Economics: Principles & Policy
14th Edition
ISBN: 9781337912679
Author: William J. Baumol; Alan S. Blinder; John L. Solow
Publisher: Cengage Learning US
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Question
Chapter 4, Problem 9TY
(a)
To determine
Calculate equilibrium price and quantity.
(b)
To determine
Calculate equilibrium price and quantity in new demand function.
(c)
To determine
Calculate equilibrium price and quantity in new supply function.
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Students have asked these similar questions
Suppose that the table on the right shows the quantity demanded of UGG boots at five different prices in
2014 and in 2015.
Which of the following variables could cause the quantity demanded of UGG boots to change as indicated
from 2014 to 2015? (Check all that apply.)
A. An increase in the price of UGG boots
B. A decrease in the price of a substitute good
C. A decrease in the number of buyers
D. The expectation that UGG boots will rise in price
Price
$160
170
180
190
200
Quantity
Demanded
2014
5000
4500
4000
3500
3000
Quantity
Demanded
2015
4000
3500
3000
2500
2000
Suppose that the demand and supply of liter of petrol are given in table 1 below:
Price (RM)
Quantity demanded (liter per day)
Quantity supplied (liter per day)
0.80
8
24
0.75
10
22
0.70
12
20
0.65
14
18
0.60
16
16
0.55
18
14
Table 1
What is the equilibrium price and quantity of petrol, use a graph paper to draw a demand curve and supply curve based on the table
The following table shows the annual demand and supply in the market for ice cream in Houston.
Price
Quantity Demanded
Quantity Supplied
(Dollars per gallon of ice cream)
(Gallons of ice cream)
(Gallons of ice cream)
4
2,000
200
8
1,600
600
12
1,200
800
16
800
1,200
20
400
1,800
On the following graph, plot the demand for ice cream using the blue point (circle symbol). Next, plot the supply of ice cream using the orange point (square symbol). Finally, use the black point (plus symbol) to indicate the equilibrium price and quantity in the market for ice cream.
Chapter 4 Solutions
Economics: Principles & Policy
Knowledge Booster
Similar questions
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