Microeconomics
10th Edition
ISBN: 9781259655500
Author: David C Colander
Publisher: McGraw-Hill Education
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Question
Chapter 4.1, Problem 5Q
To determine
Explain the effects of price changes in the
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Students have asked these similar questions
instead of a decrease and it was an increase instead of a decrease; would that mean that the demand would increase and will result in a increase in demand for electric guitars?
differentiate increase in supply vs. increase in quantity supplied.
Provide real world examples
Consider the market for cars. Car producers expect the price of cars to increase next month. What will happen to the supply curve right now?
Group of answer choices
A The current supply of cars will decrease (a shift in the entire curve)
B The current supply of cars will increase (a shift in the entire curve)
C The current quantity supplied for cars will increase (a movement along the curve) without a shift in the curve
D The current quantity supplied for cars will decrease (a movement along the curve) without a shift in the curve
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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- How would each event affect the market for COVID-19 vaccines? Does the event cause a change in demand or a change in the quantity demanded? Is the change positive or negative? Or does the event cause a change in supply or a change in the quantity supplied? Is the change positive or negative? Explain the mechanism for the change and what happens to equilibrium price and quantity. a) The vaccine is approved for children under the age of 12. b) The U.S. government provides a subsidy that allows the price of the vaccine to be $0 for everyone. c) Several vaccines pass Phase 3 (large-scale efficacy tests) and are approved by the FDA for full use. d) A truck carrying the Pfizer vaccine has a malfunction and the refrigeration requirements aren’t met, so all the doses go bad. e) School districts and health care facilities add a requirement for getting the vaccine for all employees.arrow_forwardanswer quicklyarrow_forwardDescribe the use of the law of supply or the law of demand in an activity in which you were involved during an average week.arrow_forward
- Pharmaceutical drugs have an inelastic demand and computers have an elastic demand. suppose that technological advance doubles the supply of both product. what happens to the equilibrium price and quantity in each market?arrow_forwardSelect the phrase that correctly completes the following statement. "A decrease in the number of manufacturers caused a decrease in the supply of sailboats. As a result. ________." the price of sailboats increased. The higher price caused the supply of sailboats to increase. the equilibrium quantity of sailboats increased. the price of sailboats increased and the demand for sailboats decreased. the price of sailboats increased and the quantity demanded of sailboats decreased.arrow_forwardThe computer market in recent years has seen many more computers sell at much lower prices. What shift in demand or supply is most likely to explain this outcome? A fall in quantity supplied A fall in quantity demanded A shift in supply A shift in demandarrow_forward
- Pharmaceutical drugs have an inelastic demand, and computers have an elastic demand. Suppose that technological advance doubles the supply of both products. Now the question is: Which product experiences a larger change in QUANTITY and why?arrow_forwardPlease no written by hand and no imagearrow_forwardDraw a supply and demand graph showing an equilibrium price of $50 and an equilibrium quantity of 200 units. Explain what would happen if the selling price was $75, and illustrate this on the graph. Explain what would happen if the selling price was $25, and illustrate this on the graph. Be sure to label each axis and curve on the graph. Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.arrow_forward
- The following diagram illustrates the impact of an increase in demand. Which of the following statements is INCORRECT? a) R12 R11 R10 900 1000 1100 1200 1300 Q Before the increase in demand, the equilibrium price is R10 and the equilibrium quantity is 900. b) Owing to an increase in demand, the demand curve shifts from D to D1. At a price of R10, after the increase in demand, the quantity demanded is 1 200 and the quantity supplied is 1 100. c) At a price of R10, after the increase in demand, there is an excess demand. d) A new equilibrium position is formed after the increase in demand at an equilibrium price of R12 and an equilibrium quantity of 1 100.arrow_forwardDiscuss how the equilibrium price and quantity change when a change in supply occurs and the demand stays constant.arrow_forwardExcess supply of a product will cause the price to As a consequence Market for pizza of the price change, the quantity demanded will quantity 14.00- 13.00- 12.00- 11.00- supplied will increase decrease At the current market price PMatet of $9.00, there i of thousand pizzas per month (Enter your response as a positive integer.) 10.00- 9.00- PMarket a 8.00- * 700- 8 6.00- E 500- 4.00- 3.00- 2.00- 1.00- 40 22 510 15 20 25 30 35 40 45 so 55 60 Thousands of pizzas per month 0.00-arrow_forward
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