Economics, Student Value Edition (7th Edition)
7th Edition
ISBN: 9780134739229
Author: R. Glenn Hubbard, Anthony Patrick O'Brien
Publisher: PEARSON
expand_more
expand_more
format_list_bulleted
Concept explainers
Question
Chapter 4, Problem 4.3.12PA
To determine
The shortage of the goods.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solution
Students have asked these similar questions
Briefly explain, by means of examples, the difference between a
maximum price and a minimum price.
Graphically show how each of the following affects the demand curve. Also explain which factor of demand is being affected in each case:
Salt is a “Neutral Good”. If income increases, how does it affect the demand for salt?
What happens to the demand for Bus Rides when the Metro Rail starts running?
Briefly explain and illustrate whether the following statement is true or false: ‘When there is a shortage of a good, consumers eventually give up trying to buy it, so the demand for the good declines, and the price falls until the market is finally in equilibrium’.
Chapter 4 Solutions
Economics, Student Value Edition (7th Edition)
Ch. 4.A - Prob. 1RQCh. 4.A - Prob. 2RQCh. 4.A - Prob. 3RQCh. 4.A - Prob. 4RQCh. 4.A - Prob. 5PACh. 4.A - Prob. 6PACh. 4.A - Prob. 7PACh. 4.A - Prob. 8PACh. 4.A - Prob. 9PACh. 4 - Prob. 1TC
Ch. 4 - Prob. 2TCCh. 4 - Prob. 4.1.1RQCh. 4 - Prob. 4.1.2RQCh. 4 - Prob. 4.1.3RQCh. 4 - Prob. 4.1.4RQCh. 4 - Prob. 4.1.5PACh. 4 - Prob. 4.1.6PACh. 4 - Prob. 4.1.7PACh. 4 - Prob. 4.1.8PACh. 4 - Prob. 4.1.9PACh. 4 - Prob. 4.1.10PACh. 4 - Prob. 4.1.11PACh. 4 - Prob. 4.1.12PACh. 4 - Prob. 4.1.13PACh. 4 - Prob. 4.1.14PACh. 4 - Prob. 4.2.1RQCh. 4 - What is economic efficiency? Why do economists...Ch. 4 - Prob. 4.2.3PACh. 4 - Prob. 4.2.4PACh. 4 - Prob. 4.2.5PACh. 4 - Prob. 4.2.6PACh. 4 - Prob. 4.2.7PACh. 4 - Prob. 4.2.8PACh. 4 - Prob. 4.2.9PACh. 4 - Prob. 4.2.10PACh. 4 - Prob. 4.3.1RQCh. 4 - Prob. 4.3.2RQCh. 4 - Prob. 4.3.3RQCh. 4 - Prob. 4.3.4RQCh. 4 - Prob. 4.3.5PACh. 4 - Prob. 4.3.6PACh. 4 - Prob. 4.3.7PACh. 4 - Prob. 4.3.8PACh. 4 - Prob. 4.3.9PACh. 4 - Prob. 4.3.10PACh. 4 - Prob. 4.3.11PACh. 4 - Prob. 4.3.12PACh. 4 - Prob. 4.3.13PACh. 4 - Prob. 4.3.14PACh. 4 - Prob. 4.3.15PACh. 4 - Prob. 4.3.16PACh. 4 - Prob. 4.3.17PACh. 4 - Prob. 4.3.18PACh. 4 - Prob. 4.3.19PACh. 4 - Prob. 4.4.1RQCh. 4 - Prob. 4.4.2RQCh. 4 - Prob. 4.4.3RQCh. 4 - Prob. 4.4.4RQCh. 4 - Prob. 4.4.5PACh. 4 - Prob. 4.4.6PACh. 4 - Prob. 4.4.7PACh. 4 - Prob. 4.4.8PACh. 4 - Prob. 4.4.9PACh. 4 - Prob. 4.4.10PACh. 4 - Prob. 4.2CTE
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.Similar questions
- Suppose that initially, the gasoline market is in equilibrium. War in the Middle East disrupts imports of oil into the United States shifting the supply curve to S2. The price of gasoline begins to rise, and consumers protest. The government intervenes and sets a price ceiling of $3 per gallon. Use the graph below to answer questions What are the original equilibrium price and quantity? What is the equilibrium price and quantity after the Middle East war begins (S2)? If the price ceiling is imposed, what will occur? A surplus or shortage? Suppose that initially, the gasoline market is in equilibrium. War in the Middle East disrupts imports of oil into the United States shifting the supply curve to S2. The price of gasoline begins to rise, and consumers protest. The government intervenes and sets a price ceiling of $3 per gallon. Use the graph below to answer questions 2a – 2d. How are suppliers affected?arrow_forwardSuppose that initially, the gasoline market is in equilibrium. War in the Middle East disrupts imports of oil into the United States shifting the supply curve to S2. The price of gasoline begins to rise, and consumers protest. The government intervenes and sets a price ceiling of $3 per gallon. Use the graph below to answer questions What is the original equilibrium price and quantity? What is the equilibrium price and quantity after the Middle East war begins (S2)? If the price ceiling is imposed, what will occur? A surplus or shortage? Are consumers better off with the price ceiling than without it? Explain. How are suppliers affected?arrow_forwardThe following graph shows the annual market for Florida oranges, which are sold in units of 90-pound boxes. (graph in photo) In this market, the equilibrium price is ____ per box, and the equilibrium quantity of oranges is ____ million boxes. For each of the prices listed in the following table, determine the quantity of oranges demanded, the quantity of oranges supplied, and the direction of pressure exerted on prices in the absence of any price controls. Price Quantity Demanded Quantity Supplied Pressure on Prices (Dollars per box) (Millions of boxes) (Millions of boxes) 35 15 True or False: A price ceiling above $25 per box is a binding price ceiling in this market. a. True b. False Because it takes many years before newly planted orange trees bear fruit, the supply curve in the short run is almost vertical. In the long run, farmers can decide whether to plant oranges on their land, to plant something…arrow_forward
