EBK INTERMEDIATE MICROECONOMICS AND ITS
12th Edition
ISBN: 9781305176386
Author: Snyder
Publisher: YUZU
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Question
Chapter 1, Problem 5RQ
To determine
To analyze the fallacies using the interaction of demand and supply.
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Suppose that the quantity of corn supplied depends on the price of corn (P) and the amount of rainfall (R). The demand for corn depends on the price of corn and the level of disposable income (I). The equations describing the supply and demand relationships areĀ QsĀ = 20RĀ + 100PĀ andĀ QdĀ = 4000 ā 100PĀ + 10I.
a)Ā Ā Ā Ā Ā Sketch a graph of demand and supply curves
b)Ā Ā Ā Ā Ā Sketch a graph that shows the effect of anĀ increaseĀ in rainfall on the equilibrium price and quantity of corn.
c)Ā Ā Ā Ā Ā Sketch a graph of demand and supply curves that shows the effect of aĀ decreaseĀ in disposable income on the equilibrium price and quantity of corn.
Suppose goods X and Y are complimentary products.Ā Which of the following are correct with respect to the competitive market model of supply and demand? (check all that apply)
an increase in the price of good Y will cause an increase in demand for good X and reduce the quantity demanded for good Y
an increase in the price of good Y will cause a decrease in demand for good X and reduce the quantity demanded for good Y
a decrease in the price of good X will increase the quantity demanded for good X and cause a decrease in demand for good Y
a decrease in the price of good X will increase the quantity demanded for good X and cause an increase in demand for good Y
Ethanol, a fuel, is made from corn. Ethanol production increased 5.5 times from
2000 to 2008 and another 34% from 2008 to February 2013 (www.ethanolrfa.org).
What effect did this increased use of corn for producing ethanol have on the price
of corn and the consumption of corn as food?
1.) Use the line drawing tool to draw either a new demand curve (D2) or a new
supply curve (S,) that shows how the increased use of corn for producing ethanol
affects the market for corn as food, Properly label this line.
2.) Use the point drawing tool to indicate the new market equilibrium. Label this
point 'e2'.
Carefully follow the instructions above, and only draw the required objects.
What happens to the equilibrium price and equilibrium quantity of corn as food?
In the market for corn as food, the equilibrium price
V and the
D1
Q1
equilibrium quantity
Q, quantity of corn as food
...
$. price of corn
Chapter 1 Solutions
EBK INTERMEDIATE MICROECONOMICS AND ITS
Ch. 1.2 - Prob. 1MQCh. 1.2 - Prob. 2MQCh. 1.3 - Prob. 1TTACh. 1.3 - Prob. 2TTACh. 1.4 - Prob. 1TTACh. 1.4 - Prob. 2TTACh. 1.4 - Prob. 1MQCh. 1.4 - Prob. 2MQCh. 1.4 - Prob. 1.1MQCh. 1.4 - Prob. 1.2MQ
Ch. 1.5 - Prob. 1TTACh. 1.5 - Prob. 2TTACh. 1 - Prob. 1RQCh. 1 - Prob. 2RQCh. 1 - Prob. 3RQCh. 1 - Prob. 4RQCh. 1 - Prob. 5RQCh. 1 - Prob. 6RQCh. 1 - Prob. 7RQCh. 1 - Prob. 8RQCh. 1 - Prob. 9RQCh. 1 - Prob. 10RQCh. 1 - Prob. 1.1PCh. 1 - Prob. 1.2PCh. 1 - Prob. 1.3PCh. 1 - Prob. 1.4PCh. 1 - Prob. 1.5PCh. 1 - Prob. 1.6PCh. 1 - Prob. 1.7PCh. 1 - Prob. 1.8PCh. 1 - Prob. 1.9PCh. 1 - Prob. 1.10P
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