ECON MICRO (with ECON MICRO Online, 1 term (6 months) Printed Access Card) (New, Engaging Titles from 4LTR Press)
5th Edition
ISBN: 9781305631946
Author: William A. McEachern
Publisher: Cengage Learning
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Question
Chapter 4, Problem 4.6P
To determine
Supply curve assumptions and the factors that shift the supply curve to the right.
Concept Introduction:
Supply curve shows all the possible combinations of price and quantity supplied of the good.
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Chapter 4 Solutions
ECON MICRO (with ECON MICRO Online, 1 term (6 months) Printed Access Card) (New, Engaging Titles from 4LTR Press)
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Similar questions
- Using Exercise 16.20, sketch the effects in parts (a) and (b) on a single supply and demand diagram. What prediction would you make about how the improved information alters the equilibrium quantity and price?arrow_forward24- Identify the statement that does not describe a supply curve. a. It shows various prices and quantity supplied b. It is a graph showing a direct relationship c. It shows a positive relationship d. It is in tabular formatarrow_forward20. Suppose you make jewellery. If the price of silver increases, what would we expect you to do? a. be willing and able to produce less jewellery than before at each possible price b. be willing and able to produce more jewellery than before at each possible price c. face a greater demand for your jewellery d. face a weaker demand for your jewelleryarrow_forward
- 3. Indicate how each of the following will affect the current supply (Increase supply or Decrease Supply) for personal computers. a) A rise in wage rates b) An increase in the number of sellers of computers c) A tax placed on the production of computers d) A subsidy placed on the production of computersarrow_forward13. How shifts in demand and supply affect equilibrium Consider the market for pens. Suppose that the number of students with an allergy to pencil erasers increases, causing more students to switch from pencils to pens in school. Moreover, the price of plastic, an important input in pen production, has dropped considerably. On the following graph, labeled Scenario 1, indicate the effect these two events have on the demand for and supply of pens. Note: Select and drag one or both of the curves to the desired position. Curves will snap into position, so if you try to move a curve and it snaps back to its original position, just drag it a little farther.arrow_forward6. Evidence suggests that soda and juice are substitutes in the minds of consumers. Furthermore, the producers of soda also tend to produce juice. Explain thoroughly what impact an increase in the price of soda will have on the price of juice and the quantity of juice bought and sold, as well as why those impacts occur.arrow_forward
- Scenario 2: The Ministry of health publishes a study finding that coffee drinking reduces the probability of getting cancer. How do you imagine this will affect the market for coffee? Why? Which determinant of demand or supply is being affected? Explain. Show graphically the changes in demand or supply. Will this change the equilibrium price and quantity of coffee? Explain your reasoning.arrow_forwardCoffee bean merchants notice that coffee prices are at a historic low today, but they expect the price of coffee beans to increase in the next six months. How will the situation affect the supply of coffee beans on the market today and next six month? Draw the graph to show this situation.arrow_forward7. Other things equal, which of the following would NOT shift the supply curve for gasoline? a. a fall in the price of crude oil (from which gasoline is refined). b. an increase in the price of gasoline. c. an improvement in refining techniques that allows more gasoline to be squeezed out of a barrel of crude oil. d. an increase in the wages paid to people working in oil refineries..arrow_forward
- 9. Shifts in supply or demand II The following graph shows the market for cakes in San Francisco, where there are over 1,000 bakeries at any given moment. Suppose cake sellers expect that tomorrow the price of cake will be significantly higher than today's price. Show the effect of this change on the market for cakes by shifting one or both of the curves on the following graph, holding all else constant. Note: Select and drag one or both of the curves to the desired position. Curves will snap into position, so if you try to move a curve and it snaps back to its original position, just drag it a little farther.arrow_forward1. With both words and diagrams analyze the effects on equilibrium price and quantity when a. demand is negatively sloped, supply is perfectly inelastic, and demand increases b. demand is negatively sloped, supply is quite elastic, and demand decreases c. demand is perfectly elastic, supply is positively sloped, and supply increases d. demand is quite inelastic, supply is positively sloped, and supply decreasesarrow_forward22. How the equilibrium price and equilibrium quantity would change in the following scenarios? First answer the question, then show the answer using supply and demand curves. a. Supply chain disruption has caused shortage in computer chips, which are used to make computers (obviously). The price of computer chips skyrocketed. How the equilibrium price and equilibrium quantity for computers will change? b. Due to the pandemic, Canadians start to prefer remote working, and are moving to cities with lower cost of living such as Winnipeg. How the equilibrium price and equilibrium quantity of houses will change in Winnipeg? (Assume the supply curve of houses in Winnipeg is vertical.) c. Canada has issued staying at home order and lock downs. Airlines are also forced to cut flights. How the equilibrium price and quantity of flights will change? d. Winter is coming and is colder than ever. Canada Goose, a winter clothing maker, finds a cheaper way to make winter clothing. How the…arrow_forward
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