EBK INTERMEDIATE MICROECONOMICS AND ITS
12th Edition
ISBN: 9781305176386
Author: Snyder
Publisher: YUZU
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Chapter 10.4, Problem 1.1MQ
To determine
To Draw: Simple
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in the Fall of 2020, international demand for U.S. grains grew, pushing up the prices for grains. Indeed grain prices grew nearly 50% in the last 6 months. Your task as an analyst is to analyze the changes in the market for corn.
Using a graph, depict the changes that took place in the corn market. Clearly show and explain any shifts in demand and/or supply curves. Label any shifted curves as D1 and/or S1. If the curves have not shifted, please explain why.
Clearly show the new market equilibrium. Label the new equilibrium price as P1 and equilibrium quantity as Q1
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What effect did this increased use of corn for producing ethanol have on the price
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1.) Use the line drawing tool to draw either a new demand curve (D2) or a new
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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
How will each of the following changes in demand and/or supply affect
equilibrium price and equilibrium quantity in a competitive market; that is do price and quantity rise,
fall, remain unchanged, or are the answers indeterminate because they depend on the magnitudes of
the shifts? Use supply and demand diagrams to verify your answers on the graph provided below.
Label all axis including demand and supply. (See PPT slides #3-56, #3-58~#3-60, how to do it.)
15.
a. Supply decreases and demand is constant. EI provide as an example for you to solve others.
P
S'
Conclusion from D constant & SJ:
S
e2
Pe2-
Price increases (P↑), and
Quantity may decrease (QJ).
e1
Pel
Qe2 Qel
b. Supply increases and demand decreases, simultaneously. E Now you provide D & S graphs.
S
Conclusion from DJ & S↑:
Price
(Р
), and
Pe
Quantity
(Q_).
e
So (price, quantity) is
indeterminate.
Qe
с.
Demand increases and supply decreases, simultaneously.
S
Conclusion from D↑ & S]:
Price
(Р
), and
Quantity
(Q_).
Pe
e
So…
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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