Microeconomics (9th Edition) (Pearson Series in Economics)
9th Edition
ISBN: 9780134184241
Author: Robert Pindyck, Daniel Rubinfeld
Publisher: PEARSON
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Question
Chapter 16, Problem 2E
(a)
To determine
The effects of disease on chicken farms on markets for chicken and pork.
(b)
To determine
The effects of increased taxes on travel and accommodation on major tourist spots.
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Using general equilibrium analysis, and taking into account feedback effects, analyze the effects of increased taxes on airline tickets on travel to major tourist destinations such as Florida and California and on the hotel rooms in those destinations.
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.
Which 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.
Chapter 16 Solutions
Microeconomics (9th Edition) (Pearson Series in Economics)
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- Suppose that the equilibrium price and quantity of new houses both increase. Which of the following could be a cause of this change? Group of answer choices a.The wage paid carpenters who build new houses might have risen. b.A technological advance in framing a new house might have occurred. c.The rent for nearby apartments might have fallen. d.More home buyers might have moved into the area. e.The cost of wood framing used to build houses might have fallen.arrow_forwardConsider two substitute products; movies and Box Office rentals. With the aid of graphical illustrations, explain why the outcome of a general equilibrium analysis can differ substantially from that of a partial equilibrium analysis, when evaluating the impact of a unit tax on movie tickets.arrow_forwardLet’s assume that a severe hurricane destroys many shrimp farms along the Gulf Coast of Louisiana. The impact on the market for farmed shrimp will be a shift to the left of: Group of answer choices the demand curve, as consumers try to economize because of the shortage. the supply curve and a rightward shift of the demand curve, resulting in a higher equilibrium price. the supply curve. both the supply and demand curves.arrow_forward
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