MICROECONOMICS FOR TODAY (LL)-W/MINDTAP
10th Edition
ISBN: 9781337739115
Author: Tucker
Publisher: CENGAGE L
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Question
Chapter 4, Problem 11SQ
To determine
The price that the consumer will pay in the market.
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Students have asked these similar questions
Graph the supply and demand curves from the table.
P ($)
QD
Qs
6.00 130 100
6.50 120 120
7.00 110 140
7.50 100 160
90 180
8.00
8.50 80 200
9.00 70 220
What is the market clearing price?
What is the equilibrium quantity?
When the price is $8.00 is there a surplus or shortage and how much is it?
Suppose the total demand for wheat and the total supply of wheat per month in the
Kansas City grain market are as follows:
a.
Thousands
of bushels
demanded
85
80
75
70
65
60
Price
per
bushel
$3.40
3.70
4.00
4.30
4.60
4.90
Thousand
of bushels
Supplied
72
73
75
77
79
81
Surplus (+)
or
shortage (-)
What will be the market or equilibrium price? What is the equilibrium quantity?
Using the surplus-shortage column, explain why your answers are correct.
b. Graph the demand for wheat and the supply of wheat. Be sure to label the axes of
your graph correctly. Label equilibrium price "P" and the equilibrium quantity "Q."
c. Why will $3.40 not be the equilibrium price in this market? Why not $4.90?
"Surpluses drive prices up; shortages drive them down." Do you agree?
d Now suppose that the government establishes a ceiling price of, say, $3.70 for wheat.
Explain carefully the effects of this ceiling price.
Demonstrate your answer graphically. What might prompt the government to
establish a ceiling…
a. If a producer tries to sell oranges at a price of $0.50 per pound, what will be the quantity demanded and quantity supplied at this price?
b. Determine whether there is a surplus or a shortage at a price of $0.50 per pound, and determine the size of the surplus or shortage.
At this price, there will be a
Chapter 4 Solutions
MICROECONOMICS FOR TODAY (LL)-W/MINDTAP
Ch. 4.2 - Prob. 1YTECh. 4.2 - Prob. 2YTECh. 4.2 - Prob. 3YTECh. 4.2 - Prob. 4YTECh. 4.3 - Prob. 1YTECh. 4.3 - Prob. 2YTECh. 4 - Prob. 1SQPCh. 4 - Prob. 2SQPCh. 4 - Prob. 3SQPCh. 4 - Prob. 4SQP
Ch. 4 - Prob. 5SQPCh. 4 - Prob. 6SQPCh. 4 - Prob. 7SQPCh. 4 - Prob. 8SQPCh. 4 - Prob. 9SQPCh. 4 - Prob. 10SQPCh. 4 - Prob. 1SQCh. 4 - Prob. 2SQCh. 4 - Prob. 3SQCh. 4 - Prob. 4SQCh. 4 - Prob. 5SQCh. 4 - Prob. 6SQCh. 4 - Prob. 7SQCh. 4 - Prob. 8SQCh. 4 - Prob. 9SQCh. 4 - Prob. 10SQCh. 4 - Prob. 11SQCh. 4 - Prob. 12SQCh. 4 - Prob. 13SQCh. 4 - Prob. 14SQCh. 4 - Prob. 15SQCh. 4 - Prob. 16SQCh. 4 - Prob. 17SQCh. 4 - Prob. 18SQCh. 4 - Prob. 19SQCh. 4 - Prob. 20SQ
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- Instructions: Enter your answers as whole numbers. If you are entering any negative numbers be sure to include a negative sign (-) in front of those numbers. Thousands of Bushels Demanded Price per Bushel Thousands of Bushels Supplied Surplus (+) or Shortage (-) 88 $3.40 65 81 3.70 71 75 4.00 75 70 4.30 78 66 4.60 80 63 4.90 81 a. What is the equilibrium price in this market? At what price is there neither a shortage nor a surplus? b. Graph the demand for wheat and the supply of wheat. Be sure to locate the equilibrium price and quantity. Instructions: Enter all numeric values without a minus sign. c. How big is the surplus or shortage at $3.40? There is a of How big is the surplus or shortage at $4.90? There is a of d. How big a surplus or shortage results if the price is 60 cents higher than the equilibrium price? e. How big a surplus or shortage results if the price is 30 cents lower than the…arrow_forwardj k larrow_forward4. You are given the following information on the Ferby market: QD = 12,000 - 20P Qs = 6,000 +5 P Where quantity is in thousand units and price in thousand baht. a. Calculate the equilibrium price and equilibrium quantity of the Ferby.arrow_forward
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