EBK FOUNDATIONS OF ECONOMICS
8th Edition
ISBN: 8220103632225
Author: PARKIN
Publisher: PEARSON
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Chapter 15, Problem 8IAPA
To determine
To explain:
The graph of the U.S. strawberry market in long run equilibrium before the pollution crackdown and the short run effects of pollution crackdown.
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Austin is a dot-com entrepreneur who has established a Web site at which people can
design and buy awatch.
Austin pays $900 a month for a Web server and Internet connection. The watches that
customers design are made to order by another firm, and Austin pays
this firm $120 a watch. Austin has no other costs.
The table shows the demand schedule for Austin's
watches.
Austin is making an economic profit.
In the long run, the demand for Austin's watches
OA. decreases; incurs an economic loss
OB. increases; makes zero economic profit
C. increases, increases his economic profit
D. decreases; makes zero economic profit
OE. decreases; shuts down
and in long-run equilibrium, Austin
MIER
Price
(dollars per watch)
200
160
120
80
40
0
Quantity
(watches per month)
0
40
80
120
160
200
The left graph shows the world market for wheat. The right graph shows the cost curves and the marginal revenue curve of an individual wheat farmer at the initial long-run equilibrium. The world population increases. In the left graph, draw the new demand curve. Label it. Draw the market supply curve that returns the wheat market to its long-run equilibrium. Label it. Draw a point to show the new long-run equilibrium price and quantity. In the right graph, draw a point to show the firm's price and quantity in the long run.
Note:-
Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism.
Answer completely.
You will get up vote for sure.
The pen industry is an increasing cost industry. If a pen is an inferior good, and consumer's incomes permanently increase, the equilibrium price of a pen ____ in the long run, the equilibrium quantity of pens ______in the long run, and the number of firms in the market ____ in the long run.
Word Bank:
Decreases, Decreases, Decreases, Increases, Increases, Increases, does not change, does not change, does not change.
Chapter 15 Solutions
EBK FOUNDATIONS OF ECONOMICS
Ch. 15 - Prob. 1SPPACh. 15 - Prob. 2SPPACh. 15 - Prob. 3SPPACh. 15 - Prob. 4SPPACh. 15 - Prob. 5SPPACh. 15 - Prob. 6SPPACh. 15 - Prob. 7SPPACh. 15 - Prob. 8SPPACh. 15 - Prob. 9SPPACh. 15 - Prob. 10SPPA
Ch. 15 - Prob. 11SPPACh. 15 - Prob. 1IAPACh. 15 - Prob. 2IAPACh. 15 - Prob. 3IAPACh. 15 - Prob. 4IAPACh. 15 - Prob. 5IAPACh. 15 - Prob. 6IAPACh. 15 - Prob. 7IAPACh. 15 - Prob. 8IAPACh. 15 - Prob. 9IAPACh. 15 - Prob. 10IAPACh. 15 - Prob. 11IAPACh. 15 - Prob. 1MCQCh. 15 - Prob. 2MCQCh. 15 - Prob. 3MCQCh. 15 - Prob. 4MCQCh. 15 - Prob. 5MCQCh. 15 - Prob. 6MCQCh. 15 - Prob. 7MCQCh. 15 - Prob. 8MCQ
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