Pearson eText Economics -- Instant Access (Pearson+)
13th Edition
ISBN: 9780136879459
Author: Michael Parkin
Publisher: PEARSON+
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Chapter 6, Problem 23APA
a)
To determine
Market for marijuana when no penalties are imposed.
b)
To determine
Impact on market outcome.
c)
To determine
Impact if penalty is imposed on the sellers.
d)
To determine
Impact if penalty is imposed on the buyers
e)
To determine
Marginal benefit.
f)
To determine
Benefit of legalization and
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4. What do you think would be the effect on the equilibrium price and quantity of marijuana as a result of its consumption being legalized?
Give reasons for your answer.
7. There is a road named High Street with 800m long. There are two grocery shops: Woolworths
located at the left end and Coles located at the right end. 4800 customers are uniformly
distributed along High Street. To make our life easier, assume both grocery stores sell the
same product, and consumers demand just one unit of the product. Traveling to a grocery
shop is costly, and the cost of traveling is 4 cents per meter. Suppose the price of the product
is $10 at Woolworths, and $12 at Coles. Then
customers will purchase
the product from Woolworths.
How do technologies affect changes in both supply and demand? Cite an example.
Do you agree that government intervention in the market can overcome market failure? Explain your answer and cite examples.
PRICE ELASTICITY: Given the quantity demanded and price for chicken, compute and determine if the elasticity of the commodity and the decision of the firm.
POINT
PRICE
QUANTITY DEMANDED FOR CHICKEN
A
100
10
B
90
20
INCOME ELASTICITY: Given the quantity demanded and price for chicken, compute and determine if the elasticity of the commodity and the decision of the firm.
POINT
INCOME
QUANTITY DEMANDED FOR CHICKEN IN KILO
A
20,000
8
B
25,000
10
CROSS ELASTICITY: Given the quantity demanded and prices for commodities below, compute and determine if the goods are either substitutes or complements.
GOOD
QD1
QD2
P1
P2
COFFEE
4
7
8
6
TEA
5
3
7
9
GOOD
QD1
QD2
P1
P2
JUICE
8
9
10
11
SOFTDRINK
6
7
9
12
Chapter 6 Solutions
Pearson eText Economics -- Instant Access (Pearson+)
Ch. 6.1 - Prob. 1RQCh. 6.1 - Prob. 2RQCh. 6.1 - Prob. 3RQCh. 6.1 - Prob. 4RQCh. 6.2 - Prob. 1RQCh. 6.2 - Prob. 2RQCh. 6.2 - Prob. 3RQCh. 6.2 - Prob. 4RQCh. 6.2 - Prob. 5RQCh. 6.3 - Prob. 1RQ
Ch. 6.3 - Prob. 2RQCh. 6.3 - Prob. 3RQCh. 6.3 - Prob. 4RQCh. 6.3 - Prob. 5RQCh. 6.4 - Prob. 1RQCh. 6.4 - Prob. 2RQCh. 6.4 - Prob. 3RQCh. 6.4 - Prob. 4RQCh. 6.4 - Prob. 5RQCh. 6.5 - Prob. 1RQCh. 6.5 - Prob. 2RQCh. 6.5 - Prob. 3RQCh. 6.5 - Prob. 4RQCh. 6 - Prob. 1SPACh. 6 - Prob. 2SPACh. 6 - Prob. 3SPACh. 6 - Prob. 4SPACh. 6 - Taxes (Study Plan 6.3) 5. The table in the next...Ch. 6 - Prob. 6SPACh. 6 - Prob. 7SPACh. 6 - Prob. 8SPACh. 6 - Prob. 9APACh. 6 - Prob. 10APACh. 6 - Prob. 11APACh. 6 - Prob. 12APACh. 6 - Prob. 13APACh. 6 - Prob. 14APACh. 6 - Prob. 15APACh. 6 - Prob. 16APACh. 6 - Prob. 17APACh. 6 - Prob. 18APACh. 6 - Prob. 19APACh. 6 - Prob. 20APACh. 6 - Prob. 21APACh. 6 - Prob. 22APACh. 6 - Prob. 23APA
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