ECON: MICRO4 (New, Engaging Titles from 4LTR Press)
4th Edition
ISBN: 9781285423548
Author: William A. McEachern
Publisher: Cengage Learning
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Question
Chapter 4, Problem 4.6PA
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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Students have asked these similar questions
11) Suppose that it is observed that the price of a commodity rises and that the quantity sold falls. From this we can deduce
A) that the demand curve has shifted to the left, but we cannot deduce whether or not the supply curve has shifted.
B) that the demand curve has shifted to the right, but we cannot deduce whether or not the supply curve has shifted.
C) that the supply curve has shifted to the right, but we cannot deduce whether or not the demand curve has shifted.
D) that the supply curve has shifted to the left, but we cannot deduce whether or not the demand curve has shifted
Question 2a: This one is specifically about natural gas! Please use the chart below to show three functions: the demand for natural gas, the supply of natural gas prior to the new natural gas discoveries (label it 2000), and the current supply of natural gas (label it this year). Further, on the chart show the year 2000 natural gas price and the current year price. For this question assume that there is no change in demand for natural gas from 2000 to this year.
2b. Look at the price changes you presented for natural gas in part a. For this question discuss how this price change could effect markets/products which rely heavily on natural gas. An example product that relies heavily on natural gas is electricity. (You can write about electricity or another product if you prefer.)
4-1 You have noticed that the price of season tickets to your university’s football matches keeps increasing but the supply of tickets remains the same. Why might supply be unresponsive to changes in price? In the longer term, would it be more responsive? How?
Chapter 4 Solutions
ECON: MICRO4 (New, Engaging Titles from 4LTR Press)
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