- 1. Your econ professor would like to buy a Tesla X, but he cannot afford one. He __________ have a demand for a Tesla X. A. does B. does not 2. Which of the following would not change the supply of a good? A. A change in the price of the good. B. A change in the technology for producing the good. C. A change in the price of a resource required to produce the good. D. A change in the number of firms producing the good. E. A change in the government regulation of firms producing the good.arrow_forwardIn a market economy, supply determines demand and demand, in turn, determines prices. demand determines supply and supply, in turn, determines prices. the allocation of scarce resources determines prices and prices, in turn, determine supply and demand. supply and demand determine prices and prices, in turn, allocate the economy’s scarce resources.arrow_forwardThe table above shows the situation in the gasoline market in Tulsa, Oklahoma. If the price of a gallon of gasoline is $2.20, then A. there is a surplus of gasoline in Tulsa. B. there is a shortage of gasoline in Tulsa. C. the gasoline market in Tulsa is in equilibrium. D. Without more information we cannot determine if there is a surplus, a shortage, or an equilibrium in the gasoline market in Tulsa. E. There is neither a surplus nor a shortage, but the market is NOT in equilibrium.arrow_forward
- The demand for hamburgers is given by Qd = 8,000 – 7,000P, where Qd is the quantity demanded and P is the price. The supply for hamburgers is given by Qs = 4,000 + 1,000P, where Qs is the quantity supplied and P is the price. If the price is €1.0, will there be a surplus or a shortage of hamburgers? Determine the amount of a shortage (surplus).arrow_forwardIn the market for computers, the number of computer producers increases. At the same time, people’s income increase, and computers are a Normal Good. What would you predict happens to the equilibrium price and quantity in the market for computers? The equilibrium price decreases, and the change in equilibrium quantity is ambiguous The equilibrium price increases, and the change in equilibrium quantity is ambiguous The change in equilibrium price is ambiguous, and the equilibrium quantity decreases The change in equilibrium price is ambiguous, and the equilibrium quantity increasesarrow_forwardThe following graph shows the market for doctor's office visits. In this market, the central government provides health insurance to all consumers. The government insurance plan stipulates a copayment of $20 per doctor's office visit. That is, consumers pay $20 for each doctor's appointment, and the government pays the remainder. In the absence of the copayment plan, the equilibrium price would be ____ per doctor's office visit, and the equilibrium quantity would be _____ million visits per month. Under the copayment plan, the quantity of visits demanded by consumers is ______ million visits per month. Doctors are willing to supply this number of office visits at a price of ______ per visit. Therefore, the government will pay ______ per visit under the copayment scheme. In the absence of the copayment plan, total payments for visits to the doctor amount to ______ million per month. Under the copayment plan, total payments for visits to the doctor amount to _________…arrow_forward
- Listen to thisLinks to an external site. podcast about the market for human organs. https://www.npr.org/2008/05/21/90632108/should-we-legalize-the-market-for-human-organs Initial Response: Is there currently a surplus or shortage of human organs available for transplant? Using the demand/supply framework, explain how legalizing the trade for human organs will help move the market towards an equilibrium. Reply: Add to your original response by answering this question. What other product/market do you think should be legalized (or one that is currently legal and should not be) and why?arrow_forwardSuppose that a new production technology in the mining industry enables that every mine worker can extract the double amount of carbon. How does this affect the equilibrium price and quantity in the carbon market? How does this affect the equilibrium price and quantity in the market of crude oil for heating systems? Show graphs for supply and demand in order to illustrate your answer.arrow_forwardAssume gasoline is sold in a competitive market, the equilibrium price is $50 per barrel, and the equilibrium quantity is 1000 barrels. (a) Using the numerical values above, draw a correctly labeled graph of the gasoline market and show each of the following. (i) The equilibrium price (ii) The equilibrium quantity (b) At a price of $40 per barrel, will there be a surplus or a shortage in the market? Explain. (c) Assume new oil wells are discovered. On your graph from part (a), show how this change will affect the equilibrium price and quantity in the market for gasoline. (d) Assume instead there is an increase in the price of gasoline-operated automobiles. How will this change affect the market for gasoline? Explain. (e) If both changes in part (c) and part (d) occurred simultaneously, what will happen to the equilibrium price and quantity of gasoline?arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
Microeconomics: Principles & PolicyEconomicsISBN:9781337794992Author:William J. Baumol, Alan S. Blinder, John L. SolowPublisher:Cengage Learning
Microeconomics: Principles & Policy
Economics
ISBN:9781337794992
Author:William J. Baumol, Alan S. Blinder, John L. Solow
Publisher:Cengage Learning