Microeconomics
13th Edition
ISBN: 9781337617406
Author: Roger A. Arnold
Publisher: Cengage Learning
expand_more
expand_more
format_list_bulleted
Question
Chapter 5.7, Problem 2ST
To determine
The
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solutionStudents have asked these similar questions
Suppose that you are a staff economist with an economic consulting firm. The operator of a local harbour has commissioned your firm to do a market analysis of the demand for berths (parking spaces) for boats. Your firm finds that the price elasticity of demand for berths is –0.8.
If the price of a berth in the area decreases by 6%, how will the quantity of berths that people demand change? The number of berths demanded will:
Increase by 0.8%
Decrease by 7.5%
Increase by 6%
Increase by 4.8%
The quantity demanded of Fitbit devices is 8,025 units when the price is $260. At a
unit price of $200, demand increases to 10,000 units. The manufacturer will not market any
of the device at a price of $100 or less. However for each $50 increase in price above $100,
the manufacturer will market an additional 1,000 units. Assume that both the supply equation
and the demand equation are linear.
a) Find the supply equation.
b) Find the demand equation.
c) Find the equilibrium quantity.
d) Find the equilibrium price.
Consider the demand for shrimp shown in Figure 2. Suppose the current demand for shrimp is D (in black), the current price of a pound of shrimp is $10, and the current quantity demand for shrimp is 200K. Which of the following correctly describes a decrease in the demand for shrimp, assuming the price of a pound of shrimp remains at $10?
A) The demand curve for shrimp shifts right from D (black) to D' (blue), and the quantity demand for shrimp decreases from 200K pounds to 150K pounds.
B) The demand curve for shrimp shifts left from D (black) to D'' (red), and the quantity demand for shrimp decreases from 200K pounds to 150K pounds.
C) The demand curve for shrimp shifts right from D (black) to D' (blue), and the quantity demand for shrimp increases from 200K pounds to 270K pounds.
D) The demand curve for shrimp shifts left from D (black) to D'' (red), and the quantity demand for shrimp increases from 200K…
Chapter 5 Solutions
Microeconomics
Ch. 5.1 - Prob. 1STCh. 5.1 - Prob. 2STCh. 5.2 - Prob. 1STCh. 5.2 - Prob. 2STCh. 5.3 - Suppose college students are given two options....Ch. 5.3 - Prob. 2STCh. 5.4 - Prob. 1STCh. 5.4 - Prob. 2STCh. 5.5 - Prob. 1STCh. 5.5 - Prob. 2ST
Ch. 5.6 - Give an example to illustrate that someone may pay...Ch. 5.6 - Prob. 2STCh. 5.7 - Prob. 1STCh. 5.7 - Prob. 2STCh. 5.8 - Prob. 1STCh. 5.8 - Prob. 2STCh. 5.9 - Prob. 1STCh. 5.9 - Prob. 2STCh. 5.10 - Prob. 1STCh. 5.10 - Prob. 2STCh. 5.11 - Prob. 1STCh. 5.11 - Prob. 2STCh. 5.12 - Prob. 1STCh. 5.12 - Prob. 2STCh. 5 - Prob. 1QPCh. 5 - Prob. 2QPCh. 5 - Prob. 3QPCh. 5 - Prob. 4QPCh. 5 - Prob. 5QPCh. 5 - Prob. 6QPCh. 5 - Prob. 7QPCh. 5 - Prob. 8QPCh. 5 - Prob. 9QPCh. 5 - Prob. 10QPCh. 5 - Prob. 11QPCh. 5 - Prob. 12QPCh. 5 - Prob. 13QPCh. 5 - Prob. 14QPCh. 5 - Prob. 15QPCh. 5 - Prob. 16QPCh. 5 - Prob. 1WNGCh. 5 - Prob. 2WNGCh. 5 - Prob. 3WNGCh. 5 - Prob. 4WNGCh. 5 - Prob. 5WNGCh. 5 - Prob. 6WNG
Knowledge Booster
Similar questions
- Suppose products A and B have demand and supply equations that are related to each other. If q Subscript Upper AqA and q Subscript Upper BqB are the quantities produced and sold of A and B, respectively, and p Subscript Upper ApA and p Subscript Upper BpB are their respective prices, the table below shows the demand equations and the supply equations. Eliminate q Subscript Upper AqA and q Subscript Upper BqB to get the equilibrium prices. demand equations supply equations q Subscript Upper AqA equals=33minus−p Subscript Upper ApAplus+p Subscript Upper BpB q Subscript Upper AqA equals=minus−77plus+66p Subscript Upper ApAminus−22p Subscript Upper BpB q Subscript Upper BqB equals=2222plus+p Subscript Upper ApAminus−p Subscript Upper BpB q Subscript Upper BqB equals=minus−33minus−22p Subscript Upper ApAplus+66p Subscript Upper BpB Question content area bottom Part 1 The prices are p Subscript Upper ApAequals=$ enter your response…arrow_forwardYour research department estimates that the supply function for high definition televisions (HDTVs) is given by Qxs = 2,000 + 3 Px − 4 Pt − Pw where Px is the price of HDTVs, Pt represents the price of a tablet, and Pw is the price of an input used to make HDTVs. Suppose HDTVs are sold for $400 per unit, tablets are sold for $250 per unit, and the price of an