Macroeconomics
13th Edition
ISBN: 9780134735696
Author: PARKIN, Michael
Publisher: Pearson,
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Question
Chapter 11, Problem 15APA
a)
To determine
Long-term and short-term decisions.
b)
To determine
The riskier decision.
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Students have asked these similar questions
6
In 1916, Henry Ford was quoted as saying the following:
"There are men who will pay $360 for a car who would not pay $440. We had in round numbers
500,000 buyers of cars on the $440 basis, and I figure that on the $360 basis we can
increase sales to possibly 800,000 cars for the year - less profit on each car, but more cars,
more employment of labor, and in the end we get all the total profit we ought to make."
If Ford's estimate as correct, what was the price elasticity of demand for his cars?
By how much did total revenue increase?
7
Using the data from question 6, above, write the demand curve equation for Henry Ford's
cars.
8
Using the demand curve equation from question 7, build a graphic to sell Ford cars to the
public in 1916.
6
In 1916, Henry Ford was quoted as saying the following:
"There are men who will pay $360 for a car who would not pay $440. We had in round numbers
500,000 buyers of cars on the $440 basis, and I figure that on the $360 basis we can
increase sales to possibly 800,000 cars for the year - less profit on each car, but more cars,
more employment of labor, and in the end we get all the total profit we ought to make."
If Ford's estimate as correct, what was the price elasticity of demand for his cars?
By how much did total revenue increase?
2.5 After the Sears department store chain emerged from bankruptcy, its CEO Edward Lampert was
quoted as saying: "Our goal is to continue to shrink the size of our stores." Is Lampert's remark referring
to Sears's economic short run or its economic long run? Briefly explain.
Chapter 11 Solutions
Macroeconomics
Ch. 11.1 - Prob. 1RQCh. 11.1 - Prob. 2RQCh. 11.2 - Prob. 1RQCh. 11.2 - Prob. 2RQCh. 11.2 - Prob. 3RQCh. 11.3 - Prob. 1RQCh. 11.3 - Prob. 2RQCh. 11.3 - Prob. 3RQCh. 11.3 - Prob. 4RQCh. 11.3 - Prob. 5RQ
Ch. 11.4 - Prob. 1RQCh. 11.4 - Prob. 2RQCh. 11.4 - Prob. 3RQCh. 11.4 - Prob. 4RQCh. 11.4 - Prob. 5RQCh. 11 - Prob. 1SPACh. 11 - Prob. 2SPACh. 11 - Prob. 3SPACh. 11 - Prob. 4SPACh. 11 - Prob. 5SPACh. 11 - Prob. 6SPACh. 11 - Prob. 7SPACh. 11 - Prob. 8SPACh. 11 - Prob. 9SPACh. 11 - Prob. 10SPACh. 11 - Prob. 11SPACh. 11 - Prob. 12SPACh. 11 - Prob. 13SPACh. 11 - Prob. 14SPACh. 11 - Prob. 15APACh. 11 - Prob. 16APACh. 11 - Prob. 17APACh. 11 - Prob. 18APACh. 11 - Prob. 19APACh. 11 - Prob. 20APACh. 11 - Prob. 21APACh. 11 - Prob. 22APACh. 11 - Prob. 23APACh. 11 - Prob. 24APACh. 11 - Prob. 25APACh. 11 - Prob. 26APACh. 11 - Prob. 27APACh. 11 - Prob. 28APACh. 11 - Prob. 29APACh. 11 - Prob. 30APACh. 11 - Prob. 31APACh. 11 - Prob. 32APA
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