Macroeconomics
13th Edition
ISBN: 9781337617390
Author: Roger A. Arnold
Publisher: Cengage Learning
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Question
Chapter 4.1, Problem 2ST
To determine
The impact of price on the incentive to produce.
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Is introducing a minimum price a better way of reducing consumption than trying to change peoples’ attitudes?
If people can't afford the equilibrium price for a good, would it be a good idea for the government to force the producer to produce it and give it to the poor people? Why or why not?
If the economy goes into a recession and income fall, what happen in the market for inferior good?
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- 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?arrow_forwardIf the government increases the excise tax on a gallon of gasoline we can expect the supply curve to shift rightward, quantity demanded to fall, and price to rise. True or Falsearrow_forwardA market supply curve shows how the total quantity supplied of a good varies as  a. price of the nearest substitute good varies b. supply of that good varies c. price of that good varies d. demand of that good variesarrow_forward
- Identify equilibrium on the graph. How much would the individual seller be willing to supply at a market price of $1.50? If the market price is $3.00, how many units will be supplied in the market? If the market price changes from $0.50 to $3.00, what should firms do?arrow_forwardHow price equilibrium is achieved?arrow_forwardin 2015 the average price of housing was $326,000 and went up to almost $500,000 in the last year. How does the rationing function and the guiding function work in this market?arrow_forward
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