Micro Economics For Today
10th Edition
ISBN: 9781337613064
Author: Tucker, Irvin B.
Publisher: Cengage,
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Chapter 8.5, Problem 1YTE
To determine
Short-run impact of an increase in demand.
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draw a short run firm and industry competitive equilibriums for a perfectly competitive gator-farming industry before the number of alligator farms in florida doubled. for simplicity, assume that the gator farm is earning zero economic profit. now show the short run effect of an increase in demand for alligators.
Assume that the gold-mining industry is perfectly competitive. a) Illustrate a long-run equilibrium using diagrams for the gold market and for a representative gold mine. b) Suppose that an increase in jewelry demand induces a surge in the demand for gold. Using your diagrams, show what happens in the short run to the gold market and to each existing gold mine. c) If the demand for gold remains high, what would happen to the price over time? Specifically, would the new long-run equilibrium price be above, below, or equal to the short-run equilibrium price in part b)?
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Answer completely.
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There are 80 perfectly competitive firms producing love letters, q. Each firm's cost function is C(q) = 4 + 4q².
Market demand for love letters is Qp 240 - 5P. Use this information to answer questions #20 and #21.
=
20. What is the short-run market equilibrium price for love letters?
a. P = $8
b. P = $10
c. P = $16
d.
P = $18.50
e. P = $24
21. What will happen to the number of firms selling love letters in the long-run?
a. The number of firms in this market will decrease.
b. The number of firms in this market will increase.
C. The number of firms in this market will remain the same, but the market price will increase.
d. The number of firms in this market will remain the same, but the market price will decrease.
e. It is not possible to say what will happen to the number of firms without more information.
Chapter 8 Solutions
Micro Economics For Today
Ch. 8.5 - Prob. 1YTECh. 8.5 - Prob. 2YTECh. 8 - Prob. 1SQPCh. 8 - Prob. 2SQPCh. 8 - Prob. 3SQPCh. 8 - Prob. 4SQPCh. 8 - Prob. 5SQPCh. 8 - Prob. 6SQPCh. 8 - Prob. 7SQPCh. 8 - Prob. 8SQP
Ch. 8 - Prob. 9SQPCh. 8 - Prob. 10SQPCh. 8 - Prob. 11SQPCh. 8 - Prob. 12SQPCh. 8 - Prob. 1SQCh. 8 - Prob. 2SQCh. 8 - Prob. 3SQCh. 8 - Prob. 4SQCh. 8 - Prob. 5SQCh. 8 - Prob. 6SQCh. 8 - Prob. 7SQCh. 8 - Prob. 8SQCh. 8 - Prob. 9SQCh. 8 - Prob. 10SQCh. 8 - Prob. 11SQCh. 8 - Prob. 12SQCh. 8 - Prob. 13SQCh. 8 - Prob. 14SQCh. 8 - Prob. 15SQCh. 8 - Prob. 16SQCh. 8 - Prob. 17SQCh. 8 - Prob. 18SQCh. 8 - Prob. 19SQCh. 8 - Prob. 20SQ
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