Microeconomics, Student Value Edition (6th Edition)
6th Edition
ISBN: 9780134125756
Author: R. Glenn Hubbard, Anthony Patrick O'Brien
Publisher: PEARSON
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Chapter 17, Problem 17.6.5PA
To determine
Changes in demand and supply of natural resources.
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Using 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
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The federal government raises the minimum wage from $7.25 per hour to $11.00 per hour
Minimum wage jobs…
In 2002, a meeting is hold in a state-owned farm with one million mu of arable land—B farm after the harvest:
Production department section Li said:
This year we planted 0.6 million Mu (a unit of area, 1 Mu=0.0667 hectares) wheat, and got 280 kilograms’ wheat per Mu. But after this year's harvest, a new difficulty arises that price of wheat is decreasing now. Usually, the farm will keep 10 million kilograms as seeds and 18 million kilograms for living, and sell the rest to the market. If the firm doesn't sell and keeps the wheat in a long term, the weight of the wheat will decline for the moisture loss from 14% to 13%, which means the farm will loss 1.4 million kilograms.
The manager of the supply and marketing, Mr. Liu said:
Last year, the price of wheat is 0.96 yuan per kilogram, but now is only 0.80 yuan per kilogram. This causes a big loss to our farm this year. Therefore, we can't sell now! The manager of grain, Mr. Lin said:
We have to sell. We predict that the low wheat price…
In 2002, a meeting is hold in a state-owned farm with one million mu of arable land—B farm after the harvest:
Production department section Li said:
This year we planted 0.6 million Mu (a unit of area, 1 Mu=0.0667 hectares) wheat, and got 280 kilograms’ wheat per Mu. But after this year's harvest, a new difficulty arises that price of wheat is decreasing now. Usually, the farm will keep 10 million kilograms as seeds and 18 million kilograms for living, and sell the rest to the market. If the firm doesn't sell and keeps the wheat in a long term, the weight of the wheat will decline for the moisture loss from 14% to 13%, which means the farm will loss 1.4 million kilograms.
The manager of the supply and marketing, Mr. Liu said:
Last year, the price of wheat is 0.96 yuan per kilogram, but now is only 0.80 yuan per kilogram. This causes a big loss to our farm this year. Therefore, we can't sell now! The manager of grain, Mr. Lin said:
We have to sell. We predict that the low wheat price…
Chapter 17 Solutions
Microeconomics, Student Value Edition (6th Edition)
Ch. 17 - Prob. 17.1.1RQCh. 17 - Prob. 17.1.2RQCh. 17 - Prob. 17.1.3RQCh. 17 - Prob. 17.1.4RQCh. 17 - Prob. 17.1.5PACh. 17 - Prob. 17.1.6PACh. 17 - Prob. 17.1.7PACh. 17 - Prob. 17.1.8PACh. 17 - Prob. 17.1.9PACh. 17 - Prob. 17.2.1RQ
Ch. 17 - Prob. 17.2.2RQCh. 17 - Prob. 17.2.3PACh. 17 - Prob. 17.2.4PACh. 17 - Prob. 17.2.5PACh. 17 - Prob. 17.2.6PACh. 17 - Prob. 17.2.7PACh. 17 - Prob. 17.2.8PACh. 17 - Prob. 17.3.1RQCh. 17 - Prob. 17.3.2RQCh. 17 - Prob. 17.3.3PACh. 17 - Prob. 17.3.4PACh. 17 - Prob. 17.3.5PACh. 17 - Prob. 17.3.6PACh. 17 - Prob. 17.3.7PACh. 17 - Prob. 17.3.8PACh. 17 - Prob. 17.4.1RQCh. 17 - Prob. 17.4.2RQCh. 17 - Prob. 17.4.3RQCh. 17 - Prob. 17.4.4RQCh. 17 - Prob. 17.4.5PACh. 17 - Prob. 17.4.6PACh. 17 - Prob. 17.4.7PACh. 17 - Prob. 17.4.8PACh. 17 - Prob. 17.4.9PACh. 17 - Prob. 17.4.10PACh. 17 - Prob. 17.4.11PACh. 17 - Prob. 17.4.12PACh. 17 - Prob. 17.4.13PACh. 17 - Prob. 17.4.14PACh. 17 - Prob. 17.4.15PACh. 17 - Prob. 17.4.16PACh. 17 - Prob. 17.4.17PACh. 17 - Prob. 17.4.18PACh. 17 - Prob. 17.4.19PACh. 17 - Prob. 17.4.20PACh. 17 - Prob. 17.4.21PACh. 17 - Prob. 17.5.1RQCh. 17 - Prob. 17.5.2RQCh. 17 - Prob. 17.5.3RQCh. 17 - Prob. 17.5.4PACh. 17 - Prob. 17.5.5PACh. 17 - Prob. 17.5.6PACh. 17 - Prob. 17.5.7PACh. 17 - Prob. 17.5.8PACh. 17 - Prob. 17.6.1RQCh. 17 - Prob. 17.6.2RQCh. 17 - Prob. 17.6.3RQCh. 17 - Prob. 17.6.4PACh. 17 - Prob. 17.6.5PACh. 17 - Prob. 17.6.6PACh. 17 - The total amount of oil in the earth is not...Ch. 17 - Prob. 17.6.8PA
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