a large proportion of the world's oil production takes place. Answer the following questions using supply-and-demand graphs. How will the market for used SUVs be affected? How do the equilibrium price and quantity change? Is there any ambiguity in the change in equilibrium price and/or equilibrium quantity?arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
Exploring EconomicsEconomicsISBN:9781544336329Author:Robert L. SextonPublisher:SAGE Publications, Inc
Exploring Economics
Economics
ISBN:9781544336329
Author:Robert L. Sexton
Publisher:SAGE Publications, Inc