Economics Today (19th Edition)
19th Edition
ISBN: 9780134478777
Author: Roger LeRoy Miller
Publisher: PEARSON
expand_more
expand_more
format_list_bulleted
Textbook Question
Chapter 3, Problem 17P
In Figure 3-4 |O, the current position of the demand curve is Db and the price of a portable power bank, which is a normal good, is $3. If there is an increase in consumer incomes, will the demand curve shift to D2or to D3? What is the change in the amount of portable power banks demanded?
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solutionStudents have asked these similar questions
The following table shows two demand schedules for a given style of men's shoe-that is, how many pairs per month will be
demanded at various prices at Stromnord, a men's clothing store.
Price
$ 85
80
75
70
65
D₁ Quantity
Demanded
53
60
What if demand is D2?
68
77
87
Suppose that Stromnord has exactly 65 pairs of this style of shoe in inventory at the start of the month of July and will not receive any
more pairs of this style until at least August 1.
Instructions: Enter your answers as a whole number.
a. If demand is D₁, what is the lowest price that Stromnord can charge so that it will not run oht of this model of shoe in the month of
July?
pair(s)
D2 Quantity
Demanded
13
15
18
22
27
b. If the price of shoes is set at $85 for both July and August and demand will be D2 in July and D in August, how many pairs of shoes
should Stromnord order if it wants to end the month of August with exactly zero pairs of shoes in its inventory?
pair(s)
How many pairs of shoes should it order if the…
A good's price elasticity of demand depends in part on how necessary it is relative to other goods. If the following goods are priced approximately the
same, which one has the least elastic demand?
O Amputation procedures for diabetes sufferers
O Yacht
The price elasticity of demand for a good also depends on how you define the good.
Organize the goods found in the following table by indicating which is likely to have the most elastic demand, which is likely to have the least elastic
demand, and which will have demand that falls in between.
Categories
Most Elastic
In Between
Least Elastic
Food
Red bell peppers
less
Vegetables
more
The price elasticity of demand is also affected by the given time horizon.
no more, nor less,
Compared to the short-run demand for oil, the demand for oil in the long run will tend to be
elastic.
What effect will each of the following have on the supply of auto tires?
Microeconomics chapter 3
Supply is a schedule or curve showing the amounts of a productthat producers are willing to offer in the market at each possibleprice during a specific period. The law of supply states that otherthings equal, producers will offer more of a product at a high pricethan at a low price. Thus, the relationship between price and quantity supplied is positive or direct, and supply is graphed as anupsloping curve.The market supply curve is the horizontal summation of thesupply curves of the individual producers of the product.Changes in one or more of the determinants of supply (resource prices, production techniques, taxes or subsidies, the pricesof other goods, producer expectations, or the number of sellers inthe market) shift the supply curve of a product. A shift to the rightis an increase in supply; a shift to the left is a decrease in supply. Incontrast, a change in the price of the…
Chapter 3 Solutions
Economics Today (19th Edition)
Ch. 3 - Prob. 3.1LOCh. 3 - Prob. 3.2LOCh. 3 - Explain the law of supplyCh. 3 - Prob. 3.4LOCh. 3 - Prob. 3.5LOCh. 3 - Prob. aFCTCh. 3 - Prob. bFCTCh. 3 - Prob. cFCTCh. 3 - What do you suppose has happened since 2008 to the...Ch. 3 - Prob. eFCT
Ch. 3 - Prob. fFCTCh. 3 - Prob. gFCTCh. 3 - Prob. hFCTCh. 3 - Prob. 1CTQCh. 3 - Prob. 2CTQCh. 3 - Prob. 1FCTCh. 3 - Prob. 2FCTCh. 3 - Prob. 1PCh. 3 - Prob. 2PCh. 3 - Prob. 3PCh. 3 - Prob. 4PCh. 3 - Prob. 5PCh. 3 - Prob. 6PCh. 3 - Prob. 7PCh. 3 - Prob. 8PCh. 3 - Prob. 9PCh. 3 - Prob. 10PCh. 3 - Prob. 11PCh. 3 - Prob. 12PCh. 3 - Prob. 13PCh. 3 - Prob. 14PCh. 3 - Prob. 15PCh. 3 - Prob. 16PCh. 3 - In Figure 3-4 |O, the current position of the...Ch. 3 - Prob. 18PCh. 3 - Prob. 19PCh. 3 - Prob. 20PCh. 3 - Prob. 21P
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.Similar questions
- If a 10 decrease in the price of one product that you buy causes an 8 increase in quantity demanded of that product, will another 10 decrease in the price cause another 3 increase (no more and no less) in quantity demanded?arrow_forwardEconomists define normal goods as having a positive income elasticity. We can divide normal goods into two types: Those whose income elasticity is less than one and those whose income elasticity is greater than one. Think about products that would fall into each category. Can you come up with a name for each category?arrow_forwardAs the price of good X rises from 10 to 12, the quantity demanded of good Y rises from 100 units to 114 units. Are X and Y substitutes or complements? What is the cross elasticity of demand?arrow_forward
