Microeconomics (13th Edition)
13th Edition
ISBN: 9780134744476
Author: Michael Parkin
Publisher: PEARSON
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Question
Chapter 18, Problem 16APA
(a)
To determine
The influence of price on the market for factory labor.
(b)
To determine
Graphical illustration for the effect of increase in demand for electronic car on the market for factory labors.
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Business
Math
16. Use the following supply and demand data for a
cake business to draw a supply and demand curve.
Circle the equilibrium point. How many cakes
should the entrepreneur supply each week? Why?
What price should the entrepreneur charge for
each cake? Why?
Supply
Quantity per wk.
2
4
6
8
12 14
Price per cake
$5 $10 $15 $20 $30 $35
Demand
Quantity per wk. 19
16
13
10
7
4
Price per cake
$10 $15 $20 $25 $30 $35
The blue curve on the follovwing graph represents the demand curve facing a firm that can set its own prices.
Use the graph input tool to help you answer the following questions. You will not be graded on any changes you make to this graph.
Note: Once you enter a value in a white field, the graph and any corresponding amounts in each grey field will change accordingly.
Graph Input Tool
Market for Goods
250
225
I Quantity
Demanded
25
200
(Units)
175
Demand Price
(Dollars per unit)
125.00
150
125
100
75
Demand
50
25
30
QUANTITY (Units)
5
10 15 20 25
35 40
45 50
On the graph input tool, change the number found in the Quantity Demanded field to determine the prices that correspond to the production of 0, 10,
20, 25, 30, 40, and 50 units of output. Calculate the total revenue for each of these production levels. Then, on the following graph, use the green
points (triangle symbol) to plot the results
3130
2817
Total Revenue
2504
2191
1878 +
1565
1252
939
626
313
5
10
15
20
25
30
35
40
45
50…
10. Transaction costs Stella needs a new kitchen. She finds Stelios, a contractor, through an ad he posted in the local newspaper. Stelios paid $65 to post the ad in the newspaper. After Stella and Stelios agree on the price for the new kitchen, they sign a contract, which Stella has a law firm write up for $105, stating that Stelios will install Stella's new kitchen for $2,300. The transaction costs associated with this exchange are .
Chapter 18 Solutions
Microeconomics (13th Edition)
Ch. 18.1 - Prob. 1RQCh. 18.1 - Prob. 2RQCh. 18.1 - Prob. 3RQCh. 18.2 - Prob. 1RQCh. 18.2 - Prob. 2RQCh. 18.2 - Prob. 3RQCh. 18.2 - Prob. 4RQCh. 18.3 - Prob. 1RQCh. 18.3 - Prob. 2RQCh. 18.3 - Prob. 3RQ
Ch. 18.3 - Prob. 4RQCh. 18.3 - Prob. 5RQCh. 18.3 - Prob. 6RQCh. 18.4 - Prob. 1RQCh. 18.4 - Prob. 2RQCh. 18.4 - Prob. 3RQCh. 18.4 - Prob. 4RQCh. 18.4 - Prob. 5RQCh. 18 - Prob. 1SPACh. 18 - Prob. 2SPACh. 18 - Prob. 3SPACh. 18 - Prob. 4SPACh. 18 - Prob. 5SPACh. 18 - Prob. 6SPACh. 18 - Prob. 7SPACh. 18 - Prob. 8SPACh. 18 - Prob. 9SPACh. 18 - Prob. 10SPACh. 18 - Prob. 11APACh. 18 - Prob. 12APACh. 18 - Prob. 13APACh. 18 - Prob. 14APACh. 18 - Prob. 15APACh. 18 - Prob. 16APACh. 18 - Prob. 17APACh. 18 - Prob. 18APACh. 18 - Prob. 19APACh. 18 - Prob. 20APACh. 18 - Prob. 21APACh. 18 - Prob. 22APACh. 18 - Prob. 23APACh. 18 - Prob. 24APACh. 18 - Prob. 25APACh. 18 - Prob. 26APACh. 18 - Prob. 27APA
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