MyLab Economics with Pearson eText -- Access Card -- for Microeconomics
MyLab Economics with Pearson eText -- Access Card -- for Microeconomics
6th Edition
ISBN: 9780134125886
Author: R. Glenn Hubbard, Anthony Patrick O'Brien
Publisher: PEARSON
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Chapter 6, Problem 6.4.3PA

Sub part (a):

To determine

Whether lettuce or bread has higher price elasticity of demand.

Sub part (b):

To determine

cross elasticity of lettuce and other green vegetables.

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The following graph shows Musashi's weekly demand for cheesecake, represented by the blue line. Point A represents a point along his weekly demand curve. The market price of cheesecake is $3.00 per slice, as shown by the horizontal black line.   From the previous graph, you can tell that Musashi is willing to pay _____ for his 8th slice of cheesecake each week. Because he has to pay only $3.00 per slice, the consumer surplus he gains from the 8th slice of cheesecake is ________. Suppose the price of cheesecake were to fall to $2.25 per slice. At this lower price, Musashi would receive a consumer surplus of ______ from the 8th slice of cheesecake he buys. (Find answers by using graph)
Suppose the market for ice cream cones is made up of three​ consumers: Josh,​ Curt, and Tim. Complete the information in the following table to construct the market demand curve for ice cream cones.   Josh Curt Tim Market PRICE QUANTITY DEMANDED​ (CONES PER​ WEEK) QUANTITY DEMANDED​ (CONES PER​ WEEK) QUANTITY DEMANDED​ (CONES PER​ WEEK) QUANTITY DEMANDED​ (CONES PER​ WEEK) ​$1.75 3 0 0 nothing 1.50 6 2 1 nothing 1.25 8 3 2 nothing 1.00 9 5 3 nothing 0.75 11 6 4 nothing     Market Demand: Ice Cream Cones 036912151821240.000.250.500.751.001.251.501.752.00Quantity (cones per week)Price (dollars per cone)         interactive graph
The following graph shows Hilary's weekly demand for cheesecake, represented by the blue line. Point A represents a point along her weekly demand curve. The market price of cheesecake is $3.00 per slice, as shown by the horizontal black line From the previous graph, you can tell that Hilary is willing to pay $_______ for her 8th slice of cheesecake each week. Because she has to pay only$3.00 per slice, the consumer surplus she gains from the 8th slice of cheesecake is $_______. Suppose the price of cheesecake were to fall to $2.25 per slice. At this lower price, Hilary would receive a consumer surplus of $_______.from the 8th slice of cheesecake she buys.The following graph shows the weekly market demand for cheesecake in a small economy. Use the purple point (diamond symbol) to shade the area representing consumer surplus when the price (P) of cheesecake is $3.00 per slice. Then, use the green point (triangle symbol) to shade the area representing additional consumer surplus when the…

Chapter 6 Solutions

MyLab Economics with Pearson eText -- Access Card -- for Microeconomics

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