![MACROECONOMICS-W/MINDTAP](https://www.bartleby.com/isbn_cover_images/9781305361409/9781305361409_largeCoverImage.gif)
MACROECONOMICS-W/MINDTAP
15th Edition
ISBN: 9781305361409
Author: Gwartney
Publisher: CENGAGE L
expand_more
expand_more
format_list_bulleted
Question
Chapter 3, Problem 4CQ
To determine
The difference between total value and marginal value.
Expert Solution & Answer
![Check Mark](/static/check-mark.png)
Trending nowThis is a popular solution!
![Blurred answer](/static/blurred-answer.jpg)
Students have asked these similar questions
Are prices an accurate measure of a good's total value? Are prices an accurate measure of a good's marginal value? What's the difference?
Can you think of a good that has a high total value but low marginal value?
Use this concept to explain why professional wrestlers earn more than nurses, despite the fact that it is almost certain that nurses create more total value for society than wrestlers.
When excess demand exists for tickets to a major sporting event or a concert, profit opportunities exist for scalpers. The table below indicates the
quantities demanded at various prices, fill in the values for the supply curve for tickets to a sold-out venue that holds 20,000 people.
Price per
Ticket
Quantity of Tickets
Demanded
Quantity of Tickets
Supplied
20,000
$50
45,000
100
40,000
20,000
150
35,000
20,000
200
30,000
20,000
250
25,000
20,000
300
20,000
350
15,000
20,000
20,000
The fact that there is a face-value price of $50 per ticket could be illustrated on a graph as a horizontal line at $50
The equilibrium price that will prevail in the market if scalpers are allowed to operate in the black market would be $ 300 per ticket.
The quantity of tickets demanded at the face-value price is 45,000 tickets.
For this example, a shortage of
tickets exists at the face-value price.
The demand and supply curves for beach volleyballs are given by:
D = 80-4P
S = -2+2P
The current price is 19. How much is the excess supply or demand? Write a positive number
if you find an excess supply, and write a negative number if you find an excess demand.
(round your answer to one decimal place)
Chapter 3 Solutions
MACROECONOMICS-W/MINDTAP
Knowledge Booster
Similar questions
- An increase in the supply of a good is expected to have what effect on its price? What will be the effect on the demand for substitutes?arrow_forwardDecide if the factors in the table will cause which of the following movements to happen in the market of TV: A = A shift of the demand curve B = A shift of the supply curve C = A movement along the demand curve D = A movement along the supply curve E = Shift to the left F = Shift to the right G = Move upward H = Move downward Factor A or B or C or D? E or F or G or H? i) An increase in the prices of substitutes of TV ii) TV producers pay lower wages to their workers iii) Fewer people watch TV nowarrow_forwardWhen excess demand exists for tickets to a major sporting event or a concert, profit opportunities exist for scalpers. The table below indicates the quantities demanded at various prices, fill in the values for the supply curve for tickets to a sold-out venue that holds 20,000 people Price per Ticket Quantity of Tickets Demanded Quantity of Tickets Supplied $50 45,000 100 40,000 150 35,000 200 30,000 250 25,000 300 20,000 350 15,000 The fact that there is a face-value price of $50 per ticket could be illustrated on a graph as The equilibrium price that will prevail in the market if scalpers are allowed to operate in the black market would be $ per ticket. The quantity of tickets demanded at the face-value price is tickets.arrow_forward
- A neurosurgeon makes about $600,000 a year. The community of neurosurgeons is relatively small. In the United States there are about 3,500 practicing. As the wages for a neurosurgeon increases to $800,000, the demand curve shiftsarrow_forwardIf the price of X decreases and this decreases the demand for Y, thenarrow_forwardDraw a correctly labeled graph showing the demand for apples. On your graph, illustrate what happens to the demand for apples if a new report from the Surgeon General finds that an apple a day really does keep the doctor away.arrow_forward
