MACROECONOMICS FOR TODAY
10th Edition
ISBN: 9781337613057
Author: Tucker
Publisher: CENGAGE L
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Question
Chapter 4, Problem 9SQ
To determine
Impact of the fall in price for the rival firm on the opponent firm.
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Does a surplus or a shortage arise at the original price when
more firms produce
smartphones
?
A _______ arises at the original price that is eliminated _________.
A.
shortage
;
as the price
falls
B.
surplus
;
as demand
increases
C.
shortage
;
as demand
decreases
D.
surplus
;
as the price
falls
3. A heat wave in Las Vegas causes tourists to cancel their hotel room reservations and vacation elsewhere.
Select the correct answer
a. Which of the following will occur in the demand for Las Vegas hotel rooms?
-supply will increase
-demand will decrease
-demand will increase
-supply will decrease
b. Will the heat wave result in a shortage or surplus of Las Vegas hotel rooms at the previous price? Will the price of hotel rooms rise or fall?
-surplus, fall
-shortage, fall
-surplus, rise
-shortage, rise
Plot the below demand and supply schedule. A. What is the market equilibrium? B. Describe the situation at a price of $9. Describe the situation at a price of $3. What will occur? (Show both situations on your graph). If shortage or surplus, how will the price adjust?C. Suppose the government imposed a minimum price of $10. What would occur? Illustrate (show on your graph). Is the situation that results temporary or permanent? Explain D. Indicate what the price would have to be to represent an effective price ceiling (show on your graph). Is the shortage that results temporary or permanent? Explain
Price
Quantity Demanded
Quantity Supplied
$1
1000
200
$2
800
240
$3
700
300
$4
640
400
$5
600
600
$6
550
820
$7
520
1000
$8
460
1300
$9
400
1600
$10
300
1950
Chapter 4 Solutions
MACROECONOMICS FOR TODAY
Ch. 4.2 - Prob. 1YTECh. 4.2 - Prob. 2YTECh. 4.2 - Prob. 3YTECh. 4.2 - Prob. 4YTECh. 4.3 - Prob. 1YTECh. 4.3 - Prob. 2YTECh. 4 - Prob. 1SQPCh. 4 - Prob. 2SQPCh. 4 - Prob. 3SQPCh. 4 - Prob. 4SQP
Ch. 4 - Prob. 5SQPCh. 4 - Prob. 6SQPCh. 4 - Prob. 7SQPCh. 4 - Prob. 8SQPCh. 4 - Prob. 9SQPCh. 4 - Prob. 10SQPCh. 4 - Prob. 1SQCh. 4 - Prob. 2SQCh. 4 - Prob. 3SQCh. 4 - Prob. 4SQCh. 4 - Prob. 5SQCh. 4 - Prob. 6SQCh. 4 - Prob. 7SQCh. 4 - Prob. 8SQCh. 4 - Prob. 9SQCh. 4 - Prob. 10SQCh. 4 - Prob. 11SQCh. 4 - Prob. 12SQCh. 4 - Prob. 13SQCh. 4 - Prob. 14SQCh. 4 - Prob. 15SQCh. 4 - Prob. 16SQCh. 4 - Prob. 17SQCh. 4 - Prob. 18SQCh. 4 - Prob. 19SQCh. 4 - Prob. 20SQ
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Similar questions
- Explain why the following statement is false: In the goods market, no seller would be willing to sell for less than the equilibrium price.arrow_forwardIf the price is above line equilibrium level, would you predict a surplus or a shortage? If line price is below the equilibrium level, would you predict a surplus or a shortage? Why?arrow_forwardReview Figure 3.4. Suppose the price of gasoline is 1.60 per gallon. Is the quantity demanded higher or lower than at the equilibrium price of 1.40 per gallon? What about the quantity supplied? Is there a shortage or a surplus in the market? If so, how much? Figure 3.4 Demand and Supply of Gasolinearrow_forward
- Can you propose a policy that meld induce the market to supply more rental housing units?arrow_forward3 Questions for Picture 1  A. What is the equilibrium price in this market? At what price is there neither a shortage more surplus? Questions for graph, picture 2(B) Instructions: enter all numeric values without a minus sign. C. Hoe big is the surplus or shortage at $3.40? There is a “shortage (or?) surplus” of ______ thousand of bushels. How big is the surplus or shortage at $4.90? There is a “shortage (or?) surplus” of ______ thousand of bushels. D. How big a surplus or a shortage resort if the price is $.60 higher than the equilibrium price? ______ thousand of bushels E. How big a surplus or a shortage resort if the price is $.30 higher than the equilibrium price? ______ thousand of bushelsarrow_forward
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