Econ Micro (book Only)
6th Edition
ISBN: 9781337408066
Author: William A. McEachern
Publisher: Cengage Learning
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Question
Chapter 11, Problem 3P
To determine
The reason the market supply curve of a resource slopes upwards
Concept Introduction:
Market Supply: The total quantity of goods and services the suppliers are willing to provide at a given price during a set period of time.
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(Figure: Supply Curves) The figure shows four different supply curves for four products. Which one of the supply curves
MOST likely represents a crop that takes a long time to grow?
Product A
Product B
Price
Supply
product A
product B
product C
product D
Quantity
Price
Supply
Quantity
Price
Product C
Supply
Quantity
Price
Product D
Supply
Quantity
(a) The table below lists the per pound prices of meat and potatoes for the months of
January, February, and March. Assume that the typical consumer buys 24 pounds
of meat and 16 pounds of potatoes each month, and that January is the base period.
Table 1
Month
Price of Meat
Price of Potatoes
January
February
March
$3.50
$1.50
$0.60
$1.40
$3.38
$4.00
(i)
Calculate the cost of a basket of goods for each month.
(ii)
Calculate the consumer price index for February and March.
(Supply) Why is a firm willing and able to increase thequantity supplied as the product price increases?
Chapter 11 Solutions
Econ Micro (book Only)
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