Principles of Macroeconomics, Student Value Edition (12th Edition)
12th Edition
ISBN: 9780134079530
Author: Karl E. Case, Ray C. Fair, Sharon E. Oster
Publisher: PEARSON
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Chapter 3, Problem 5.2P
Subpart (a):
To determine
Supply and
Subpart (b):
To determine
Pricing policy for changing demand.
Subpart (c):
To determine
Pricing policy of ticket.
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In 2016, X Company produced $100,000 worth of synthetic silk. In the same year, X Company sold $1,000 of this silk directly to consumers, via its online outlet. X Company also sold $50,000 of the fabric to Y Company. Y Company used the fabric in 2016 to produce $85,000 worth of designer swimwear.Â
X Company sold the remaining silk in 2017 to Z Company, where it was all used to produce a single fabulous $300,000 Say-Yes-to-the-Dress-type gown.
Under the Spending Approach, how much did all of this economic activity contribute to 2016's GDP?
a) $100,000 in silk, $35,000 in swimwear, $0 in bridal gowns
b) $50,000 in silk, $85,000 in swimwear, $300,000 in bridal gowns
c) $1,000 in silk, $35,000 in swimwear, $251,000 in bridal gowns
d) $1,000 in silk, $85,000 in swimwear, $300,000 in bridal gowns
e) $50,000 in silk, $85,000 in swimwear, $0 in bridal gowns
f) $50,000 in silk, $35,000 in swimwear, $0 in bridal gowns
An NBC News headline on April 27, 2020 states “Groceries could see meat shortages by end of week amid plant closings”. (https://www.nbcnews.com/news/us-news/groceries-could-see-meat-shortages-end-week-amid-plant-closingIs-n1193401 Within the story is a subheading “Tyson Foods warns “supply chain is breaking” amid coronavirus pandemic.” The article states “Beef, chicken and pork could be as scarce as toilet paper soon because so many meat processing plants have been temporarily shut down amid the coronavirus pandemic, industry experts are warning.”For the sake of simplicity, let’s consider the market for pork. Draw a supply and demand graph that illustrates what is happening in the market for pork and explain what will happen to the total revenue of pig farmers and to total revenues of Tyson Foods as a result?
) A newspaper article mentions that two of South Korea’s largest semiconductor manufacturers, - Samsung Electronics Company and Hynix Semiconductor - would suspend all their memory chip production for some time. The article goes on to say that another large semiconductor manufacturer was likely to follow suit. Collectively, these chip manufacturers produce about 30 percent of the world’s basic semiconductor chips. Based on this information, how is the market for computers altered? Explain in detail.
Chapter 3 Solutions
Principles of Macroeconomics, Student Value Edition (12th Edition)
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