Microeconomics
11th Edition
ISBN: 9781260507041
Author: Colander, David
Publisher: MCGRAW-HILL HIGHER EDUCATION
expand_more
expand_more
format_list_bulleted
Question
Chapter 7.1, Problem 9Q
To determine
Explain what happens to shortage, if the supply is perfectly inelastic.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solution
Students have asked these similar questions
If supply is inelastic, will shifts in demand have a larger effect on equilibrium price or on quantity?
Pharmaceutical drugs have an inelastic demand and
computers have an elastic demand. suppose that
technological advance doubles the supply of both
product. what happens to the equilibrium price and
quantity in each market?
Demand p= 100-0.00006x
Supply p= 90+0.00004x
Find the equilibrium price and quantity ?
Chapter 7 Solutions
Microeconomics
Ch. 7.1 - Prob. 1QCh. 7.1 - Prob. 2QCh. 7.1 - Prob. 3QCh. 7.1 - Prob. 4QCh. 7.1 - Prob. 5QCh. 7.1 - Prob. 6QCh. 7.1 - Prob. 7QCh. 7.1 - Prob. 8QCh. 7.1 - Prob. 9QCh. 7.1 - Prob. 10Q
Ch. 7 - Prob. 1QECh. 7 - Prob. 2QECh. 7 - How is elasticity related to the revenue from a...Ch. 7 - Prob. 4QECh. 7 - Prob. 5QECh. 7 - Prob. 6QECh. 7 - Prob. 7QECh. 7 - Prob. 8QECh. 7 - Prob. 9QECh. 7 - Prob. 10QECh. 7 - Prob. 11QECh. 7 - Prob. 12QECh. 7 - Prob. 13QECh. 7 - Prob. 14QECh. 7 - Prob. 15QECh. 7 - Prob. 16QECh. 7 - Prob. 17QECh. 7 - Prob. 18QECh. 7 - Prob. 19QECh. 7 - Prob. 20QECh. 7 - Prob. 21QECh. 7 - Prob. 22QECh. 7 - Prob. 1QAPCh. 7 - Prob. 2QAPCh. 7 - Prob. 3QAPCh. 7 - Prob. 4QAPCh. 7 - Prob. 5QAPCh. 7 - Prob. 1IPCh. 7 - Prob. 2IPCh. 7 - Prob. 3IPCh. 7 - Prob. 4IPCh. 7 - Prob. 5IPCh. 7 - Prob. 6IP
Knowledge Booster
Similar questions
- A shortage exists in a market when:arrow_forwardThe rent control agency of New York City has found that aggregate demand is Q = 160 - 8P. Quantity is measured in tens of thousands of apartments. Price, the average monthly rent, is measured in hundreds of dollars. The aggregate supply is Q = 70 + 7P. a) What is an equilibrium price of rental apartment? b) Suppose the agency sets a maximum monthly rent to $ 300, are there excess demand or excess supply of apartments? If so, by what amount? Please show your work with an explanation. Suppose the agency bows to the wishes of the board and sets a rental of $900 per month on all apartments to allow landlords a "fair" rate of return. If 50% of any long - run increases in apartment offerings come from new construction, how many apartments are constructed?arrow_forwardHow will a simultaneous increase in the price of a substitute good and an improvement in production technology affect market demand and/or supply, equilibrium price and equilibrium quantity in a competitive market?arrow_forward
- I need the answer as soon as possiblearrow_forwardWhat will happen to demand for normal goods with the increase in populationarrow_forwardThe figure below represents the market for Gasoline, where initially the equilibrium price was $5.60. The picture shows the effect of a $1.50 tax on gasoline. Using the information from the figure, what is the price elasticity of supply(Using the Midpoint method) when moving from equilibrium to the new supply after the tax?(round your answer to 2 decimal places)arrow_forward
- demand equations QD = 3550 - 20P supply equations QS = 1800 + 30P what is equilibrium price ?arrow_forwardCould you explain the difference between a suprlus and shortage in terms of supply and demand?arrow_forwardDemand for salt is nearly perfectly inelastic. If the government imposes a tax of 10% on salt what shall be the effect on quantity demanded of salt? Why?arrow_forward
- What is the term used to describe the situation where the price of a good or service increases as its quantity demanded exceeds its quantity supplied? a) Equilibrium b) Surplus c) Shortage d) Elasticityarrow_forwardConsider the special case of perfectly inelastic Demand. Describe exactly what this means and what the Demand Curve graph would look like. What would happen to equilibrium price and quantity if the Supply Curve shifted? What could cause perfectly inelastic Demand? Give an example or two of a product with almost perfectly inelastic demand. Do you think market price is a good allocative mechanism in such a situation?arrow_forwardIf we observe the price of a good or service rising, then the most likely cause is an increase in demand a temporary surplus a small increase in demand followed by a huge increase in supply an increase in supplyarrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
Economics Today and Tomorrow, Student EditionEconomicsISBN:9780078747663Author:McGraw-HillPublisher:Glencoe/McGraw-Hill School Pub Co
Economics Today and Tomorrow, Student Edition
Economics
ISBN:9780078747663
Author:McGraw-Hill
Publisher:Glencoe/McGraw-Hill School Pub Co