Microeconomics
11th Edition
ISBN: 9781260507140
Author: David C. Colander
Publisher: McGraw Hill Education
expand_more
expand_more
format_list_bulleted
Concept explainers
Question
Chapter 6, Problem 16QE
To determine
Identify the type of good.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solution
Students have asked these similar questions
Suppose that, in an attempt to entice citizens to conserve energy, the government enacted regulations requiring that all air conditioners be more efficient in their use of electricity. After this regulation was implemented, government officials were then surprised to discover that people used even more electricity than before.
Using the concept of price elasticity, which of the following statements best explains how this increase might have occurred?
multiple choice
Because the regulation effectively reduced the price of cool air, consumers with sufficiently elastic demand might have bought substantially more of it.
There is no way the observed change could have occurred if all consumers were fully informed, self-interested, and rational.
The government ignored the possibility that the demand curve for electricity might be upward sloping.
In practice, people often pay little attention to the relevant costs and benefits when deciding how much of a good, like electricity,…
The term “law of diminishing marginal utility” used in explaining downward sloping demand curves, others things constant, is best described by which of the following statements?
The total satisfaction you obtain from consuming a good tends to fall.
The average satisfaction you obtain from consuming a good tends to fall.
The additional satisfaction you obtain from consuming an additional unit of a good tends to fall.
The total satisfaction you obtain from the good tends to rise.
The table below shows two demand schedules for a given style of men’s shoe—that is, how many pairs per month will be demanded at various prices at a men’s clothing store in Seattle called Stromnord.
Price
D1 Quantity Demanded
D2 Quantity Demanded
$85
53
13
80
60
15
75
68
18
70
77
22
65
87
27
Suppose that Stromnord has exactly 70 pairs of this style of shoe in inventory at the start of the month of July and will not receive any more pairs of this style until at least August 1. Instructions: Enter your answers as whole numbers.a. If demand is D1, what is the lowest price that Stromnord can charge so that it will not run out of this model of shoe in the month of July?
What if demand is D2?
b. If the price of shoes is set at $85 for both July and August and demand will be D2 in July and D1 in August, how many pairs of shoes should Stromnord order if it wants to end the month of August with exactly zero pairs of shoes in its inventory?
What if the…
Chapter 6 Solutions
Microeconomics
Ch. 6.1 - If when price rises by 4 percent, quantity...Ch. 6.1 - Prob. 2QCh. 6.1 - Prob. 3QCh. 6.1 - Prob. 4QCh. 6.1 - Prob. 5QCh. 6.1 - Prob. 6QCh. 6.1 - Prob. 7QCh. 6.1 - Prob. 8QCh. 6.1 - Prob. 9QCh. 6.1 - Prob. 10Q
Ch. 6 - Determine the price elasticity of demand if, in...Ch. 6 - A firm has just increased its price by 5 percent...Ch. 6 - When tolls on the Dulles Airport Greenway were...Ch. 6 - Prob. 4QECh. 6 - Prob. 5QECh. 6 - Prob. 6QECh. 6 - Prob. 7QECh. 6 - Economists have estimated the following...Ch. 6 - Prob. 9QECh. 6 - A newspaper recently lowered its price from 5.00...Ch. 6 - Once a book has been written, would an author...Ch. 6 - Prob. 12QECh. 6 - Prob. 13QECh. 6 - Suppose average movie ticket prices are 8.50 and...Ch. 6 - Which of the following producers would you expect...Ch. 6 - Prob. 16QECh. 6 - Prob. 17QECh. 6 - Prob. 18QECh. 6 - Prob. 19QECh. 6 - Prob. 20QECh. 6 - Prob. 21QECh. 6 - Prob. 22QECh. 6 - Prob. 1QAPCh. 6 - Prob. 2QAPCh. 6 - Prob. 3QAPCh. 6 - Prob. 4QAPCh. 6 - Prob. 5QAPCh. 6 - Price elasticity is not just a technical economic...Ch. 6 - Prob. 1IPCh. 6 - Prob. 2IPCh. 6 - Prob. 3IPCh. 6 - Prob. 4IPCh. 6 - Prob. 5IPCh. 6 - In 2004, Congress allocated over 20 billion to...Ch. 6 - In 2004, (Congress allocated over 20 billion to...Ch. 6 - Prob. 8IPCh. 6 - Prob. 9IPCh. 6 - Prob. 10IP
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.Similar questions
- What term is used to describe goods that can replace each other to some extent, so that a rise in the price of one good leads to a higher quantity consumed of the other good, and vice versa? Complementary goods Normal goods Inferior goods Substitutesarrow_forwardQ71 If the price of a normal good changes, the income effect of the price change... a. Reinforces the substitution effect. b. Always be larger than the substitution effect. c. Opposes the substitution effect. d. Produces a positively sloped demand curve. e. Always be to increase quantity demanded. Clear my choicearrow_forwardLorena likes to play golf. The number of times per year that she plays depends on both the price of playing a round of golf as well as Lorena’s income and the cost of other types of entertainment—in particular, how much it costs to go see a movie instead of playing golf. The three demand schedules in the following table show how many rounds of golf per year Lorena will demand at each price under three different scenarios. In scenario D1 , Lorena’s income is $50,000 per year and movies cost $9 each. In scenario D2 , Lorena’s income is also $50,000 per year, but the price of seeing a movie rises to $11. And in scenario D3 , Lorena’s income goes up to $70,000 per year, while movies cost $11. a. Using the data under D1 and D2 , calculate the cross elasticity of Lorena’s demand for golf at all three prices. (To do this, apply the midpoints approach to the cross elasticity ofdemand.) Is the cross elasticity the same at all three prices? Are movies and golf substitute goods, complementary…arrow_forward
