4. It is said that the market forces of supply and demand, which determine the equilibrim price and quantity allocated economic recources efficiently. Is this "fair" to those that at the market price cannot afford to purchase the product?

4. It is said that the market forces of supply and demand, which determine the equilibrim price and quantity allocated economic recources efficiently. Is this "fair" to those that at the market price cannot afford to purchase the product?

Essentials of Economics (MindTap Course List)

8th Edition

ISBN:9781337091992

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter5: Elastic And Its Application

Section: Chapter Questions

Problem 4QR

See similar textbooks

Related questions

Q: 4. Ben owns a water pump. Because pumping large amounts of water is harder than pumping small…

A: The supply curve is a graphic representation of the correlation between the cost of a good or…

Q: 8. The supply of a good refers to A. O Stock available for sale B. O Total stock in the warehouse C.…

A: Supply is represented on the supply schedule which shows various quantities of a commodity that…

Q: Optimum Combination Analysis: Compute and analyse using the six steps. 1. Given: Price of Good A .50…

A: In the question above, it is given : TU = Total Utility f= is a function of MU = Marginal Utility O…

Q: .Explain, four major socio-economic trends that are impacting the food service-industry today?

A: Answer - Four major socio-economic trends that impacting the food service-industry today are - 1.…

Q: An increase in the price of Wood will shift the supply of furniture to the left or inwards. Select…

A: Supply is the amount of a commodity that its producers are willing and capable to offer to the…

Q: 5. Demand and Suooly - Begin each question with a graph showing the following: the market clears at…

A: Answer- There would be a surplus of corn in the market and the equilibrium price will decrease.

Q: 1. Markets and competition In a perfectly competitive market, all producers sell goods or services.…

A: There are two major characteristics of the perfectly competitive market:The same goods and services…

Q: for producers to to pro why? Explain f. e. What will happen to total surplus in the market if 110…

A: A equilibrium is the point where firm maximise the profit and produce efficient level of production…

Q: 1. use the theory of market( i.e demand and supply ) to expaln what is happening in each of the…

A: Market refers to a place where goods and services are exchanged.

Q: 1. Explain and use diagrams, to demonstrate the effect on prices and output if: a. farmers…

Q: Time left 0:3 While doing your weekly shopping, you note that the price of milk has risen relative…

A: Price of a good increases when its demand increases or supply decreases.

Q: 5. Quick Freeze Inc. sells small 'easy carry' coolers suitable for chilling beer and soft drinks.…

A: Given When the price of dry ice packets reduces from P1 $2.00 to P2 $1.00, the sale of easy carry…

Q: Base on your graph, what do you think are the factors that may affect the demand of the existing…

A: Coca and Pepsi are two big brands of the cold drink amd beverage industry . They are MNCs and are…

Q: Draw a supply and demand diagram of the market for beef in Australia. On you diagram, show the…

A: The forces of demand and supply as represented by demand and supply curves respectively can be used…

Q: You are advising a friend who sells paintings on the sidewalk. What price should she put on all the…

A: Microeconomics is a part of conventional economics that investigates how individuals and firms make…

Q: d. Market Supply. Determine the market demand and graph it. Supply Schedule for Mangoes Price (per…

A: The market supply is the horizontal summation of an individual's supply. It means market supply is…

Q: Consider the market for potatoes are considered as inferior good and income rises at the same time…

A: In a competitive market, the equilibrium price and quantity of a good are determined at a point…

Q: [10] Suppose a retail seller of jeans currently has 40 customers. The retailer offers the following…

A: Answer: (10). 40 consumers will buy 1st pair at the price of $100 each. 30 consumers will buy 2nd…

Q: Note: Once you enter a value in a white field, the graph and any corresponding amounts in each grey…

A: There is a direct relationship between income and demand. As income increases, the quantity demanded…

Q: n January 2020, Starbucks raised their beverage prices by an average of 1% across the U.S, a move…

A: Market refers to the place where buyer and sellers meet each other for exchanging goods and services

Q: Condition where buyers and sellers interact with each other to determine the price and quantity of a…

A: Price keeps changing in the market due to several reasons. Inflation, change in money supply etc.…

Q: Think about a competitive market in which youparticipate regularly. For each of the…

A: Market Structure depicts how firms are categorised and differentiated based on how their operations…

Q: Tools MC Productive eff Profit maximiz ATC Allocative effi Demand MR Quantity b. In which of these…

A: Profit maximization is where Marginal revenue equals marginal cost. Product efficiency occurs at…

Q: 2.Ques-A high school social science teacher reads an article about a shopping mall that straddles…

A: Macroeconomics focuses on aggregate economic developments that study the processes, structures, and…

Q: All else equal, airline tickets are typically more expensive if bought close to the date of travel.…

A: Businesses employ price discrimination to optimize revenue by charging clients various prices…

Q: 1. Using the figure above, what is the optimal quantity of goods for the firm to produce?

