MICROECONOMICS
11th Edition
ISBN: 9781266686764
Author: Colander
Publisher: MCG
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Question
Chapter 4.1, Problem 7Q
To determine
Effect of heavy frost in Florida on the
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Question 2 (5 marks)
No words allowed, only a diagram with annotations
To answer this question only a diagram with annotations is required.
Suppose apples and pears are substitutes in consumption. An outbreak of Grumpy Granny Smith fungus
has a devastating effect on the size of the apple crop. Show on a diagram how this will affect the market for
pears. Indicate how the equilibrium price and equilibrium quantity of pears will change. The direction of
any changes should be indicated using arrows.
S
hp
Please turn over.
FTSE jse 40
Given the following information about the supply of and demand for apples:
Price
Quantity demanded (per month)
Quantity Supplied (per month)
P 0.50
12,000
0
0.75
10,000
2,000
1.00
8,000
4,000
1.25
6,000
6,000
1.50
4,000
8,000
1.75
2,000
10,000
2.00
0
12,000
Plot the demand and supply curves, and determine the equilibrium price and quantity.
Assuming the market for apples meets the efficiency condition, show the equilibrium price and quantity that maximizes net benefit to society.
Identify the area of consumer surplus and the area of producer surplus.
determine how the equilibrium price and quantity of coffee beans change if the price of coffee cherries falls by 25%.
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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