Microeconomics (9th Edition) (Pearson Series in Economics)
9th Edition
ISBN: 9780134184241
Author: Robert Pindyck, Daniel Rubinfeld
Publisher: PEARSON
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Chapter 2, Problem 5E
(a)
To determine
The change in free market
(b)
To determine
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Students have asked these similar questions
Much of the demand for U.S. agricultural output has come from other countries. In 1998, the total demand for wheat was
Q = 3,244 - 283P.
Of this, total domestic demand was
Qn = 1700 - 107P,
and domestic supply was
Qs = 1,944 + 207P
Suppose the export demand for wheat falls by 50 percent.
U.S. farmers are concerned about this drop in export demand. What happens to the free-market price of wheat in the United States?
The free-market price of wheat in the United States after the drop in export demand is $1.31. (Enter your response rounded to two decimal places.)
Do famers have much reason to worry?
O A. Farmers have reason to worry because the equilibrium quantity decreases from 3,492.55 million bushels to 2,215.17 million bushels.
O B. Farmers have reason to worry because the market price for wheat decreases from $3.65 per bushel to $1.31 per bushel.
OC. Farmers have no reason to worry because the equilibrium quantity decreases from 2,592.55 million bushels to 2,215.17 million bushels.
O…
India produces wheat that it consumes domestically and exports to Sri Lanka. Sri Lanka doesn’t produce any wheat and is totally dependent on India. The total demand of wheat is given by Q = 3244 -283P. The domestic demand of India is given by the equation Qd = 1700-107P. The total supply of wheat is given by equationQs= 1944 + 207P.(P is in Rs per Kg and Q is in lakh Kg.)
a.Calculate the market price of wheat.
C.Suppose the export demand for wheat falls by 40 percent, will the market price change? If yes, then what is the newmarketprice?
Discuss the price elasticity of demand and the price elasticity of supply of goods that have low value but are limited in supply. Discuss why the reduction in world price of such commodities can be considered harmful to an economy that exports such commodities.
Chapter 2 Solutions
Microeconomics (9th Edition) (Pearson Series in Economics)
Ch. 2 - Prob. 1RQCh. 2 - Prob. 2RQCh. 2 - If a 3-percent increase in the price of corn...Ch. 2 - Prob. 4RQCh. 2 - Explain why for many goods, the long-run price...Ch. 2 - Why do long-run elasticities of demand differ from...Ch. 2 - Prob. 7RQCh. 2 - Prob. 8RQCh. 2 - Prob. 9RQCh. 2 - In a discussion of tuition rates, a university...
Ch. 2 - Suppose the demand curve for a product is given by...Ch. 2 - Prob. 12RQCh. 2 - Prob. 13RQCh. 2 - Prob. 1ECh. 2 - Consider a competitive market for which the...Ch. 2 - Prob. 3ECh. 2 - Prob. 4ECh. 2 - Prob. 5ECh. 2 - Prob. 6ECh. 2 - In 2010, Americans smoked 315 billion cigarettes,...Ch. 2 - In Example 2.8 we examined the effect of a...Ch. 2 - In Example 2.8 (page 52), we discussed the recent...Ch. 2 - Prob. 12E
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