- Suppose that there is an excess supply of economics professors. Should universities necessarily reduce salaries? What does standard economic theory suggest? What does efficiency-wage theory suggest (Explain with diagram)arrow_forwardThe graph below represents the supply of Good X. The numbers on the chart show the percent changes in price and quantity moving along the supply curve. The numbers below the horizontal lines indicate the percent change in quantity, while the numbers to the right of the vertical lines indicate the percent change in price. Which portion of the supply curve for Good A is unitary elastic? Select the correct answer below: Point A to Point B Point B to Point C Point C to Point D Point D to Point Earrow_forwardBoth the supply and the demand for crude oil seem to be price inelastic. It implies that changes in the price of crude oil have a relatively small effect on the quantity demanded or supplied. On the demand side, people as well as businesses tend to continue using oil products even after its price increases, as there are often few substitutes in the short run. That is why there is still growing demand for crude oil. On the supply side, it is difficult as well as expensive for the producers to quickly increase or stop oil production as a response to price changes. Therefore, even after a price rise, the supply is not enough to meet demand. It implies that any given change in supply or demand is likely to have a comparatively large effect on the equilibrium price than on the quantity of crude oil (the percentage change in the price will be higher than the percentage change in quantity). Draw a graph to show the information abovearrow_forward
- Determine how each of the following factors would shift the demand curve for chiropractic visits and justify your answer: An increase in the out-of-pocket price of chiropractic visits An increase in back problems in the population A reduction in the out-of-pocket price for chiropractic visits. An increase in the out-of-pocket price for back surgery (a substitute for chiropractic services)? An aging of the population? A reduction in the price of radiographs (a complement to chiropractic services) An advertising campaign that makes people more aware of the benefits of chiropractic care.arrow_forwardPrice P₂ P₁ Q₂ ↓ D Quantityarrow_forwardHurricane Sandy to Raise Prices on Used Cars The immediate impact of Hurricane Sandy was devastating, and the storm's ripple effects will continue to be felt in the weeks and months ahead as communities work to recover. One side effect becoming apparent is Sandy's influence on the used car market. According to the Detroit Free Press, the destruction of some 250,000 vehicles has led to a shortage that could affect late-model used vehicle prices nationwide. The National Auto Dealers Association estimates that prices could increase 0.5% to 1.5%. That may not seem like much (550-S175 per vehicle), but Edmunds.com suggests that in the short term, prices could jump $700 to $1.000. Source: George Kennedy, Autoblog, November 10, 2012. © 2012 AOL Inc. All rights reserved. Market for Used Cars Post-hurricane Supply 23000 Pre-hurricane Supply 22000 21000 20000 Market Demand 19000 18000 6000 7000 8000 9000 10000 11000 Quantity (cars per day) Based on the News Wire, a. What is the initial…arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
- Economics: Private and Public Choice (MindTap Cou...EconomicsISBN:9781305506725Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. MacphersonPublisher:Cengage LearningMacroeconomics: Private and Public Choice (MindTa...EconomicsISBN:9781305506756Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. MacphersonPublisher:Cengage LearningMicroeconomics: Private and Public Choice (MindTa...EconomicsISBN:9781305506893Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. MacphersonPublisher:Cengage Learning
- Economics (MindTap Course List)EconomicsISBN:9781337617383Author:Roger A. ArnoldPublisher:Cengage Learning
![Text book image](https://www.bartleby.com/isbn_cover_images/9781305506725/9781305506725_smallCoverImage.gif)
Economics: Private and Public Choice (MindTap Cou...
Economics
ISBN:9781305506725
Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher:Cengage Learning
![Text book image](https://www.bartleby.com/isbn_cover_images/9781305506756/9781305506756_smallCoverImage.gif)
Macroeconomics: Private and Public Choice (MindTa...
Economics
ISBN:9781305506756
Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher:Cengage Learning
![Text book image](https://www.bartleby.com/isbn_cover_images/9781305506893/9781305506893_smallCoverImage.gif)
Microeconomics: Private and Public Choice (MindTa...
Economics
ISBN:9781305506893
Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher:Cengage Learning
![Text book image](https://www.bartleby.com/isbn_cover_images/9781337617406/9781337617406_smallCoverImage.gif)
![Text book image](https://www.bartleby.com/isbn_cover_images/9781337617383/9781337617383_smallCoverImage.gif)
Economics (MindTap Course List)
Economics
ISBN:9781337617383
Author:Roger A. Arnold
Publisher:Cengage Learning
![Text book image](https://www.bartleby.com/isbn_cover_images/9781337617390/9781337617390_smallCoverImage.gif)