Microeconomics: Private and Public Choice (MindTap Course List)
15th Edition
ISBN: 9781285453569
Author: James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher: Cengage Learning
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Question
Chapter 9, Problem 8CQ
To determine
Short run and long run supply curves of a perfect competitive firm.
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Check out a sample textbook solutionStudents have asked these similar questions
Identify and explain the various factors that can cause a shift in the supply curve for a specific product or industry. Discuss the short-term and long-term implications of these shifts on market equilibrium and pricing.
Suppose cowboy boots and leather vests are complements. If the price of
cowboy boots increases significantly, what should we expect to happen to
the supply curve for leather vests in the short run?
We expect the supply curve to shift right.
We shouldn't expect anything in particular to happen to the supply curve.
We expect the supply curve to shift left.
Describe how the elasticity of demand behaves in the long run?
Chapter 9 Solutions
Microeconomics: Private and Public Choice (MindTap Course List)
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- Explain the logic that guides the construction of a linear supply function.arrow_forwardIn a competitive market, are market supply curves typically more elastic in the short run or in the long run? Explain within 40 words.arrow_forwardThe following graph displays four supply curves (HH, II, JJ, and KK) that intersect at point A. 200 180 160 140 B 120+ A 100 80 40 K 20 20 40 60 80 100 120 140 160 180 200 QUANTITY (Units) Using the graph, complete the table that follows by indicating whether each statement is true or false. Statement True False Between points A and D, curve JJ is elastic. Between points A and E, curve HH is unit elastic. Curve JJ is more elastic between points A and D than curve KK is between points A and C. PRICE (Dolars per unit) O ooarrow_forward
- When looking at Say's law, which of the following is true? The focus is on the short run. Every sale represents income. It is demand driven. Supply creates its own supply.arrow_forwardwhen there is an increase in the cost of producing a good or service this will cause the supply curve to shift up and to the left true or falsearrow_forwardThe following graph shows the short-run supply curve for apricots. Place the orange line (square symbol) on the following graph to show the most likely long-run supply curve for apricots. (Note: Place the points of the line either on H and K or on H and N.) PRICE (Dollars per pound) 12 10 0 D Short-Run Supply 2 10 QUANTITY (Thousands of pounds of apricots) 12 Long-Run Supply ?arrow_forward
- A chain of electronic stores sells hand-held color televisions. The weekly demand and supply models are given below. N is the number of televisions sold or supplied per week in the respective model and p is the price of the television. a. How many hand-held televisions can be sold and supplied at $144 per television? b. Find the price at which supply and demand are equal. At this price, how many televisions can be supplied and sold each week? N = −7p+1134 Demand model. N = 3.5p Supply model.arrow_forwardThe short-run supply of rental cars is (nearly) perfectly inelastic. Explain why. Your response should relate to the types of the costs rental car companies face in the short run.arrow_forwardWhat is the direction of a perfectly elastic supply curve? horizontal vertical downward sloping to the left upward sloping to the rightarrow_forward
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