input is $1,400. How many HDTVs are produced?arrow_forwardConsider the demand for shrimp shown in Figure 2. Suppose the current demand for shrimp is D (in black), the current price of a pound of shrimp is $10, and the current quantity demand of shrimp is 200K. Which of the following correctly describes an increase in the demand for shrimp, assuming the price of a pound of shrimp remains at $10? A) The demand curve for shrimp shifts right from D to D' (blue), and the quantity demand for shrimp decreases from 200K pounds to 150K pounds. B) The demand curve for shrimp shifts left from D to D'' (red), and the quantity demand for shrimp decreases from 200K pounds to 150K pounds. C) The demand curve for shrimp shifts right from D to D' (blue), and the quantity demand for shrimp increases from 200K pounds to 270K pounds. D) The demand curve for shrimp shifts left from D to D'' (red), and the quantity demand for shrimp increases from 200K pounds to 270K pounds.arrow_forward
- The price of a widget decreases from $1 to $0.60, and in response to the price change the quantity demanded increases from 7 to 9 units. Therefore, demand for widgets in this price range: (Use the midpoint formula and write your answer in absolute terms, meaning as a positive number)arrow_forwardA certain manufacturer has determined that the weekly demand and supply functions for their product are given by the equations: supply: p=-2x² +80 demand: p = 15x+30 where z represents the quantity demanded in units of a thousand and p is the unit price in dollars. Find the market equilibrium (equilibrium price and equilibrium quantity).arrow_forwardCalculate total quantity demanded (Qd) of Stouffers frozen meal that would be demanded given demand function of Stouffers' microwavable frozen meals as follows: Where Qd = 3100 -5P + 3Px + 3M+51 where P (price of Stouffers) =$10, Px (price of Lean Cuisine), M (number of microwaves) = 500, and I (Income)%=$5000arrow_forward
- An economist has estimated that the demand function for cars is approximately D = −400P + 4I where I is the mean household income. The Supply of cars is estimated to be S = 2p (a) What is the equilibrium price of cars (it will be a function of I)?(b) How does the equilibrium price of cars change when I changes?arrow_forward#10: The quantity demanded x (in units of a hundred) of the Mikado miniature cameras per week is related to the unit price p (in dollars) by p= -0.2x² + 80 and the quantity x (in units of a hundred) that the supplier is willing to make available in the market is related to the unit price p (in dollars) by p = 0.1x² + x + 40. If the market is set at the equilibrium price, find the consumers' surplus and the producers' surplus.arrow_forwardBelow are the supply and demand schedules for a video game. Price $200 $180 $160 $140 $120 $110 $100 $90 $80 $60 Quantity Demanded 10 15 20 25 30 35 40 45 50 55 Quantity Supplied 100 90 80 70 60 50 40 30 20 10 a) What is the equilibrium price? $ b) What is the equilibrium quantity? Assume that this video game receives a poor rating and consumers decide to purchase 45 less at each price. c) What is the new equilibrium price? $ d) What is the new equilibrium quantity? 100 40 units unitsarrow_forward
- The price-demand equation for a particular flashlight is given by p = 118 - 0.002x, where x is the number of flashlights demanded when the price is p dollars each. The flashlight manufacturers will produce no flashlights if the price is $79 or less, and they will market 5,500 flashlights when the price is $101 per flashlight. (Assume the price-supply equation is linear.) (a) Find the consumers' surplus for this commodity. $ (b) Find the producers' surplus for this commodity. $arrow_forwardExplain why you think that the demand of one product may diminish as prices are increasedarrow_forwardBased on the estimates of Ghose and Han (2014), the demand function for mobile applications at Apple’s App Store is QA = 1.4p-2 and the demand function at Google Play is 1.4p-3.7, where the quantity is in millions of apps. What is the total demand function for apps? If the price for an app is $1, what is the equilibrium quantity demanded by Apple customers, Google customers, and all customers? (Hint: Look at the Application “Aggregating Corn Demand Curves.”)arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
- Economics (MindTap Course List)EconomicsISBN:9781337617383Author:Roger A. ArnoldPublisher:Cengage Learning
Economics (MindTap Course List)
Economics
ISBN:9781337617383
Author:Roger A. Arnold
Publisher:Cengage Learning