Principles of Microeconomics, Student Value Edition Plus MyLab Economics with Pearson eText -- Access Card Package (12th Edition)
12th Edition
ISBN: 9780134421315
Author: Karl E. Case, Ray C. Fair, Sharon E. Oster
Publisher: PEARSON
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Textbook Question
Chapter 10, Problem 3.4P
The price of land is said to be “demand-determined.” Explain what this means and draw a graph to exemplify your explanation.
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The following graph shows the annual market for Florida oranges, which are sold in units of 90-pound boxes.
Use the graph input tool to help you answer the following questions. You will not be graded on any changes you make to this graph.
Note: Once you enter a value in a white field, the graph and any corresponding amounts in each grey field will change accordingly.
Graph Input Tool
Market for Florida Oranges
50
I Price
(Dollars per box)
45
15
Supply
40
Quantity
Demanded
Quantity Supplied
(Millions of boxes)
500
210
35
(Millions of boxes)
30
25
20
Demand
15
10
50
100 150 200 250 300 350 400 450 500
QUANTITY (Millions of boxes)
In this market, the equilibrium price is S
per box, and the equilibrium quantity of oranges is
million boxes.
PRICE (Dollars per box)
The blue curve on the following graph represents the demand curve facing a firm that can set its own prices.
Use the graph input tool to help you answer the following questions. You will not be graded on any changes you make to this graph.
Note: Once you enter a value in a white field, the graph and any corresponding amounts in each grey field will change accordingly.
Graph Input Tool
Market for Goods
200
I Quantity
Demanded
180
10
(Units)
160
140
Demand Price
100.00
(Dollars per unit)
120
100
80
60
Demand
40
20
6
8 10
QUANTITY (Units)
0 2
4
8
12
14
16
18
20
On the graph input tool, change the number found in the Quantity Demanded field to determine the prices that correspond to the production of 0, 4,
8, 10, 12, 16, and 20 units of output. Calculate the total revenue for each of these production levels. Then, on the following graph, use the green
points (triangle symbol) to plot the results.
1000
900
Total Revenue
800
700
600
500
400
300
200
100
+
2
4
6
8
10
12
14
16
18
20
QUANTITY…
Fill the following table.
Chapter 10 Solutions
Principles of Microeconomics, Student Value Edition Plus MyLab Economics with Pearson eText -- Access Card Package (12th Edition)
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- Consider the labor market defined by the supply and demand curves plotted on the following graph. Use the calculator to help you answer the following questions. You will not be graded on any changes you make to the calculator. WAGE (Dollars per hour) 24 21 18 15 12 6 3 0 0 Supply Demand 150 300 450 600 750 900 1050 1200 LABOR (Thousands of workers) Graph Input Tool Market for Labor Wage (Dollars per hour) Labor Demanded (Thousands of workers) Which of the following statements are true? Check all that apply. 3.00 1,050 Labor Supplied (Thousands of workers) Suppose the federal government contemplates a new law that would create a national minimum wage of $9.00 per hour. Complete the following table with the quantity of labor supplied and demanded if the wage is set at $9.00. Then indicate whether this wage will result in a shortage or a surplus. Hint: Be sure to pay attention to the units used on the graph and in the table. For example, type in 100 for 100,000 workers. Labor Demanded…arrow_forwardThe blue curve on the following graph represents the demand curve facing a firm that can set its own prices. Use the graph input tool to help you answer the following questions. You will not be graded on any changes you make to this graph. Note: Once you enter a value in a white field, the graph and any corresponding amounts in each grey field will change accordingly. On the graph input tool, change the number found in the Quantity Demanded field to determine the prices that correspond to the production of 0, 8, 16, 20, 24, 32, and 40 units of output. Calculate the total revenue for each of these production levels. Then, on the following graph, use the green points (triangle symbol) to plot the results. Calculate the total revenue if the firm produces 8 versus 7 units. Then, calculate the marginal revenue of the eighth unit produced. The marginal revenue of the eighth unit produced is . Calculate the total revenue if the firm produces 16 versus 15 units. Then,…arrow_forwardIn our paper airplane company, some inputs were fixed and some were variable. Match the input to whether it was VARIABLE or FIXED. Paper- Stapler- Staples- Employees- Production space-arrow_forward
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