Microeconomics
11th Edition
ISBN: 9781260507140
Author: David C. Colander
Publisher: McGraw Hill Education
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Question
Chapter 5.A, Problem 2QE
a)
To determine
Construct new supply and curves with the given changes.
b)
To determine
The
c)
To determine
Mathematical expression of equilibrium price and quantity.
d)
To determine
The effect of government regulation on the market for milk.
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For each of the following events described, indicate the effects to the demand and to the supply. Use the
demand and supply graphs provided below to match these events. Then determine what happens to the
market equilibrium price and equilibrium quantity.
Scenario: Consider the market for potato, if potatoes are considered as
inferior good and income rises at the same time that low temperature kills
some potato buds.
Change in Demand *
Increase
Decrease
Did not Change
Indeterminate
Change in Supply *
Increase
Decrease
Did not Change
Indeterminate
Graph *
So
So
Do
Do
A
B
O A
O B
So
So
S1
Do
Do
D
D
So
So
Do
F
O E
F
S.
So
So
D:
Do
Do
G
G
H
So
So
D
Do
Do
D1
J
J
So
Do
D1
-Q
K
K
Change in market equilibrium price.
Increase
Decrease
Did not Change
Indeterminate
Change in market equilibrium quantity.
Increase
Decrease
Did not Change
Indeterminate
Determine how the following affects the market for apples in the United States. While not required, you may wish to draw the supply and demand diagram for apples to assist in determining the impact on quantity and price.
A new study shows significant health benefits from eating apples.
Select one:
a.Quantity increases and price increases
b.Quantity increases and price decreases
c.Quantity decreases and price increases
d.Quantity decreases and price decreases
Trade barriers restricting apples imports from Canada are eliminated.
Select one:
a.Quantity increases and price increases
b.Quantity increases and price decreases
c.Quantity decreases and price increases
d.Quantity decreases and price decreases
Genetically modified apples trees that allow for much greater output per tree without greater costs are introduced into the market.
Select one:
a.Quantity increases and price increases
b.Quantity increases and price decreases
c.Quantity decreases and price increases
d.Quantity…
Draw a demand and supply graph for each of the following questions. For each question, start by drawing a
correctly labeled graph of the market for cookies in equilibrium. Your starting graphs should each have
correctly labeled axes and demand and supply curves. Label the equilibrium price and quantity as p1 and p2
on the axes of each of the starting graphs.
1. Show the effect on the equilibrium price and quantity in the market for cookies if the price of
milk increases. Determine which curve is affected by the change in the price of milk and
whether it increases or decreases. On your graph, draw a new curve indicating the shift-
either to the right or the left. Label the new equilibrium price and quantity as p2 and q2.
2. Show the effect on the equilibrium price and quantity in the market for cookies if the price of
flour decreases. Determine which curve is affected by the change in the price of flour and
whether it increases or decreases. On your graph, draw a new curve indicating…
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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