MYECON LAB W/PEARSON ETEXT MICROECON>IP
9th Edition
ISBN: 9780134153988
Author: PINDYCK
Publisher: PEARSON
expand_more
expand_more
format_list_bulleted
Question
Chapter 1, Problem 5RQ
To determine
Exchange rate between US dollar and Japanese yen.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solutionStudents have asked these similar questions
Discuss clearly how the following items may affects the change in demand.
Population change
Prices of related goods
Expected future prices, income, and credit
Factors affecting demand and supply are the various factors that influence the quantity of a good or service that buyers (consumers) are willing to purchase and the quantity that sellers (producers) are willing to produce and sell, respectively. Understanding the factors is important for businesses, policymakers, and consumers to make informed decisions about pricing, production, and consumption.
The prediction is that global consumption of crude oil will exceed production by 20 million barrels this year, which means there will be a shortage of supply. This could lead to further price increases if demand continues to grow, which would result in higher costs for consumers and businesses.
However, this imbalance is likely to be corrected over time as higher prices incentivize more production, while lower demand could lead to a reduction in consumption. Additionally, new sources of supply could come up or existing sources could increase their output in response to higher prices. In the…
Explain the three functions of the price mechanism in an economy!
Chapter 1 Solutions
MYECON LAB W/PEARSON ETEXT MICROECON>IP
Knowledge Booster
Similar questions
- Please explain how an increase in the price of crude oil can affect the Canadian economy.arrow_forwardConsider the economy of Russia, which produces oil and cars that are sold both domestically and internationally. Suppose an increase in foreign income causes an increase in the world demand for oil, whereas the supply does not change. The following graph shows the market for oil in Russia. Adjust the following graph to show the effect of a higher demand for oil on the economy of Russia. Note: Select and drag one or both of the curves to the desired position. Curves will snap into position, so if you try to move a curve and it snaps back to its original position, just drag it a little farther.arrow_forwardWhat is the terminology for this definition below? Prices rise because more goods and services are trying to be purchased than the economy can producearrow_forward
- Fast moving consumer goods (FMCG) dollar sales soared to $77.9 billion across all U.S. channels for the 52 weeks ended Sept. 12, 2020, translating to year-over-year growth of 9.3%. Assuming that demand for FMCG is downward sloping and supply is upward sloping, and that this change is driven strictly by increased demand (while supply remained the same), can you tell how the increase in the average prices of FMCG compares to 9.3%? Do you have enough information to tell whether it will be higher or lower than 9.3%?arrow_forwardQuestion For each sentence below describing changes in the tangerine market, discuss whether the statement is true, false, or uncertain. Justify your answer. (You will find it helpful to draw a graph for each case.) • If consumers’ income increases, and the wage of the laborers in the industry falls, the quantity purchased in the market will rise and the price will fall. • If orange prices decrease, and a new agro-chemical increases the productivity of tangerine trees, the quantity will fall and the price will rise. • If the price of canning machinery (a complement) increases, and the growing season is unusually cold, both quantity and price will fall.arrow_forwardThe demand for pizza is given by Qp= 85 − 0.4P where Qp is the quantity demanded in slices and P is the price per slice. The supply of pizza is given by Qs= 55 + 0.6p. Calculate the equilibrium price and equilibrium quantity of pizza Calculate the demand and supply for pizza if the market price is $15 per slice. What problem exists in the economy? What would you expect to happen to price? As more people buy televisions, the demand for Netflix increases and the price of Netflix decreases. The fall in the price of Netflix decreases the supply of Netflix. Explain what is wrong with this statement Butter and toast are often consumed together. Both the equilibrium price of toast and the equilibrium quantity of butter have risen. What could be responsible for this pattern—a fall in the price of milk or a fall in the price of flour? Illustrate and explain your answer. Suppose instead that the equilibrium price of toast has risen but the equilibrium quantity of butter has fallen. What could be…arrow_forward
- Beer production in Mexico rose 4.7 percent in 2021, registering 118.7 million hectoliters more. Although the installed capacity of the brewing industry allowed for its gradual recovery, particularly towards the second half, this increase is explained by the fact that, by the end of 2021, a greater number of massive events were held that allowed the demand for beer to increase. The increase in beer production in Mexico is explained by a shift in the demand curve to the right, this movement causes a decrease in the price of beer, which helped reactivate the market. (T/F) _______arrow_forwardSuppose that the price of semiconductor chips used to make laptop computers falls. On the other hand, the number of people using laptops to work remotely decreases. You predict that the prices of laptops will (rise/fall)____ because the supply of laptops (increases/decreases)______and the demand for laptops (increases/decreases)arrow_forwardSupposing that some intelligence information point to an increase in the price of sugar in the near future. Using a graph, illustrate how this will affect its current demand.arrow_forward
- Analysts say that the increase in gasoline prices comes a drop in SUV sales and trade-in values at dealerships.The U.S. Department of energy said that during the past week, U.S. gasoline topped $3 a gallon - the highest level since October 2008. According to Alec Gutierrez,lead analyst for vehicle evaluation at Kelley Blue Book, SUV sales have decreased about 1 percent since the last major gasoline price hike in spring 2008. He doesn't believe that SUV sales will decrease significantly unless prices reach $3.50 to $4 per gallon. if a gasoline price hike of 5 percent caused the SUV sales drop described, what is the cross-price elasticity of demand between gasoline and SUVs?arrow_forwardUsing the table, for each line item and its associated column, describe how the market for each specific product will be affected by the associated event indicating whether it will rise, fall, or no change. For example, in the first line item for the market of corn, based upon the event of a severe drought, the price will either rise or fall or no change, demand curve will shift left (fall) or right (rise) or no change, supply curve will shift left (fall) or shift right (rise) or no change, quantity demanded will rise, fall, or no change, and quantity supplied will either rise, fall, or no change. Event Market for: Price Demand Curve Supply Curve Quantity Demanded Quantity Supplied A severe drought hits the Midwest corn growers Corn The U.S. government reduces taxes on imported lumber New Home Building The federal government raises the minimum wage from $7.25 per hour to $11.00 per hour Minimum wage jobs…arrow_forward"The diagram reveals that X2>X1. This indicates that consumption of X rose as X's price went up." --> Can you explain, because I thought the law of the demand has an inverse relationship?arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
- Economics (MindTap Course List)EconomicsISBN:9781337617383Author:Roger A. ArnoldPublisher:Cengage Learning
- Survey of Economics (MindTap Course List)EconomicsISBN:9781305260948Author:Irvin B. TuckerPublisher:Cengage Learning
Economics (MindTap Course List)
Economics
ISBN:9781337617383
Author:Roger A. Arnold
Publisher:Cengage Learning
Survey of Economics (MindTap Course List)
Economics
ISBN:9781305260948
Author:Irvin B. Tucker
Publisher:Cengage Learning