Microeconomics: Principles & Policy
14th Edition
ISBN: 9781337794992
Author: William J. Baumol, Alan S. Blinder, John L. Solow
Publisher: Cengage Learning
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Question
Chapter 1.A, Problem 3TY
To determine
Plotting of graph and calculation and interpretation of slope.
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In economics, what does the term ceteris paribus mean when analyzing the relationship between two variables? A. All other things being equal or held constant B. The direct relationship between two variables C. The inverse relationship between two variables D. The absence of any relationship between two variables
Which of the following pairs is most likely to exhibit an inverse relationship?a. The amount of time you study and your grade point averageb. People’s annual income and their expenditure on personal computersc. Baseball players’ salaries and their batting averagesd. The price of a concert and the number of tickets that people purchase
Marketing surveys conducted by the sales manager for a company determined that 3,000 power drills could be sold for $60 each, but 4,000 drills could be sold for $50 each.
(a)
If the two data points were plotted on a coordinate system with the number of drills sold on the horizontal axis and the price of each drill on the vertical axis, what is the slope of the line between the two points?
(b)
Write a sentence that explains the result in part (a) in the context of this problem.
For every additional drill sold, the price per drill (in cents) decreases by cent(s).
(c)
Assuming the trend in part (a) continues, how many drills can be sold for $56?
drills
Chapter 1 Solutions
Microeconomics: Principles & Policy
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