Bartleby Sitemap - Textbook Solutions
All Textbook Solutions for Microeconomics
1ST2ST3ST1ST2ST3ST1ST2ST3ST4ST1QP2QP3QP4QP5QP6QP7QP8QP9QP10QP11QP12QP13QP14QP15QP16QP17QP18QP19QP20QP21QP22QP23QP24QP25QP26QP1WNG2WNG3WNG1QP2QP3QP4QP5QP6QP7QP8QP9QP1ST2ST3ST4ST1QP2QP3QP4QP5QP6QP7QP8QP9QP10QP11QP12QP13QP1WNG2WNG3WNG4WNG5WNG6WNG7WNG8WNG9WNG10WNG11WNG12WNG1ST2ST3ST4ST1ST2ST3ST1STThe price of a personal computer of a given quality is lower today than it was five years ago. Is this necessarily the result of a lower demand for computers? Explain your answer.3ST4ST5ST1QP2QP3QP4QP5QP6QP7QP8QP9QP10QP11QP12QP13QP14QP15QP16QP17QP18QP19QP20QP21QP22QP23QP24QP25QP26QP27QP28QP1WNG2WNG3WNG4WNG5WNG6WNG7WNG8WNG9WNG1ST2ST3ST1ST2ST3ST1ST2ST1QP2QP3QP4QP5QP6QP7QP8QP9QP10QP11QP1WNG2WNG3WNG4WNG5WNG6WNG1ST2ST1ST2STSuppose college students are given two options. With option A, the price a student pays for a class is always the equilibrium price. For example, if the equilibrium price to take Economics 101 is 600 at 10 a.m. and 400 at 4 p.m., then students pay more for the early class than they do for the later class. With option B, the price a student pays for a class is the same regardless of the time the class is taken. Given the choice between options A and B, many students would say that they prefer option B to option A. Is this the case for you? If so, why would that be your choice?2ST1ST2ST1ST2STGive an example to illustrate that someone may pay for clean air in much the same way that she pays for good weather.2ST1ST2ST1ST2ST1ST2ST1ST2ST1ST2ST1ST2ST1QP2QP3QP4QP5QP6QP7QP8QP9QP10QP11QP12QP13QP14QP15QP16QP1WNG2WNG3WNG4WNG5WNG6WNGOn Tuesday, the price and quantity demanded are 7 and 120 units, respectively. Ten days later, the price and quantity demanded are 6 and 150 units, respectively. What is the price elasticity of demand between the 7 and 6 prices?What does a price elasticity of demand of 0.39 mean?3ST4ST1ST2ST1ST2ST3ST4ST1QPFor each of the following, identify where demand is elastic, inelastic, perfectly elastic, perfectly inelastic, or unit elastic: a. Price rises by 10 percent, and quantity demanded falls by 2 percent. b. Price falls by 5 percent, and quantity demanded rises by 4 percent. c. Price falls by 6 percent, and quantity demanded does not change. d. Price rises by 2 percent, and quantity demanded falls by 1 percent.Prove that price elasticity of demand is not the same as the slope of a demand curve.4QP5QPSuppose a straight-line downward-sloping demand curve shifts rightward. Is the price elasticity of demand higher, lower, or the same between any two prices on the new (higher) demand curve than on the old (lower) demand curve?7QP8QP9QP10QPSuppose you learned that the price elasticity of demand for wheat is 0.7 between the current price for wheat and a price 2 higher per bushel. Do you think that farmers collectively would try to reduce the supply of wheat and drive the price up 2 higher per bushel? Explain your answer. Assuming that they would try to reduce supply, what problems might they have in actually doing so?12QP13QP14QPA college raises its annual tuition from 23,000 to 24,000, and its student enrollment falls from 4,877 to 4,705. Compute the price elasticity of demand. Is demand for the college elastic or inelastic?As the price of good X rises from 10 to 12, the quantity demanded of good Y rises from 100 units to 114 units. Are X and Y substitutes or complements? What is the cross elasticity of demand?The quantity demanded of good X rises from 130 to 145units as income rises from 2,000 to 2,500 a month. What is the income elasticity of demand for good X?The quantity supplied of a good rises from 120 to 140 as price rises from 4 to 5.50. What is the price elasticity of supply of the good?In the accompanying figure, what is the price elasticity of demand between the two prices on D1? On D2?1ST2ST3ST1ST2ST1ST2ST1QP2QP3QP4QP5QP6QP7QP8QP9QP10QP11QP12QP13QP14QP15QP16QP1WNG2WNG3WNG4WNG5WNG6WNG7WNG1QP2QP3QPUse indifference curve analysis to derive a demand curve.1ST2ST3ST4ST1ST2ST3ST1ST2ST3ST4ST1ST2ST3ST1QP2QP3QP4QP5QP6QP7QP8QP9QP10QP11QP12QP13QP14QP15QP16QP17QP18QP19QP1WNG2WNG3WNG4WNG5WNG6WNG7WNG