(a)
Draw the demand and supply curve.
(a)
Explanation of Solution
Figure 1 illustrates the demand and supply curve of the Norwegian artist Edvard Munch’s ‘The scream’ when it sold for $119.9 million.
In Figure 1, the horizontal axis measures the quantity and the vertical axis measures the
Quantity demanded: The quantity demanded is the amount of a product that a household would buy in a given period if it could buy all it wanted at the current market price.
Quantity supplied: The quantity supplied is the amount of a particular product that a firm would be willing and able to offer for sale at a particular price during a given time period.
(b)
Draw the demand and supply curve.
(b)
Explanation of Solution
Figure 2 illustrates the demand and supply curve of the hog business in the U S.
In Figure 2, the horizontal axis measures the quantity and the vertical axis measures the price. In 2013, the supply of hogs decreases, which shifts the supply curve from
Quantity demanded: The quantity demanded is the amount of a product that a household would buy in a given period if it could buy all it wanted at the current market price.
Quantity supplied: The quantity supplied is the amount of a particular product that a firm would be willing and able to offer for sale at a particular price during a given time period.
(c)
Draw the demand and the supply curve.
(c)
Explanation of Solution
Figure 3 illustrates the demand and supply curve of the houseplants.
In Figure 3, the horizontal axis measures the quantity and the vertical axis measures the price. The increasing demand for plants shifts the demand curve of the Gasoline from
Quantity demanded: The quantity demanded is the amount of a product that a household would buy in a given period if it could buy all it wanted at the current market price.
Quantity supplied: The quantity supplied is the amount of a particular product that a firm would be willing and able to offer for sale at a particular price during a given time period.
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Chapter 4 Solutions
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