Microeconomics (Book Only)
12th Edition
ISBN: 9781285738307
Author: Roger A. Arnold
Publisher: Cengage Learning
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Chapter 4, Problem 6WNG
To determine
The relative
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Assume there are only two goods (X and Y). Assume the relative price of good X, is 2 of good Y. If income doubles, the price of X doubles and the price of Y doubles, what will be the relative price of good Y?
When Good A and Good B are complements in production and there is a decrease in the price of Good A, what happens in Good B's market?
Goods A and B are substitutes in production. The price of good A rises. As a result,
the equilibrium price of good B and the equilibrium quantity.
A) rises; decreases
B) falls; increases
C) falls; decreases
D) rises; increases
Chapter 4 Solutions
Microeconomics (Book Only)
Ch. 4.1 - Prob. 1STCh. 4.1 - Prob. 2STCh. 4.1 - Prob. 3STCh. 4.2 - Prob. 1STCh. 4.2 - Prob. 2STCh. 4.2 - Prob. 3STCh. 4.3 - Prob. 1STCh. 4.3 - Prob. 2STCh. 4 - Prob. 1VQPCh. 4 - Prob. 2VQP
Ch. 4 - Prob. 3VQPCh. 4 - Prob. 4VQPCh. 4 - Prob. 5VQPCh. 4 - Prob. 1QPCh. 4 - Prob. 2QPCh. 4 - Prob. 3QPCh. 4 - Prob. 4QPCh. 4 - Prob. 5QPCh. 4 - Prob. 6QPCh. 4 - Prob. 7QPCh. 4 - Prob. 8QPCh. 4 - Prob. 9QPCh. 4 - Prob. 10QPCh. 4 - Prob. 11QPCh. 4 - Prob. 1WNGCh. 4 - Prob. 2WNGCh. 4 - Prob. 3WNGCh. 4 - Prob. 4WNGCh. 4 - Prob. 5WNGCh. 4 - Prob. 6WNG
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- In constructing the demand graph to show how the price of a good price affects how much of it the buyers will buy, the convention that economists follow is to measure price on the b. C. d. horizontal axis even though it is the dependent variable. horizontal axis because it is the independent variable. vertical axis even though it is the independent variable. vertical axis because it is the dependent variable.arrow_forwardConsider two goods, X and Y. The price of product X increases from R6 to R8 per unit. As aresult, the quantity demanded of product Y decreases from 200 to 190 units. Q: Give at least two real-world examples of goods like X and Y.arrow_forwardIve asked this before but the answer wasn't what I was looking for- for the price of fertilizers that use petrochemical in regards to the price of oil. How big of a role does oil play? Is the price of the good greatly affected by the price of oil?arrow_forward
- Is it true that all buyers and sellers are content with the market price if a market is in equilibrium? Describe in detailarrow_forwardAssume that the markets for sugar cane, rum and whiskey are initially in equilibrium (i.e., supply equals demand in each case). Assume further that a good harvest impacts the world’s sugar cane crop. Sugar cane is a principal ingredient in rum, but it is not an ingredient in whiskey. Rum and whiskey are substitutes in consumption. Discuss the impact of the good harvest on each of the three markets. Discuss the effect on the markets for each of the three products if the government implements a price restriction in the sugar cane market with the aim of protecting the farmers. How will this impact the revenues for sugar growers, rum producers and whiskey producers?arrow_forwardThe supply curve of some good is vertical. What will be the effects of a fall in demand for it? explain When two people exchange a good for money, we know that they both benefit. If so, why are economists generally uninterested in which of these people receives more of the gains from the exchange? explainarrow_forward
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