Suppose the supply curve for open-heart surgery is vertical at a hospital for heart conditions. If the demand for open-heart surgeries increases, what would happen to the equilibrium price of open-heart surgery O The equilibrium price will increase due to an increase in quantity demanded O The equilibrium price will decrease due to a decrease in supply and fixed demand O The equilibrium price will increase due to an increase in demand and fixed supply O The equilibrium price will decrease due to an increase in supply and fixed demand

Suppose the supply curve for open-heart surgery is vertical at a hospital for heart conditions. If the demand for open-heart surgeries increases, what would happen to the equilibrium price of open-heart surgery O The equilibrium price will increase due to an increase in quantity demanded O The equilibrium price will decrease due to a decrease in supply and fixed demand O The equilibrium price will increase due to an increase in demand and fixed supply O The equilibrium price will decrease due to an increase in supply and fixed demand

MACROECONOMICS

14th Edition

ISBN:9781337794985

Author:Baumol

Publisher:Baumol

Chapter4: Supply And Demand: An Initial Look

Section: Chapter Questions

Problem 3TY

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The following graph plots a supply curve for some hypothetical good. PRICE (Dollars per unit) 270 135 0 Between V and W 12.5 QUANTITY (Units) O True O False Y 40 45 Supply For each of the regions, use the midpoint method to identify whether the supply of this good is elastic or inelastic. Region Elastic Inelastic Between X and Y O O ? True or False: As firms reach near maximum capacity at high levels of quantity supplied, supply becomes more elastic because firms may need to invest in additional capital in order to further increase production.
The following graph shows the demand for a good. 1 PRICE (Dollars per unit) Region Between W and X Between X and Y Between Y and Z For each of the regions listed in the following table, use the midpoint method to identify if the demand for this good is elastic, (approximately) unit elastic, or inelastic. QUANTITY (Units) Elastic O O O O True O False W Demand (?) Inelastic Unit Elastic O O O O O O True or False: The slope of the demand curve equal to the value of the price elasticity of demand.
When the demand curve shifts to the left and the supply curve shifts to the right -- and the shift of the demand curve is dominant -- we can say that: (Note: In the answer options, "ambiguous" is another word for undefined/unknown.) O the change in quantity is ambiguous but price definitely will fall equilibrium price will fall while equilibrium quantity will rise O the change in price is ambiguous but quantity definitely will fall O both equilibrium price and quantity will fall
les of Macroeconomics - Spring21 Which of the following statements is CORRECT? Select one: O a. A change in the quantity demanded means a shift in the demand curve. O b. Achange in demand means a movement along the demand curve. O c. Achange in demand and change in quantity demanded means the same thing. O d. Achange in demand means a shift in the demand curve while change in the quantity demanded means a movement along the demand curve. NEXT PAGE
Suppose that California wildfires destroy one-third of the grape crop in the state. What would be the expected effect on the market for raisins? O increase in equilibrium price, increase in equilibrium quantity O decrease in equilibrium price, increase in equilibrium quantity decrease in equilibrium price, decrease in equilibrium quantity no change in the market for raisins increase in equilibrium price, decrease in equilibrium quanttiy
The market demand for productXis given by: \[ Q_{d}=6-1 / 2 P \text { or } P d=12-2 Q \] The market supply for goodXis given by: \[ Q_{s}=-14+2 P \text { or } P s=7+1 / 2 Q \] whereP=price per unit andQis number of units. Draw a supply-and-demand graph with these curves. 1.) Using the line drawing tool, draw the supply and demand curves. Properly label your lines. 2.) Using the point drawing tool, plot the equilibrium point. Label your point 'E'. Note: Carefully follow the instructions above and only draw the required objects. The equilibrium price is$and the equilibrium quantity is unit(s). (Enter your responses as integers.) A per-unit excise tax is imposed on suppliers of productX, and the market supply with the tax is now given by: \[ Q_{s}=-19+2 P \text { or } P s=9.50+1 / 2 Q \] Using the graph on the right, show this supply curve. 1.) Using the line drawing tool, draw the new supply curve. Label your line 'S1+tax'.1. Note: Carefully follow the instructions above and only draw…
The following graph plots a supply curve for some hypothetical good. PRICE (Dollars per unit) 450 225 37. Region Between X and Y Between V and W V True i w I 12.5 False For each of the regions, use the midpoint method to identify whether the supply of this good is elastic or inelastic. Elastic Inelastic QUANTITY (Units) O 40 45 Supply ? True or False: As firms reach near maximum capacity at high levels of quantity supplied, supply becomes less elastic because firms may need to invest in additional capital in order to further increase production.
Demand is Q = 600 − 2P; Supply is Q = 30 + P. What are the equilibrium price andquantity? What would the new equilibrium price and quantity be if demand wereto fall to Q = 300 − 2P??
Using the supply and demand equations given below: Demand Qd = 25 – 2PSupply Qs = 1 + P If the price falls from $8 to $7:a. Compute for the own price arc elasticity of demand. Provide an economic interpretationof your computed value (this is different from what is asked next) and classify the good according tothe type of elasticity. b. Compute for the price elasticity of supply. Provide an economic interpretation of yourcomputed value and classify the good according to the type of elasticity. 1. What is the relationship between total revenue and own-price elasticity of demand? 2. Illustrate a situation when the producer of a good will have a greater tax incidence than a consumer.What does elasticity have to do with tax incidence?
suppose a professional basketball game is to be played at a suburban arena, which increases demand for parking on the night of the game. If the suburban area has the ability to create additional parking during periods of peak demand, then O A the supply of parking will be more elastic and the price of parking wil increase by a relatively large amount the night of the game. O B the supply of parking wil be more elastic and the price of parking wil increase by arelatively small amount the night of the game the supply of parking wil be more inelastic and the price of parking will not change the night of the game o D, the supply of parking wil be more inelastic and the price of parking will increase by a small amount the night of the game. relatively o E. the supply of Paking will be perfectly elastic and the price of parking will increase by a relatively large amount the night of the game.
While analyzing the semiconductor industry you notice that when the price of ultrapure water rises 2%, the demand for chip grade silicon declines 8%. From this data what appears to be true? O A Chip grade silicon is a substitute to Ultrapure water with a cross-price elasticity of +4. O B. Chip grade silicon is a complement to Ultrapure water with a cross-price elasticity of +0.25 O C. Chip grade silicon is a complement to Ultrapure water with a cross-price elasticity of-4. O D. Chip grade silicon is a substitute to Ultrapure water with a cross-price elasticity of -0.25
Consider the market for pizza in a large city. Assuming that pizza is a normal good and the price elasticity of demand for pizza is 1.20, which if the following statements is correct if the wages for pizza workers rise? O The equilibrium price is expected to decrease, the equilibrium quantity is expected to decrease, and total consumer expenditures are expected to decrease. O The equilibrium price is expected to increase, the equilibrium quantity is expected to decrease, and total consumer expenditures are expected to increase. O The equilibrium price is expected to decrease, the equilibrium quantity is expected to increase, and total consumer expenditures are expected to increase. O The equilibrium price is expected to increase, the equilibrium quantity is expected to decrease, and total consumer expenditures are expected to decrease. 20 MacBook Ai 吕口 F3 esc F1 F2 @ $ % 3 5 Q W E tab D F G s lock < AA