Microeconomics
2nd Edition
ISBN: 9781259813337
Author: KARLAN, Dean S., Morduch, Jonathan
Publisher: Mcgraw-hill Education,
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Chapter 5, Problem 22PA
To determine
The
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Consider the market for LCD TVs, illustrated in the figure to the
right.
Use the point drawing tool to identify the market equilibrium.
Properly label this point.
Carefully follow the instructions above, and only draw the
required objects.
Suppose instead that the price of LCD TVs is $2000.00. This
will result in a
, which will place
pressure on the price.
Price of LCD TVs
3000
2600-
2200-
1800-
1400-
1000-
600-
200-
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4000 6000 8000
Quantity of LCD TVs
S
10000
In response to lobbying by the skate board association, the government places a priceceiling at the price of $700 on skate boards. What effect will this have on the market forskate boards? Explain your answer.
. In response, to lobbying by the skate board association, the government places a priceceiling of $400 on skate boards. Use the information provided in Table 18.1, to plot thesupply and demand curve for skate boards.
use the image to answer the question
on
Consider the market for tablets depicted below (think iPad or Microsoft Surface). If a price ceiling is
adopted at $600, then there will be a shortage of
units.
P
$800
$600
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75 100 125
S₁
D₁
Chapter 5 Solutions
Microeconomics
Ch. 5 - Prob. 1RQCh. 5 - Prob. 2RQCh. 5 - Prob. 3RQCh. 5 - Prob. 4RQCh. 5 - Prob. 5RQCh. 5 - Prob. 6RQCh. 5 - Prob. 7RQCh. 5 - Prob. 8RQCh. 5 - Prob. 9RQCh. 5 - Prob. 10RQ
Ch. 5 - Prob. 11RQCh. 5 - Prob. 12RQCh. 5 - Prob. 13RQCh. 5 - Prob. 14RQCh. 5 - Prob. 15RQCh. 5 - Prob. 16RQCh. 5 - Prob. 1PACh. 5 - Prob. 2PACh. 5 - Prob. 3PACh. 5 - Prob. 4PACh. 5 - Prob. 5PACh. 5 - Prob. 6PACh. 5 - Prob. 7PACh. 5 - Prob. 8PACh. 5 - Prob. 10PACh. 5 - Prob. 11PACh. 5 - Prob. 12PACh. 5 - Prob. 13PACh. 5 - Prob. 14PACh. 5 - Prob. 15PACh. 5 - Prob. 16PACh. 5 - Prob. 17PACh. 5 - Prob. 18PACh. 5 - Prob. 19PACh. 5 - Prob. 20PACh. 5 - Prob. 21PACh. 5 - Prob. 22PACh. 5 - Prob. 23PACh. 5 - Prob. 24PACh. 5 - Prob. 25PA
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- 4. Calculating the price elasticity of supply Antonio is a retired teacher living in San Diego who works as a caddy to supplement their normal income. At an hourly wage rate of $25, they are willing to caddy 7 hours per week. Upping the wage to $30 per hour, they are willing to caddy 12 hours per week. Using the midpoint method, the elasticity of Antonio’s labor supply between the wages of $25 and $30 per hour is approximately , which means that Antonio’s supply of labor over this wage range is .arrow_forward11. Calculating the price elasticity of supply Carlos is a stay-at-home parent who lives in Chicago and teaches tennis lessons for extra cash. At a wage of $50 per hour, he is willing to teach 7 hours per week. At $65 per hour, he is willing to teach 10 hours per week. Using the midpoint method, the elasticity of Carlos's labor supply between the wages of $50 and $65 per hour is approximately that Carlos's supply of labor over this wage range is which meansarrow_forwardPrice of Gasoline P3 P₂ P₁ 0 9₂ 9₂ 52 D S₁ Price Ceiling Quantity of Gasoline Refer to the figure above. With a price ceiling present in this market, what will happen when the supply curve for gasoline shifts from S₁ to S₂? The market price will stay at P₁ due to the price ceiling. A shortage will occur at the price ceiling of P2. The price will increase to P3. A surplus will occur at the new market price of P₂.arrow_forward
- 1. Use the line tool Quota to draw a vertical line at a quantity of 2 units. Draw this line so the lower end point touches the horizontal axis (2,0) and the line intersects and extends beyond the demand curve. 2. Use the reference point tool B to identify the new price and quantity at coordinate (2,6) 3. Use the shading tool fill to shade in a triangle area at the points or vertices of (0,8)(2,6) and (0,6)arrow_forwardThe table shows the demand and supply schedules for on-campus housing. If the college puts a rent ceiling on rooms of $350 a month, rent is $7 and the number of rooms rented is 4. The on-campus housing market is inefficient Rent (dollars per month) 250 275 300 325 350 375 Quantity demanded 2,500 2,250 2,000 1,750 1,500 1,250 (rooms) Quantity supplied 2,000 2,000 2,000 2,000 2,000 2,000 Nextarrow_forwardThe table shows the demand and supply schedules for on-campus housing. If the college puts a rent ceiling on rooms of $750 a month, rent is $ and the number of rooms rented is. The on-campus housing market is Rent (dollars per month) 500 550 600 650 700 750 Quantity demande 2.500 2,250 2,000 1,750 1,500 1,250 (rooms) Quantity supplied 2,000 2,000 2,000 2,000 2,000 2,000arrow_forward
- The following figure illustrates the demand and supply curves for a good. Price (5) 888 60 40 0 5 10 20 30 Supply Demand Quantity (unit) Refer to the figure above. Which of the following is likely to happen if a price control of $80 is imposed in the market? O There will be a shortage of 25 units in the market. O There will be a surplus of 10 units in the market. O There will be a surplus of 25 units in the market. O There will be a shortage of 10 units in the market.arrow_forwardOnly typed answerarrow_forwardWhat effect will each of the following have on the supply of auto tires? The granting of a 50-cent-per-unit subsidy for each auto tire produced.arrow_forward
- Price $2.00 $2.50 $3.00 $3.50 O surplus; increase surplus; decrease Quantity Demanded O shortage; increase O shortage; decrease 3,300 2,800 2,300 1,800 Quantity Supplied Using the table above, if the price is $2.50 the market is experiencing a pressure for the price to 300 800 1,300 1,800 and there isarrow_forwardUse the data and graph below to complete the following. Plot the data points onto the graph. Use all necessary labels. Suppose Miley Cyrus only charges $60 per ticket. Draw this price ceiling on the graph What is the equilibrium price and quantity in this market? Price:# # $# Quantity: If the price Miley Cyrus charges for each ticket is below equilibrium, why doesn’t she raise her prices?arrow_forwardA recent study found that the demand and supply schedules for financial calculators are as follows: Price/calculators Quantity Demanded Quantity Supplied 20 160 40 40 140 60 60 120 80 80 100 100 100 80 120 120 100 Co an Coll 80 60 40 D. 20 40 60 80 100 120 140 160 a) Determine: Price of Equilibrium_ and Quantity of Equilibrium b) Determine the effect of $60 Price Ceiling. Is it binding? Why? Will it cause Shortage or Surplus? And by how much? c) Determine the effect of $120 Price Floor. Is it binding? Why? Will it cause Shortage or Surplus? And by how much?arrow_forward
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