EBK INTERMEDIATE MICROECONOMICS AND ITS
12th Edition
ISBN: 9781305176386
Author: Snyder
Publisher: YUZU
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Chapter 10, Problem 7RQ
To determine
A shift in
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In the following scenarios, you will be given a product and an event. Determine what will happen to the demand for the product based on the event, what happens to the demand curve, and give the non-price determinant that caused it to occur. (chose from the 7 determinants listed in the notes). The first one is answered for you as an example.
EXAMPLE/ Product - Hamburgers Event - The price of steak increases Answer/ Demand increases - Curve shifts right - Price of substitutes
1. Pepsi - The price of Coke decreases dramatically.
2. Steak - Incomes fall due to the recession
3. Hair dye - Hair dye is successfully advertised in the media.
4. Computer software - The price of computers goes down.
a) Suppose demand for good X is given by QD = 900- p/2 where p is the price and QD the quantity demanded. Supply is given by QS = p/4.
Suppose 60 TL tax is imposed on each unit of X that is purchased.
What is the burden of the tax? Explain the key factors that determine the incidence of the tax.
b) Describe the main differences between partial and general equilibrium analysis in the context of examining tax incidence.
Suppose firms exit the market for widgets. This would
A (increase/decrease) the
A (supply/demand) of widgets. At the
same time, health researchers publish research that widgets increase your risk for
cancer. This would
A (increase/decrease) the
A (supply/demand) for our widgets.
Suppose the change in demand is stronger than the change in supply, the equilibrium
price of widgets
(increases/decreases/ambiguously
changes).
A/
changes), and the equilibrium quantity of widgets
A (increases/decreases/ambiguously
Chapter 10 Solutions
EBK INTERMEDIATE MICROECONOMICS AND ITS
Ch. 10.2 - Prob. 1MQCh. 10.4 - Prob. 1MQCh. 10.4 - Prob. 2MQCh. 10.4 - Prob. 1.1MQCh. 10.5 - Prob. 1TTACh. 10.5 - Prob. 2TTACh. 10.7 - Prob. 1MQCh. 10.7 - Prob. 2MQCh. 10.7 - Prob. 3MQCh. 10.8 - Prob. 1TTA
Ch. 10.8 - Prob. 2TTACh. 10.8 - Prob. 1MQCh. 10.8 - Prob. 2MQCh. 10 - Prob. 1RQCh. 10 - Prob. 2RQCh. 10 - Prob. 3RQCh. 10 - Prob. 4RQCh. 10 - Prob. 5RQCh. 10 - Prob. 6RQCh. 10 - Prob. 7RQCh. 10 - Prob. 8RQCh. 10 - Prob. 9RQCh. 10 - Prob. 10RQCh. 10 - Prob. 10.1PCh. 10 - Prob. 10.2PCh. 10 - Prob. 10.3PCh. 10 - Prob. 10.4PCh. 10 - Prob. 10.5PCh. 10 - Prob. 10.6PCh. 10 - Prob. 10.7PCh. 10 - Prob. 10.8PCh. 10 - Prob. 10.9PCh. 10 - Prob. 10.10P
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