MICROECONOMICS CONNECT ACCESS
2nd Edition
ISBN: 9780077491703
Author: BERNHEIM
Publisher: MCG
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Chapter 2, Problem 5P
To determine
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Using the supply and demand functions below, derive the demand and supply curves if
Y=$55,000
and
pc=$9.
What is the equilibrium price and quantity of coffee?
Part 2
The demand function for coffee is
Q=8.5−p+0.01Y,
where Q is the quantity of coffee in millions of pounds per year, p is the price of coffee in dollars per pound, and Y is the average annual household income in high-income countries in thousands of dollars.
The coffee supply function is
Q=9.6+0.5p−0.2pc,
where
pc
is the price of cocoa in dollars per pound.
At a price of $1.94 per bushel, the supply of corn is 9,800 million bushels and the demand is 9,300 million bushels. At a price of $1.82 per bushel, the supply is 9,400 million bushels and the demand is 9,500 million bushels.
Find a price supply equation of the form p=mx+b.
Find a price-demand equation of the form p=mx+b.
Find the equilibrium point.
Suppose that the cost of crude oil decreases from $25 to $20 for each barrel of heating oil produced. Assuming that the rest of the determinants of supply and demand for heating oil remain equal to their initial values, the market will eventually reach a new equilibrium price of
per barrel.
Chapter 2 Solutions
MICROECONOMICS CONNECT ACCESS
Ch. 2 - Prob. 1DQCh. 2 - Prob. 2DQCh. 2 - Prob. 3DQCh. 2 - Prob. 4DQCh. 2 - Prob. 1PCh. 2 - Prob. 2PCh. 2 - Prob. 3PCh. 2 - Prob. 4PCh. 2 - Prob. 5PCh. 2 - Prob. 6P
Ch. 2 - Prob. 7PCh. 2 - Prob. 8PCh. 2 - Suppose the demand function for jelly beans in...Ch. 2 - Prob. 10PCh. 2 - Prob. 11PCh. 2 - Suppose the annual demand function for the Honda...Ch. 2 - Prob. 13PCh. 2 - The demand function for a product is Qd = 100 ...Ch. 2 - Prob. 2CPCh. 2 - Prob. 3CPCh. 2 - Prob. 4CPCh. 2 - Suppose that the demand function for jelly beans...
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