The Market for Car-Seat Heaters Price (dollars per heater) Quantity Demanded (heaters per month) Quantity Supplied (heaters per month) 40 50 60 70 80 90 100 500 450 400 350 300 250 200 300 350 400 450 500 550 600 a) Refer to Table 4 The equilibrium price is $ and the equilibrium quantity is heaters per month. b) Refer to Table 5 If the price is set at $80, there will be a c) Refer to Table 5 Suppose the cost of production rises and supply decreases by 100 units at each price. The new equilibrium price is $ and equilibrium quantity is units. d) Refer to Table 5 Suppose a problem develops with car-seat heaters - they malfunction and occasionally cause serious burns. As a result, demand decreases by 100 heaters at each price. The new equilibrium price is $ and the new equilibrium quantity is heaters per month. e) Refer to Table 5 Suppose a problem develops with car-seat heaters - they malfunction and occasionally cause serious burns. As a result, demand decreases by 100 heaters at each price. Simultaneously, the cost of production rises, and supply decreases by 100 heaters at each price. The new equilibrium price is $ and the new equilibrium quantity is heaters per month.

Principles of Microeconomics

7th Edition

ISBN:9781305156050

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter6: Supply, Demand And Government Policies

Section: Chapter Questions

Problem 3PA

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Question

Table 4

The Market for Car-Seat Heaters

Price

(dollars per heater)

Quantity Demanded

(heaters per month)

Quantity Supplied

(heaters per month)

100

500

450

400

350

300

250

200

300

350

400

450

500

550

600

a) Refer to Table 4 The equilibrium price is $________ and the equilibrium quantity is ________ heaters per month.
b) Refer to Table 5 If the price is set at $80, there will be a
c) Refer to Table 5 Suppose the cost of production rises and supply decreases by 100 units at each price. The new equilibrium price is $________ and equilibrium quantity is ________ units.
d) Refer to Table 5 Suppose a problem develops with car-seat heaters - they malfunction and occasionally cause serious burns. As a result, demand decreases by 100 heaters at each price. The new equilibrium price is $________ and the new equilibrium quantity is ________ heaters per month.
e) Refer to Table 5 Suppose a problem develops with car-seat heaters - they malfunction and occasionally cause serious burns. As a result, demand decreases by 100 heaters at each price. Simultaneously, the cost of production rises, and supply decreases by 100 heaters at each price. The new equilibrium price is $________ and the new equilibrium quantity is ________ heaters per month.

Definition Video Definition Point where the demand and supply curves intersect. At the equilibrium price the quantity supplied of a good is equal to the quantity demanded. When the market is not in equilibrium, market surplus or market shortage occurs. The region that is above the price equilibrium indicates market surplus and the region below the price equilibrium indicates market shortage. Video

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