Microeconomics: Private and Public Choice (MindTap Course List)
16th Edition
ISBN: 9781305506893
Author: James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher: Cengage Learning
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Question
Chapter 9, Problem 8CQ
To determine
Short run and long run supply curves of a perfect competitive firm.
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Students have asked these similar questions
Identify and explain the various factors that can cause a shift in the supply curve for a specific product or industry. Discuss the short-term and long-term implications of these shifts on market equilibrium and pricing.
Suppose cowboy boots and leather vests are complements. If the price of
cowboy boots increases significantly, what should we expect to happen to
the supply curve for leather vests in the short run?
We expect the supply curve to shift right.
We shouldn't expect anything in particular to happen to the supply curve.
We expect the supply curve to shift left.
A horizontal supply curve with no slope is considered?
Chapter 9 Solutions
Microeconomics: Private and Public Choice (MindTap Course List)
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Similar questions
- A vertical demand curve or supply curve would be called:arrow_forwardExplain the law of supply. Why does the supply curve slope upward? How is the market supply curve derived from the supply curves of individual producers?arrow_forwardWhen looking at Say's law, which of the following is true? The focus is on the short run. Every sale represents income. It is demand driven. Supply creates its own supply.arrow_forward
- when there is an increase in the cost of producing a good or service this will cause the supply curve to shift up and to the left true or falsearrow_forwardA chain of electronic stores sells hand-held color televisions. The weekly demand and supply models are given below. N is the number of televisions sold or supplied per week in the respective model and p is the price of the television. a. How many hand-held televisions can be sold and supplied at $144 per television? b. Find the price at which supply and demand are equal. At this price, how many televisions can be supplied and sold each week? N = −7p+1134 Demand model. N = 3.5p Supply model.arrow_forwardThe introduction of new technology can affect the amount of supply a business will produce. Will it cause the supply curve to increase or decrease?arrow_forward
- Suppose that two supply curves pass through the same point. One is steep, and the other is flat. Which of the following statements is correct?arrow_forwardWhat effect will each of the following have on the supply of auto tires? A decline in the price of the large tires used for semitrucks and earth-hauling rigs (with no change in the price of auto tires).arrow_forwardThe demand and the supply of timber for construction in Australia are given by Q=100 - 20P Qs = 5P We assume the market is perfectly competitive. 2.1. Compute the equilibrium price PCE and quantity QCE.2.2. Plot on a graph: the demand curve, the supply curve, and the equilibrium price and quantity.2.3: Calculate the price elasticity of demand and price elasticity of supply at the equilibrium price and quantity.2.4. Calculate the producer surplus and consumer surplus in the equilibrium and illustrate them in a graph.2.5. Suppose there are many construction companies collapsed (and left the market), use a demand and supply graph to explain how the collapse affects the equilibrium price and quantity.2.6. Consider the setup in 2.1-2.4, and suppose there is a strike of loggers, which change the supply toQs = 4P. Calculate the new equilibrium quantity and use a demand and supply graph to explain how the strike affects the equilibrium price and quantity. 2.7. Calculate the change in the…arrow_forward
- Assume that the market for beef is perfectly competitive and in equilibrium. Which of the following would most likely result in an increase in both the equilibrium price and the equilibrium quantity of beef? A An increase in the supply of chicken, a substitute good A decrease in consumers' income, assuming that beef is a normal good An increase in the supply of potatoes, a complementary good An increase in the price of corn, an input in the production of beef (E An announcement by the medical community that consumption of beef increases the risk of heart diseasearrow_forwardConsider any market where the Supply Curve is given by O = 25 + 0.2P and the Demand curve is given by 500-0.3P Ask: a) Calculate prices and equilibrium quantity of this market b) Consider that this market operates with prices equal to 900.00. What's happening? c) Regarding the result found in (b), consider the impacts of a change in the supply curve to O = 50+0.2P. Discuss the results and plot the fit graphs on the supply curves.arrow_forwardDoes a change in producer`s technology lead to a movement along the supply curve or a shift in the supply curve? Does a change in price lead to a movement along the supply curve or a shift in the supply curve?arrow_forward
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