MICROECONOMICS-ACCESS CARD <CUSTOM>
11th Edition
ISBN: 9781266285097
Author: Colander
Publisher: MCG CUSTOM
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
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?
The 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?
I need the answer as soon as possible
Chapter 7 Solutions
MICROECONOMICS-ACCESS CARD <CUSTOM>
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
- What will happen to demand for normal goods with the increase in populationarrow_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_forwardWhat 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_forward
- Consider 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_forwardWhich of the following will definitely cause an increase in the equilibrium price? An increase in both demand and supply A decrease in both demand and supply An increase in demand combined with a decrease in supply A decrease in demand combined with an increase in supply Any of the above, depending on the circumstances Which of the following will definitely result in a decrease in the equilibrium price of a good? An increase in both demand and supply. A decrease in both demand and supply. An increase in demand together with a decrease in supply. A decrease in demand together with an increase in supply. A decrease in supply only. Consider the market for South African biltong. Assuming everything else remains unchanged, the equilibrium price of biltong will decrease if There is a shortage of biltong. The price of beer, a complement, increases. The supply of biltong decreases. The price of peanuts, a substitute, increases. There is an animal disease that affects the supply of biltong…arrow_forward
- Why would a shift in supply or demand happen as a result in a market equilibrium with higher prices but lower sales volume?arrow_forwardConsider the following equations for supply and demand: At a price of $75 what is the quantity demanded? Record your unitless answer to two decimal places Your Answer: P=135-5Q P=5+4Q Answerarrow_forwardhow to find equilibrium price and quantity in given question Demand:P=12-0.5qd Supply:=0.1qsarrow_forward
- The demand and supply curves for beach volleyballs are given by: D = 80-4P S = -2+2P The current price is 19. How much is the excess supply or demand? Write a positive number if you find an excess supply, and write a negative number if you find an excess demand. (round your answer to one decimal place)arrow_forwardAnswer true or false, an increase in supply is represented by a movement up the supply curve.arrow_forwardWhich of the following best describes the sequences of events that lead to a price increase and quantity decrease when supply decreases? When supply decreases, there is a surplus because Qs > Qd at the old price. Price will adjust upward until the market clears at a new lower quantity. When supply decreases, there is a shortage because Qs < Qd at the old price. Price will adjust upward until the market clears at a new lower quantity. When supply decreases, there is a shortage because Qs > Qd at the old price. Price will adjust upward until the market clears at a new lower quantity. When supply decreases, there is a surplus because Qs < Qd at the old price. Price will adjust upward until the market clears at a new lower quantity.arrow_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