- Using the following equation for the demand for a good or service, calculate the price elasticity of demand (using the point form), cross-price elasticity with good x and income elasticity. Q=82P+0.10I+Px Q is quantity demanded, P is the product price. P1 is the price of a related good, and I is income. Assume that P= $10, I = 100, and Px = 20.arrow_forwardWhat effect will each of the following have on the supply of auto tires? Microeconomics chapter 3 Supply is a schedule or curve showing the amounts of a productthat producers are willing to offer in the market at each possibleprice during a specific period. The law of supply states that otherthings equal, producers will offer more of a product at a high pricethan at a low price. Thus, the relationship between price and quantity supplied is positive or direct, and supply is graphed as anupsloping curve.The market supply curve is the horizontal summation of thesupply curves of the individual producers of the product.Changes in one or more of the determinants of supply (resource prices, production techniques, taxes or subsidies, the pricesof other goods, producer expectations, or the number of sellers inthe market) shift the supply curve of a product. A shift to the rightis an increase in supply; a shift to the left is a decrease in supply. Incontrast, a change in the price of the…arrow_forwarddraw a market demand for a good that has many substitutes. You will recall that price elasticity of demand for a particular good or service is influenced by various factors, including whether the good or service under consideration has substitutes. Is this demand price elastic or inelastic? Why do you think this? Next draw a market demand for a good that has few substitutes. Is this demand price elastic or inelastic and why do you think this? With these two demand curves in mind, please answer the following questions: Discuss a real world example of each and explain why you think they are good examples of the two types of market demand. Why? If you wanted to increase revenue, which demand curve would you rather face as a company? Why? If the demand curves were linear, how would you modify your answer to the question above? (Hint: think about what happens to revenue across a linear demand curve.) Consider the market demand curve of a good with a lot of substitutes—perhaps the…arrow_forward
- Suppose the market for frozen orange juice is in equilibrium at price of $2.00 per can and a quantity of 4200 cans per month. Now suppose that at a price of $3.00 per can, quantity demanded falls to 3000 cans per month and quantity supplied increases to 4500 cans per month. i. Draw the appropriate diagram for this market. Calculate the price elasticity of demand for frozen orange juice between the prices of $2.00 and $3.00. Is the demand elastic or inelastic? ii. iii. 2 Calculate the elasticity of supply for frozen orange juice between the price of $2.00 and $3.00. Is the supply elastic or inelastic?arrow_forwardSuppose the demand for parking at campus is given by P - 5 -0.02Q. where Pis the price in dollars and Qis the quantity demanded. Suppose the current price is $2.50, if the goal is to increase total revenue, would you recommend increasing the price of parking from $2.50 to $3.00? Briefly (in a sentence or two) explain your answer. Edit View Insert Format Tools Tablearrow_forwardThe diagram illustrates the demand for MQ2020, a luxury car manufactured by MQ Motors Which statement correctly describes the demand for MQ2020? 8,000 Price, P: WTP (5) 6,000 4,800 4,000 3,200 2,000 0 0 40 60 80 100 Quantity, Q: number of consumers per day 120 Select one O a. There are 99 consumers per day who are willing to pay money for MQ2020. O b. If MQ Motors sets the price at $4,800, there will be 60 consumers who are willing to buy MC22020 Oc MQ Motors will need to raise the price up to $8,000 in order to maximise its profit Od. There are 59 consumers who are willing to pay more than $4,800 for MQ2020. Oe. The demand curve shows that points A and C are feasible options for MQ Motors.arrow_forward
- Question Papa's Italian Joint has a promotion for $1 off any large specialty pizza. Ernie's Shop does not have any promotions that reduce the price of pizza. How does the decrease in price of Papa's Italian Joint pizza affect the demand for Ernie's Shop pizza? In the graph below, show how demand for Ernie's Shop pizza is impacted by shifting the supply or demand curve in the appropriate direction. Provide your answer below: ce of Ernie's Shop pizza Reflect in ePortfolio You have viewed this topic Last Visited Aug 23, 2023 10:12 AM Supply Activity Detailsarrow_forwardDemand for Martha’s Mums will be 650 small mum plants if they are priced at $4.25 each but only 150 if they are priced at $10.75 each. a. Find the linear demand equation for Martha’s small mums (let x = number of small mum plants supplied, y = price). b. At what price will the demand for Martha’s mums drop to zero? c. What will be the demand for Martha’s mums if they are free? (Round to the nearest whole number).arrow_forwardIn a certain market for sobolo,when the price of the drink was Ghc 3 the quantity demanded was 12bottles.On another day,when the price per bottle was 5 cedis,the quantity demanded was 6 bottles.Use the information to write the equation for demand.Now,what will be quantity demanded if price per bottle was 6cedis.If we restrict price to the same demand curve,what will happen if price is less than Ghc 2.arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
- Exploring EconomicsEconomicsISBN:9781544336329Author:Robert L. SextonPublisher:SAGE Publications, Inc
- Microeconomics: Principles & PolicyEconomicsISBN:9781337794992Author:William J. Baumol, Alan S. Blinder, John L. SolowPublisher:Cengage LearningPrinciples of Economics 2eEconomicsISBN:9781947172364Author:Steven A. Greenlaw; David ShapiroPublisher:OpenStax
Exploring Economics
Economics
ISBN:9781544336329
Author:Robert L. Sexton
Publisher:SAGE Publications, Inc
Microeconomics: Principles & Policy
Economics
ISBN:9781337794992
Author:William J. Baumol, Alan S. Blinder, John L. Solow
Publisher:Cengage Learning
Principles of Economics 2e
Economics
ISBN:9781947172364
Author:Steven A. Greenlaw; David Shapiro
Publisher:OpenStax
How To Understand Elasticity (Economics); Author: Market Power;https://www.youtube.com/watch?v=1XXhpHJTglg;License: Standard Youtube License