Study Guide for Microeconomics
9th Edition
ISBN: 9780134741123
Author: Robert Pindyck, Daniel Rubinfeld
Publisher: PEARSON
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Question
Chapter 9, Problem 4E
(a)
To determine
(b)
To determine
Identify the new equilibrium price and quantity.
(c)
To determine
Identify the gain from the program.
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Is the following statement true or false? “In the goods market, no buyer would be willing to pay more than the equilibrium price.” Why might a buyer be willing to pay more than the equilibrium price for a good? If some buyers are willing to pay more than the equilibrium price for a good, why do we expect sellers to charge only the equilibrium price in a competitive market?
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The following two linear functions represent a market (thus one is a supply function, the other a demand function). Circle the answer closest to being correct. Approximately what will the quantity demanded be if the government controls the market price to be $3.00 (You must first find the market equilibrium price and quantity in order to see how the $3.00 relates to them)?
Q = 100 – 4.6P and Q = 75 + 6.2P
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Chapter 9 Solutions
Study Guide for Microeconomics
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