Microeconomics
11th Edition
ISBN: 9781260507140
Author: David C. Colander
Publisher: McGraw Hill Education
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Question
Chapter 5, Problem 5QE
(a)
To determine
Impact of decreased supply and increased
(b)
To determine
Impact of increase in supply and constant demand.
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Much of the demand for U.S. agricultural output has come from other countries. In 1998, the total demand for wheat was Q = 3244 - 283P. Of this, total domestic demand was QD = 1700 - 107P, and domestic supply was QS =1944 + 207P. Suppose the export demand for wheat falls by 40%. a. U.S. farmers are concerned about this drop in export demand. What happens to the free-market price of wheat in the United States? Do farmers have much reason to worry? b. Now suppose the U.S. government wants to buy enough wheat to raise the price to $3.50 per bushel. With the drop in export demand, how much wheat would the government have to buy? How much would this cost the government?
With the recent war between Russia and Ukraine, the production and thus exports of wheat have declined (which increased the price of such exports), because Ukraine is the major producer and exporter of the same. As a result, what can we expect in the market for rice, used by many as a staple instead of wheat?
a) The equilibrium price will increase, the equilibrium quantity will decrease
b) The equilibrium price will increase, the equilibrium quantity will increase
c) The equilibrium price will decrease, the equilibrium quantity will increase
d) The equilibrium price will decrease, the equilibrium quantity will decrease
An increase in the population of a country will cause the demand curve to shift outward and supply to increase.
true or false
Chapter 5 Solutions
Microeconomics
Ch. 5.1 - Prob. 1QCh. 5.1 - Prob. 2QCh. 5.1 - Prob. 3QCh. 5.1 - Prob. 4QCh. 5.1 - Prob. 5QCh. 5.1 - Prob. 6QCh. 5.1 - Prob. 7QCh. 5.1 - Prob. 8QCh. 5.1 - Prob. 9QCh. 5.1 - Prob. 10Q
Ch. 5.A - Prob. 1QECh. 5.A - Prob. 2QECh. 5.A - Prob. 3QECh. 5.A - Prob. 4QECh. 5.A - Prob. 5QECh. 5.A - Prob. 6QECh. 5.A - Prob. 7QECh. 5.A - Prob. 8QECh. 5.A - Prob. 9QECh. 5 - Prob. 1QECh. 5 - Prob. 2QECh. 5 - Prob. 3QECh. 5 - Prob. 4QECh. 5 - Prob. 5QECh. 5 - Prob. 6QECh. 5 - Prob. 7QECh. 5 - Prob. 8QECh. 5 - Prob. 9QECh. 5 - Prob. 10QECh. 5 - Prob. 11QECh. 5 - Prob. 12QECh. 5 - Prob. 13QECh. 5 - Prob. 14QECh. 5 - Prob. 15QECh. 5 - Prob. 16QECh. 5 - Prob. 17QECh. 5 - Prob. 1QAPCh. 5 - Prob. 2QAPCh. 5 - Prob. 3QAPCh. 5 - Prob. 4QAPCh. 5 - Prob. 5QAPCh. 5 - Prob. 1IPCh. 5 - Prob. 2IPCh. 5 - Prob. 3IPCh. 5 - Prob. 4IPCh. 5 - Prob. 5IPCh. 5 - Prob. 6IPCh. 5 - Prob. 7IPCh. 5 - Prob. 8IPCh. 5 - Prob. 9IPCh. 5 - Prob. 10IPCh. 5 - Prob. 11IPCh. 5 - Prob. 12IPCh. 5 - Prob. 13IPCh. 5 - Prob. 14IP
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- Much of the demand for U.S. agricultural output has come from other countries. In 1998, the total demand for wheat was Q = 3,244 - 283P. Of this, total domestic demand was Qn = 1700 - 107P, and domestic supply was Qs = 1,944 + 207P Suppose the export demand for wheat falls by 50 percent. U.S. farmers are concerned about this drop in export demand. What happens to the free-market price of wheat in the United States? The free-market price of wheat in the United States after the drop in export demand is $1.31. (Enter your response rounded to two decimal places.) Do famers have much reason to worry? O A. Farmers have reason to worry because the equilibrium quantity decreases from 3,492.55 million bushels to 2,215.17 million bushels. O B. Farmers have reason to worry because the market price for wheat decreases from $3.65 per bushel to $1.31 per bushel. OC. Farmers have no reason to worry because the equilibrium quantity decreases from 2,592.55 million bushels to 2,215.17 million bushels. O…arrow_forwardHow has the demand for the smart phones affected the demand and supply of digital cameras? Are digital cameras likely to face the same fate as the desktops for laptops? Discuss in detail the how mega players like Sony and Samsung have cut their Digital camera production and supply to meet the rising demand of smart phones in the world market. (100-150 words)arrow_forwardI'm studying for my final at the end of the week and haven't been able to answer this question and understand it. I'd greatly appreciate some help.arrow_forward
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