MyLab Economics with Pearson eText -- Access Card -- for Foundations of Economics
8th Edition
ISBN: 9780134518312
Author: Robin Bade, Michael Parkin
Publisher: PEARSON
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Question
Chapter 4, Problem 7MCQ
To determine
To explain:
The option that correctly identifies the effect on the market for used cars and on the market for hybrids.
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Students have asked these similar questions
If the demand for Halloween candy is increasing and the number of sellers selling the candy is also increasing by more than the demand, then what will happen to price and quantity sold of candy in October as compared to September: Think about Supply and Demand when answering question, there is No opinion needed here. :
A.
Price of the candy will be higher and amount of candy sold is higher.
B.
The price will be same in October and September and quantity sold will be less.
C.
The price will be lower and quantity sold is higher in October than in September.
D.
The price will be higher and quantity sold will be the same as previous month of September.
E.
There is More information needed, to determine what happens to the Price and quantity sold .
1. If the market consists of Michelle Laura and Hillary and the price falls by one dollar the quantity demanded in the market increases by how much?
2. if the market consists of Michelle and Laura only and the price falls by one dollar the quantity demanded in the market increases by how much?
a) Draw a demand curve for cars. What happens to it in each of the following scenarios? Why?
Car dealerships slash prices by 10%
Prices of public transportation goes down
A recession leads to falling household incomes
b) Other things remaining the same, what would happen to the supply of a particular commodity if the following changes occur?
1. The price of the commodity decreases.
2. The prices of inputs used to produce the commodity increase.
3. The price of a commodity that is a substitute in production decreases.
Chapter 4 Solutions
MyLab Economics with Pearson eText -- Access Card -- for Foundations of Economics
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- 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_forwardPlease answer these 2 questions for me. Thanks There are many buyers and sellers in the market for trumpets. 1. If trumpets are normal goods, explain what will happen to price and quantity of trumpets when income in the economy increases. 2. Now assume that there are many new trumpet producers in the market. Explain what will happen to the price and quantity of trumpets and in the market.arrow_forwardPROMPT: 900,000 800,000 700,000 600,000 500,000 400,000 300,000 200,000 100,000 Price (dollars per house) 0 2 $ 6 3 5 Quantity millons of houses) The figure shows the market for new homes at the end of 2022. Virtually everyone requires a mortgage-a loan-to buy a home. In 2023, the interest rate paid on mortgages rose significantly. Consequently, at every price the quantity of new homes demand changed by 3 million. The market was in equilibrium in 2022 and 2023. You will be asked several questions about this situation. At the end of 2022, what was the allocatively efficient quantity of new homes? ustrate how the market (that is the demand and supply) for new homes changed in 2023 In 2023, what is the equilibrium price and quantity of new homes? What is the allocatively efficient quantity? What is the amount of consumer surplus? is there a deadweight loss?arrow_forward
- 1. New advances in recycling technology reduce the cost of producing paper made from recycled material. SELECT THE CORRECT ANSWER a. Which of the following will occur in the market for paper made from recycled material? -supply will decrease -supply will increase -demand will decrease -demand will increase b. Will the advancement in recycling technology result in a shortage or surplus of paper made from recycled material at the previous price? Will the price of paper made from recycled material rise or fall? -surplus, rise -shortage, rise -shortage, fall -surplus, fallarrow_forward1) Consider the market for tires. Suppose the price of raw rubber increases. What is the expected effect in the market for tires? Group of answer choices the equilibrium price will rise; equilibrium quantity will fall the equilibrium price will fall; equilibrium quantity will rise the equilibrium price will fall; equilibrium quantity will fall the equilibrium price will rise; equilibrium quantity will rise 2) Consider the market for tires. Suppose the price of gas drops and remains low for many years. Consequently, people drive more often. What is the expected effect in the market for tires? Group of answer choices the equilibrium price will rise; equilibrium quantity will fall the equilibrium price will fall; equilibrium quantity will rise the equilibrium price will fall; equilibrium quantity will fall the equilibrium price will rise; equilibrium quantity will rise 3)The diagram below represents the market for battery packs. The equilibrium price and…arrow_forwardSupply and Demand: End of Chapter Problem a. When the price of olive oil goes up, what probably happens to the demand for corn oil? The demand for corn oil . b. When the price of petroleum goes up, what probably happens to the demand for natural gas? To the demand for coal? To the demand for solar power? The demand for natural gas . The demand for coal . The demand for solar powearrow_forward
- 16 please quickly thanks !!!! A recent severe drought likely "destroys most of the rice cultivation." This situation would likely causethe: A. demand curve to shift right and supply curve to shift left. B. demand curve to shift left and the supply curve to shift right. C. price of rice to go up and quantity purchased to go down. D. Price and quantity movements are uncertain.arrow_forwardOther things constant, a decrease in the demand for hair dryers will a.increase the demand for hair dryer manufacturing workers. b.increase the price of hair dryers. c.decrease the demand for hair dryer manufacturing workers. d.increase the quantity supplied of hair dryers.arrow_forward3. Consider the market for minivans. For each of the events listed here, identify which of the determinants of demand or supply are affected. Also indicate whether demand or supply is increased or decreased. Then show the effect on the price and quantity of minivans. a. People decide to have more children.Problems and Applications86 The Market Forces of Supply and Demand TLFeBOOKCHAPTER 4 THE MARKET FORCES OF SUPPLY AND DEMAND 91b. Astrike by steelworkers raises steel prices. c. Engineers develop new automated machinery for the production of minivans. d. The price of station wagons rises. e. Astock-market crash lowers people’s wealth.arrow_forward
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