A: Answer: A firm maximizes its profit where marginal revenue (MR) is equal to the marginal cost (MC).…

Q: 3. When he prices of materials required in bathtub production increase, what effect (if any) does it…

A: The supply curve refers to the quantity that a producer wishes to sell at a given price in a given…

Q: For a seller, which of the following is NOT positively related? O The price of the good and the…

A: Keeping everything the equivalent on the off chance that the cost of production rises, the profit of…

Q: 14. Suppose a market is currently producing in an allocatively efficient manner. Using the concepts…

A: Perfect competitive market is a market structure where we have price = marginal cost and in the long…

Q: rnie owns a water pump. Because pumping large amounts of water is harder than pumping small amounts,…

A: Hi! Thank you for the question, As per the honor code, we are allowed to answer three sub-parts at a…

Q: What are the nature of product sold in perfect market ?

A: A market is a place or a platform where the buyers and sellers meet and interact with each other in…

Q: 5. Probiems and Damell owns a water pump. Because pumping large amounts of water is harder than…

A: Producer surplus is the area below the supply curve and above seller's minimum willingness to accept…

Q: Question 3 In 2018 there was a decrease in the supply of tequila in the United States. Which of the…

A: Factors causing decrease in supply:- 1) Increase in cost of production. 2) Any natural disaster 3)…

Q: What is the Supply Schedule and the Supply curve, and how are they related? Why does the Supply…

A: Note: Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the question…

Q: 1. The opportunity cost of the good is: a. greater during periods of raising prices b. equal to the…

A: Opportunity cost Opportunity cost is the cost of next best foregone.The opportunity cost of a…

Q: on decreases due to unknown goat diseases. What would happen to the market of salad items?

A: The buyers would tend to demand less of an economic good at higher levels of price as per the law of…

Q: What are the conditions for an efficient market?

A: Efficient market: Productive market is one where the market cost is an unprejudiced gauge of the…

Q: Adam owns a water pump. Because pumping large amounts of water is harder than pumping small amounts,…

A: (a) We have given the cost associated with pumping the bottle water and it can be tabulated as…

Q: 3) What rule do economists follow to determine the quantity that should be produced in order to…

A: 3) Profit maximization is the key feature or characteristic of the firms. Under this problem of…

Q: The price of the commodity is P4/unit. Complete the table below Note: The table has already been…

A: Answer 4. The graph below shows all the curves as follows :

Q: Producers are willing to increase production at higher prices to increase profit. Select one: O a.…

A: In economics, a market economy is the one where market demand and market supply determines the…

Q: (b) Explain the concept of market equilibrium with an appropriate diagram using the data provided…

A: The allocation of goods and services in a free market is a consequence of the interaction of demand…

Q: Refer to the accompanying table to answer the next six questions. Quantity of Quantity of Monthly…

A: Equilibrium in the market occurs at the intersection of demand and supply curves.

Question

Video Video

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1Question

VIEW

Step 2

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Similar questions

1. What are the conditions for an efficient market? Discuss if are they met in the reality.
Why do the prices of new houses in US go so high? Explain with help of supply and demand graph What are the factors that decrease supply of houses? Draw Supply and demand graph and show what happens to the prices and quantity of houses if the prices of raw materials increase? 3. What are your suggestions to the home builders?
What is a good or service that has become expensive/cheap due to (a) natural scarcity/abundance of supply or naturally high/low demand, and (b) artificial mean (e.g., government policy, competition restricting practices)?
Ernie 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: Bottle of water Cost Cost of 1st bottle $1 Cost of 2nd bottle $3 Cost of 3rd bottle $5 Cost of 4th bottle $7 1.From this information, derive Ernie’s supply schedule. 2.Graph his supply curve for bottled water. 3.If the price of a bottle of water is $4, how many bottles does Ernie produce and sell? How much producer surplus does Ernie get from these sales? Graph his supply curve for bottled water. 4.If the price rises to $6, how does quantity supplied change? How does Ernie’s producer surplus change? Show these changes in your graph.
#3= In her first month of business, Yaseen sells out of her kits in 3 days. In her second month of business, she decides to supply 60 kits. How much should she charge for each of these kits based on her supply function?
Think about a competitive market in which youparticipate regularly. For each of the characteristicsof a competitive market, explain how your marketmeets these requirements.
14. Suppose a market is currently producing in an allocatively efficient manner. Using the concepts of marginal utility, marginal cost, and price, explain exactly what that market must be doing and why that makes the outcome allocatively efficient or not.
2. What happens to equilibrium price andquantity when there is an increase intechnology? Why?
Question 4 and pr If a website facilitates the sale of goods by individuals and businesses over the internet, but requires actual pho to be posted instead of a manufacturer's stock picture of the product, both the demand and supply of products shift due to the improved information. If supply shifts by more than demand, quantity will decrease, increase O increase, decrease increase, be indeterminate O decrease, be indeterminate
Note:-If any graph possible do it also Do it on ms word plagarism must be 0. Plagarized content give 0 feedback so do it with carefully without any plarism.thanku
Suppose Alphonsos town raised the price of bus tickets to 1 per trip (while file price of burgers stayed at 2 and his budget remained 10 per week.) Draw Alphonsos new budget constraint. What happens to file opportunity cost of bus tickets?
Think back to a purchase that you made recently. How would you describe your thinking before you made that purchase?