Exploring Macroeconomics
8th Edition
ISBN: 9781544363332
Author: Robert L. Sexton
Publisher: Sage Publications
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Question
Chapter 4, Problem 4P
To determine
The demand schedule for the market and the market demand curve.
Expert Solution & Answer
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Students have asked these similar questions
Suppose that you, Jennifer, and Yusef constitute the market for
CDs. Your demand for CDs is illustrated in the graph to the right
(D₁), along with Jennifer's demand (D₂) and Yusef's demand (D3).
Using the line drawing tool, construct the market demand curve for
CDs. To do this, you will need to use three line segments labeled
Dsegment 1 Dsegment 2, and Dsegment 3.
Carefully follow the instructions above, and only draw the required
objects.
COLLE
Price of CDs
307
284
26-
24-
22-
20-0₂
184
16-
14-
12-
10-
84
64
44
NA
2-
0-
0 2 4 6 8 10 12 14 16 18 20 22 24 26 28 30
Quantity of CDs
(0,28)
Q
OU
The following graph shows the demand curve for a group of consumers in the U.S. market (blue line) for tablets. The market price of a tablet is shown by the black horizontal line at $80.
Each rectangle you can place on the following graph corresponds to a particular buyer in this market: orange (square symbols) for Larry, green (triangle symbols) for Megan, purple (diamond symbols) for Raphael, tan (dash symbols) for Susan, and blue (circle symbols) for Alex. Use the rectangles to shade the areas representing consumer surplus for each person who is willing and able to purchase a tablet at a market price of $80. (Note: If a person will not purchase a tablet at the market price, indicate this by leaving his or her rectangle in its original position on the palette.)
sub= 24
Chapter 4 Solutions
Exploring Macroeconomics
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- The following graph shows the supply curve for a group of sellers in the U.S. market for tablets (orange line). Each seller has only one tablet to sell. The market price of a tablet is shown by the black horizontal line at $175. Each rectangle on the graph corresponds to a particular seller in this market: blue (circle symbols) for Sam, green (triangle symbols) for Teresa, purple (diamond symbols) for Andrew, tan (dash symbols) for Beth, and orange (square symbols) for Darnell. (Note: The name labels are to the right of the corresponding segment on the supply curve.) Use the rectangles to shade the areas representing producer surplus for each person who is willing to sell a tablet at a market price of $175. (Note: If a person will not sell a tablet at the market price, indicate this by leaving his or her rectangle in its original position on the palette.) 400 350 Sam Darnell 300 250 Teresa Beth 200 Market Price Andrew 150 Andrew 100 Teresa Beth 50 Sam Damell QUANTITY (Tablets) Based on…arrow_forwardConsider a farmer that produces both white and brown rice. It is discovered that the demand for brown rice is relatively more inelastic compared to the demand for white rice. Initially the price of both white and brown rice is the same and the farmer produces the same quantity of white and brown rice. Now there is an improvement in agricultural technologies that affect both white and brown rice equally. Employ the demand and supply model to compare and contrast the effects on the equilibrium price and quantity of both white and brown rice from the technological improvement. Explain the effects on the farmer's revenue from both types of rice after the change in technology and support your answers with one suitable market diagram. In addition, discuss the situation where the improvement in technology may be detrimental to the producers. Please provide one suitable market diagramarrow_forwardThe demand schedule given below illustrates the quantity demanded by two individual consumers in the market for hot dogs. Both Larry and Harry are consumers of hot dogs and make up the entire market. Price per Hot Dog $1.80 0.20 Quantity Quantity Total Market Demanded Demanded Demand by Larry by Harry 20 35 25 45 ? ? 1.) Using the line drawing tool, draw a demand curve for each individual. Properly label each line. 2.) Using the line drawing tool, draw the market demand curve. Properly label this line. Note: The endpoints of the curves must match the data provided in the table. Carefully follow the instructions above and only draw the required objects. Price per unit ($) 2.00 1.80- 1.60- 1.40- 1.20- 1.00- 0.80- 0.60- 0.40- 0.20- 0.00+ 0 10 20 Hot Dogs 30 40 50 60 70 Quantity per month 80 90 100arrow_forward
- The market for lemon has 10 potential consumers, each having an individual demand curve P = 101 - 10Qi, where P is price in dollars per cup and Qi is the number of cups demanded per week by the ith consumer. Find the market demand curve using algebra. Draw an individual demand curve and the market demand curve. What is the quantity demanded by each consumer and in the market as a whole when lemon is priced at P = $1/cup?arrow_forwardExplain, with the aid of a graph, how a negative research finding about the impact of homemade masks on peoples’ health will affect the demand for homemade masksarrow_forwardThe buyers side of the market for laser tag tickets consists of two types of consumers who demand curves are shown below. 18 24 48 Tickets/yr Tickets/yr a. Graph the market demand curve on the graph below. Label everything (use units of 4 for the x-axis so it fits). Hint: It is helpful to determine the equations of the lines using y=mx+b for each so you can plug in prices and get quantities or plug in quantities and get price. b. Shade in the region that represents the total consumer surplus in the amusement park if tickets sell for $12 each. Price ($/ticket) Price ($/ticket)arrow_forward
- Consider the market for hyperbaric chambers. The market price of each typerbaric chamber is $110,000, and each consumer demands no more than one hyperbaric chamber. Suppose that Hubert is the only consumer in the hyperbaric chamber market. Their willingness to pay for a hyperbaric chamber is $275,000. Based on Hubert's willingness to pay, the following graph shows his demand curve for hyperbaric chambers, Shade the area representing Hubert's consumer surplus using the green rectangle (triangle symbols). PRICE (Thousands of dolla 4400 275 A 220 305 11 Hubert's Demand Market Price Hubert's Consumer Surplusarrow_forwardSuppose that you, Julio, and Yusef constitute the market for CDs. Your demand for CDs is illustrated in the graph to the right (D₁), along with Julio's demand (D₂) and Yusef's demand (D3). Using the line drawing tool, construct the market demand curve for CDs. To do this, you will need to use three line segments labeled Dsegment 1, Dsegment 2, and Dsegment 3- Carefully follow the instructions above, and only draw the required objects. Price of CDs 30 D3 28- 26- 24- 22- 20-92 18+ 16- 14- 12- 10-01 8- 6- 4 2- 0- 0 2 4 6 8 10 12 14 16 18 20 22 24 26 28 30 Quantity of CDsarrow_forwardSuppose that you, Jennifer, and Yixiu constitute the market for CDs. Your demand for CDs is illustrated in the graph to the right (D,), along with Jennifer's demand (D2) and Yixiu's demand (D3) 30D3 28- 28- 24 22- 20JD. Using the line drawing tool, construct the market demand curve for CDs. To do this, you will need to use three line segments labeled Dsament 1 Dseament 2 and Dsegment 3- 18- Carefully follow the instructions above, and only draw the required objects. 16- 14- 12- 10- 6- 4 6 10 12 14 16 18 20 22 24 26 28 30 Quantity of CDs 0 Price of CDsarrow_forward
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