Bundle: Principles of Economics, Loose-leaf Version, 8th + LMS Integrated MindTap Economics, 2 terms (12 months) Printed Access Card
8th Edition
ISBN: 9781337607735
Author: N. Gregory Mankiw
Publisher: Cengage Learning
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Question
Chapter 7, Problem 5PA
Subpart (a):
To determine
The supply schedule of the water bottles.
Subpart (b):
To determine
The supply schedule of the water bottles and producer surplus .
Subpart (c):
To determine
The supply schedule of the water bottles and producer surplus.
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Chapter 7 Solutions
Bundle: Principles of Economics, Loose-leaf Version, 8th + LMS Integrated MindTap Economics, 2 terms (12 months) Printed Access Card
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- 1. Adam owns a water pump. Because pumping large amounts of water is harder than pumping small amounts, the cost of producing a bottle of water rises as he pumps more. Here is the cost he incurs to produce each bottle of water. Cost of first bottle $1 Cost of Second bottle $3 Cost of Third bottle $5 Cost of fourth bottle $7 a. From this information, derive Adam's supply schedule. Graph his supply curve for bottled water. b. If the price of a bottle is $4, how many bottles does Adam's produce and sell? How much producer surplus does Adam's get from these sales? Show Adam's producer surplus in your graph. c. If the price rises $6, how does quantity supplied change? How does Adam's producer surplus change? Show these changes in your graph.arrow_forward12. The variety of supply curves The following graph displays four supply curves (HH, II, JJ, and KK) that intersect at point A. PRICE (Dollars per unit) 20 18 16 14 12 10 4 2 0 0 H 2 4 J 6 K A 0+ +w E 8 10 12 QUANTITY (Units) K 14 16 J H 18 Đ 20arrow_forwardWhich of the following shifts the supply curve of broccoli? Select one: a. a newly discovered link between broccoli consumption and tooth decay O b. the destruction of much of this year's broccoli crop by hurricanes O c. a newly discovered increase in the nutritional value of broccoli O d. an increase in incomearrow_forward
- Q. 1arrow_forwardIn the figure to the right, the current position of the supply curve is Upper S 1S1, and the price of a wireless earbud is $4. If the cost of inputs that suppliers use to produce wireless earbuds decreasesdecreases, which way will the supply curve shift? Will the quantity of wireless earbuds supplied increase or decrease? Part 2 1.) Using the line drawing tool, draw the new supply curve that reflects a decreasea decrease in the cost of inputs used to produce wireless earbuds. Label this line 'Upper S 2S2.' 2.) Using the point drawing tool, indicate the point on the new supply curve, Upper S 2S2, that corresponds to the quantity supplied when the price is $4 per wireless earbud. Label this point 'Upper A 2A2.' Carefully follow the instructions above, and only draw the required objects.arrow_forwardI need help with this.arrow_forward
- M10arrow_forwardWhen economists say the quantity supplied of a product has decreased, they mean the supply curve has shifted to the right. price of the product has risen, and consequently, suppliers are producing more of it. O price of the product has fallen, and consequently, suppliers are producing less of it.arrow_forward9. The variety of supply curves The following graph displays four supply curves (LL, MM, NN, and OO) that intersect at point V. PRICE (Dollars per unit) 200 180 160 140 120 100 80 60 40 20 0 H 0 M 20 40 60 W N X + +Y N >++N 80 100 120 140 160 QUANTITY (Units) O M 180 + 200 ?arrow_forward
- Law of supply states that as the price of a good O increases, suppliers want to supply less of that item O decreases, suppliers want to supply less of that item O increases, the quantity of people who want to buy it decreases O decreases, suppliers want to supply more of that itemarrow_forwardnot use ai pleasearrow_forwardIf a new sushi restaurant opens, then The market supply curve for sushi will shift to the right. O The market supply curve for sushi will shift to the left. O There will be a movement up along the market supply curve for sushi. O There will be a movement down along the market supply curve for sushi.arrow_forward
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