Microeconomics, Student Value Edition (2nd Edition)
2nd Edition
ISBN: 9780134461786
Author: Daron Acemoglu, David Laibson, John List
Publisher: PEARSON
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Question
Chapter 1, Problem 8Q
To determine
The three conditions required to satisfy the equilibrium of the corn market.
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Demonstrate that if the markets for two commodities are in equilibrium, the third
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What are the factors that violate equilibrium prices and quantities? List and explain at least three of them?
Chapter 1 Solutions
Microeconomics, Student Value Edition (2nd Edition)
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Similar questions
- When a market is in equilibrium, which of the following is not correct Select one: a. the price determines which buyers and sellers participate in the market. b. those buyers who value the good more than the price choose to buy the good. c. those sellers whose costs are less than the price choose to produce and sell the good. d. the marginal cost of producing the last unit of the good is equal to consumers' marginal benefit from consuming the last unit e. the opportunity cost of producing the last unit of the good is equal to the absolute advantage of producing it.arrow_forwardWhy an equilibrium is defined as a price?arrow_forwardWhich is the correct answer ? Coffee and doughnuts are complements in consumption. Suppose bad weather in the coffee producing regions of the world, which shifts the coffee supply curve leftward. How do the general equilibrium price and quantity outcomes compare to the partial equilibrium outcomes for this situation? A. General equilibrium price and quantity are higher. B. General equilibrium price is higher and quantity is lower. C. General equilibrium price is lower and quantity is higher. D. General equilibrium price and quantity are lower.arrow_forward
- Choose the correct answer. Coffee and doughnuts are complements in consumption. Suppose bad weather in the coffee producing regions of the world, which shifts the coffee supply curve leftward. How do the general equilibrium price and quantity outcomes compare to the partial equilibrium outcomes for this situation? A. General equilibrium price and quantity are higher. B. General equilibrium price is higher and quantity is lower. C. General equilibrium price is lower and quantity is higher. D. General equilibrium price and quantity are lower.arrow_forwardIn each of the following questions assume that the market is in equilibrium at X. Identify the new equilibrium following the changes given below: The market is for private education, and it receives a subsidy from the state because it is perceived to be a merit good. The market is for new housing, and building costs fall following a general fall in oil prices. The market is for cigarettes, and the government increases indirect taxes and at the same time smoking become less fashionable for people over 30. The market is for motor insurance, and the price of cars falls and at the same time the government subsidises private motor insurance. The market is for electronic goods which often employs very low paid assembly workers. The minimum wage rises and interest rates rise which affects consumer confidence. The market is for student textbooks following a fall in the costs of printing and a considerable increase in the numbers of students going to university. The market is for…arrow_forward“There is constantly a shift in supply and demand curves and markets are never at equilibrium. As a result, there is no purpose of the concept of equilibrium.” Do you agree/disagree with this statement.arrow_forward
- What is an equilibrium conditions? How do we know that we have an equilibrium condition?arrow_forwardIs the following statement true or false? “In the goods market, no buyer would be willing to pay more than the equilibrium price.” Why might a buyer be willing to pay more than the equilibrium price for a good? If some buyers are willing to pay more than the equilibrium price for a good, why do we expect sellers to charge only the equilibrium price in a competitive market?arrow_forwardExplain why price moves towards equilibrium in a free market and why the equilibrium price may change over time.arrow_forward
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