- The price of crayons has decreased and Shelly decides to buy fewer colored pencils. Shelly's preferences over crayons and colored pencils mean that: (Mark only one answer) Responses Crayons and colored pencils are inferior goods Crayons and colored pencils are normal goods Crayons and colored pencils are complements Crayons and colored pencils are substitutesarrow_forwardThe demand for brownie dishes is q(p)=361,201-(p+1)^2 where q is the number of dishes they can sell each month at a price of p cents. Use this function to determine a) the number of dishes they can sell each month if the price is 50 cents, b)the number of dishes they can unload each month if they give them away, and c)the lowest price at which they will be unable to sell any dishesarrow_forwardWhen there is a change in the price of a related good, demand increases or decreases depending on the relationship between the two goods. Two economic terms describe these two relationships-substitutes and complements. An increase in the price of Good A increases demand for Good B when the two goods are substitutes. An increase in the price of Good A decreases demand for Good B when the two goods are complements.The graph shows the shift in the demand for good B when the price of good A increases depending on whether the two goods are substitutes or complements. Pick from the bold choices below. pls look at the graph. In Mexico, NAFTA had the result of lowering the price of used cars. Consider the effect of the price of used cars on the demand for new cars in Mexico. When the price of used cars in Mexico fell the Mexican demand for new cars (Increase or decrease). This would cause the new car demand curve in Mexico to (Shift right or shift left). The price of new cars in Mexico would…arrow_forward
- An individual sets aside a certain amount of his income per month to spend on his two hobbies, collecting wine and collecting books. Given the information below, illustrate the demand curve for wine.arrow_forwardThe table below shows two demand schedules for a given style of men's shoe- that is, how many pairs per month will be demanded at various prices at a men's clothing store in Seattle called Stromnord. price D1 Quantity Demanded D2 Quantity Demanded $ 75 53 13 70 60 15 65 68 18 60 77 22 55 87 27 Suppose that Stromnord has exactly 65 pairs of this style of shoe in inventory at the satrt of the month of July and will not receive any more pairs of this style until at least August 1. Instructions: Enter your answers as whole numbers 1). If demand is D1 what is the lowest price that Stromnord can charge so that it will not run out of this model of shoe in the month of July? What if demand is D2? 2) If the price of shoes is set at $ 75 for both July and August and demand will be D2 in July and D1 in August, how many pairs of shoes should Stormnord order if it wants to end the month of August with exactly zero pairs of shoes in its inventory? What if the price is set at $ 55…arrow_forwardConsider the following: If the price per unit of good A is P175 quantity purchased is valued at 5,250 units and quantity supplied equals 2,500 units. If price changes by P1, quantity demanded changes by 4 units for consumer demand and quantity supplied changes by 2 units. Graph demand and supply curves on one set of axes and highlight the following: price intercepts of demand and supply curves, quantity-intercepts of demand and supply curves, and the equilibrium point. (Make sure to LABEL your graph accordingly.)arrow_forward
- Lorena likes to play golf. The number of times per year that she plays depends on both the price of playing a round of golf as well as Lorena’s income and the cost of other types of entertainment—in particular, how much it costs to go see a movie instead of playing golf. The three demand schedules in the table below show how many rounds of golf per year Lorena will demand at each price under three different scenarios. In scenario D1, Lorena’s income is $50,000 per year and movies cost $9 each. In scenario D2, Lorena’s income is also $50,000 per year, but the price of seeing a movie rises to $11. And in scenario D3, Lorena’s income goes up to $70,000 per year, while movies cost $11. a. Using the data under D1 and D2, calculate the cross-elasticity of Lorena’s demand for golf at all three prices. (To do this, apply the midpoints approach to the cross-elasticity of demand.) Is the cross-elasticity the same at all three prices? Are movies and golf substitute goods, complementary goods, or…arrow_forwardExplain why you think that the demand of one product may diminish as prices are increasedarrow_forwardThe UAW strike kicked off in the middle of September 2023. As a result, potentially 146,000 auto workers who work for Ford, GM, and Stelllantis could walk off their jobs. The three companies are major producers of traditional gas cars in the U.S. In the meantime, Tesla, the major producer of electric cars, announced another round of price reductions recently for its major models. Assume that the traditional gas car and electric car are substitutes in consumption. Use the supply and demand graph to illustrate how these events would affect the market for traditional gas cars. In particular, what would happen to the equilibrium price and equilibrium quantity of traditional cars? Explain in words the changes in the supply and/or.arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
Exploring EconomicsEconomicsISBN:9781544336329Author:Robert L. SextonPublisher:SAGE Publications, Inc
Economics (MindTap Course List)EconomicsISBN:9781337617383Author:Roger A. ArnoldPublisher:Cengage Learning
Exploring Economics
Economics
ISBN:9781544336329
Author:Robert L. Sexton
Publisher:SAGE Publications, Inc
Economics (MindTap Course List)
Economics
ISBN:9781337617383
Author:Roger A. Arnold
Publisher:Cengage Learning