Microeconomics (13th Edition)
13th Edition
ISBN: 9780134744476
Author: Michael Parkin
Publisher: PEARSON
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Question
Chapter 12, Problem 19APA
(a)
To determine
Whether the automobile manufacturer is making a shut down or exit decision in the market.
(b)
To determine
How the exiting decision maximizes the economic profit of the firm.
(c)
To determine
How the firm's production affects the profit or loss of the other players in the market.
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Homework (Ch 14)
7. Short-run and long-run effects of a shift in demand
Suppose that the chicken industry is in long-run equilibrium at a price of $5 per pound of chicken and a quantity of 500 million pounds per year.
Suppose that WebMD claims that a protein found in chicken will increase your expected lifespan by 4 years.
WebMD's daim will cause consumers to demand
Shift the demand curve, the supply curve, or both on the following graph to illustrate these short-run effects of WebMD's claim.
(?)
PRICE (Dollars per pound)
10
8
0
100
chicken at every price. In the short run, firms will respond by
In the long run, some firms will respond by
Supply
200 300 400 500 600 700 800
QUANTITY (Millions of pounds)
Demand
900 1000
H
O
Demand
10
Supply
a
a
17
until
=)
n
8. Short-run and long-run effects of a shift in demand
Suppose that the tempeh industry is initially operating in long-run equilibrium at a price level of $5 per pound of tempeh and quantity of 150 million
pounds per year. Suppose a top medical journal publishes research that animal-alternative protein sources such as tempeh could decrease your
expected lifespan by 4 years.
The publication is expected to cause consumers to demand tempeh at every price. In the short run, firms will respond by
Shift the demand curve, the supply curve, or both on the following graph to illustrate these short-run effects of the publication.
PRICE (Dollars per pound)
10
9
8
00
m
2
1
0
0
Supply
In the long run, some firms will respond by
Demand
30 60 90 120 150 180 210 240 270 300
QUANTITY (Millions of pounds)
Demand
Supply
until
In the long run, some firms will respond
by
Shift the demand curve, the supply curve, or both on the following graph to illustrate both the short-run effects of the viral video and the new long-
run equilibrium after firms and consumers finish adjusting to the news.
PRICE (Dollars per pound)
2
1
0
0
Supply
Demand
until
40 60 80 100 120 140 160 100 200
QUANTITY (Millions of pounds)
Demand
1
Supply
The new equilibrium price and quantity suggest that the shape of the long-run supply curve in this industry is
in the long
Chapter 12 Solutions
Microeconomics (13th Edition)
Ch. 12.1 - Prob. 1RQCh. 12.1 - Prob. 2RQCh. 12.1 - Prob. 3RQCh. 12.1 - Prob. 4RQCh. 12.2 - Prob. 1RQCh. 12.2 - Prob. 2RQCh. 12.2 - Prob. 3RQCh. 12.3 - Prob. 1RQCh. 12.3 - Prob. 2RQCh. 12.3 - Prob. 3RQ
Ch. 12.4 - Prob. 1RQCh. 12.4 - Prob. 2RQCh. 12.5 - Prob. 1RQCh. 12.5 - Prob. 2RQCh. 12.5 - Prob. 3RQCh. 12.6 - Prob. 1RQCh. 12.6 - Prob. 2RQCh. 12.6 - Prob. 3RQCh. 12.6 - Prob. 4RQCh. 12 - Prob. 1SPACh. 12 - Prob. 2SPACh. 12 - Prob. 3SPACh. 12 - Prob. 4SPACh. 12 - Prob. 5SPACh. 12 - Prob. 6SPACh. 12 - Prob. 7SPACh. 12 - Prob. 8SPACh. 12 - Prob. 9SPACh. 12 - Prob. 10APACh. 12 - Prob. 11APACh. 12 - Prob. 12APACh. 12 - Prob. 13APACh. 12 - Prob. 14APACh. 12 - Prob. 15APACh. 12 - Prob. 16APACh. 12 - Prob. 17APACh. 12 - Prob. 18APACh. 12 - Prob. 19APACh. 12 - Prob. 20APACh. 12 - Prob. 21APACh. 12 - Prob. 22APACh. 12 - Prob. 23APA
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