Principles of Economics 2e
2nd Edition
ISBN: 9781947172364
Author: Steven A. Greenlaw; David Shapiro
Publisher: OpenStax
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Textbook Question
Chapter 3, Problem 37CTQ
Explain why the following statement is false: “In the goods market, no buyer would be willing to pay more than me
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Chapter 3 Solutions
Principles of Economics 2e
Ch. 3 - Review Figure 3.4. Suppose the price of gasoline...Ch. 3 - Why do economists use the ceteris paribus...Ch. 3 - In an analysis of the market for paint, an...Ch. 3 - Many changes are affecting the market for oil....Ch. 3 - Lets think about the market for air travel. From...Ch. 3 - A tariff is a tax on imported goods. Suppose the...Ch. 3 - What is the effect of a price ceiling on the...Ch. 3 - Does a price ceiling change the equilibrium price?Ch. 3 - What would be the impact of imposing a price flour...Ch. 3 - Does a price ceiling increase the decrease the...
Ch. 3 - If a price floor benefits producers, why does a...Ch. 3 - What determines the level of prices in a market?Ch. 3 - What does a downward-sloping demand curve mean...Ch. 3 - Will demand curves have the same exact shape in...Ch. 3 - Will supply curves have the same shape in all...Ch. 3 - What is the relationship between quantity Demanded...Ch. 3 - How can you locate the equilibrium point on a...Ch. 3 - If the price is above line equilibrium level,...Ch. 3 - When the price is above the equilibrium, explain...Ch. 3 - What is the difference between the demand and the...Ch. 3 - What is the difference between the supply and the...Ch. 3 - When analyzing a market, how do economists deal...Ch. 3 - Name some factors that can cause a shift in line...Ch. 3 - Name some farm that can cause a shift in the...Ch. 3 - How does one analyze a market where both demand...Ch. 3 - What causes a movement along the demand curve?...Ch. 3 - Does a price ceiling attempt to make a price...Ch. 3 - How does a price ceiling set below the equilibrium...Ch. 3 - Does a price floor attempt to make a price higher...Ch. 3 - How does a price floor 521 above the equilibrium...Ch. 3 - What is consumer surplus? How is it illustrated on...Ch. 3 - What is producer surplus? How is it illustrated on...Ch. 3 - What is total surplus? How is it illustrated on a...Ch. 3 - What is the relationship between total surplus and...Ch. 3 - What is deadweight loss?Ch. 3 - Review Figure 3.4. Suppose the government decided...Ch. 3 - Explain why the following statement is false: In...Ch. 3 - Explain why the following statement is false: In...Ch. 3 - Consider the demand for hamburgers. If the price...Ch. 3 - How do you suppose the demographics of an aging...Ch. 3 - We know that a change in the price of a product...Ch. 3 - Suppose there is a soda tax to curb obesity. What...Ch. 3 - Use the four-step process to analyze the impact of...Ch. 3 - Use the four-step process to analyze the impact of...Ch. 3 - Suppose both of these events took place at the...Ch. 3 - Must government policy decisions have winners and...Ch. 3 - Agricultural price supports result in governments...Ch. 3 - Can you propose a policy that meld induce the...Ch. 3 - What term would an economist use to describe what...Ch. 3 - Explain why voluntary Martians improve social...Ch. 3 - Why would a free market mar operate at a quantity...Ch. 3 - Review Figure 3.4 again. Suppose the price of...Ch. 3 - Table 3.8 shows information on the demand and...Ch. 3 - The computer market in recent years has seen many...Ch. 3 - Table 3.9 illustrates the markets demand and...Ch. 3 - Table 3.10 shows the supply and demand for movie...Ch. 3 - A low-income county decides to set a price ceiling...
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- Suppose the demand for fish tacos is given by the following equation: Qd = 9 - 1P where Qd is the quantity demanded per week of fish tacos, and P is the price of fish tacos. Suppose further that the supply of fish tacos is: Qs = 2 + 2P where Qs is the quantity supplied per week of fish tacos. What is the equilibrium market price of fish tacos? (Round your answer to 2 decimal places.)arrow_forwardGood A (an inferior good) and Good B (a normal good) are viewed by consumers to be substitute products. Suppose that the price of Good B falls at the same time that consumer income increases. What is the net effect of these two events on equilibrium in the market for Good A? an increase in equilibrium quantity and an indeterminate effect on price a decrease in both the equilibrium price and quantity an indeterminate effect on quantity but an increase in price an increase in both the equilibrium price and quantityarrow_forwardConsider the following two equations for the demand and supply: Supply curve: Qs = 10 + 2P Demand curve: Qd = 30 − 12P (a) What is the value of the equilibrium price? (b) What is the equilibrium quantity? Suppose that clothes workers at a certain factory accept a pay cut of $3 per hour. (a) Draw a graph to show how this would affect the market for clothes. (b) Why does this shift occur? How does that affect the equilibrium price and quantity? Suppose that the price of product A increases from $10 to $19. As a result, quantity demanded for product B changes from 300 to 265. What can we say about products A and B? Explain.arrow_forward
- Suppose the price of gasoline is $1.00. Will the quantity demanded be lower or higher than at the equilibrium price of $1.40 per gallon? Will the quantity supplied be lower or higher? Is there a shortage or a surplus in the market? If so, of how much?arrow_forwardAssume that tea and lemons are complements and coffee and tea are substitutes. Say that the government imposes a price ceiling on tea that is below the current market equilibrium price. a)How, if at all, will this affect the price of lemons? b)How, if at all , will this affect the price of coffee?arrow_forwardIf the quantity demanded of ice cream is 100 scoops and the quantity supplied is 50 scoops, then the price of ice cream is less than the equilibrium price. Explain why.arrow_forward
- Consider the markets for butter (B) and margarine (M), where the demand curves are QdM = 20 – 2PM + PB and QdB = 60 – 6PB + 4 PM and the supply curves are QsM = 2PM and QsB = 3PB. a. Find the equilibrium prices and quantities for butter and margarine. b. Suppose that an increase in the price of vegetable oil shifts the supply curve of margarine to QsM = PM. How does this change affect the equilibrium prices and quantities for butter and margarine?arrow_forward2) Consider the following demand Qd = 140 - 3P and supply QS = 20 +20P for lunch at the Mountain View Golf and Country Club. a) Draw the demand and supply curves, and calculate the equilibrium price and quantity. b) The provincial government has imposed a sales tax of 12 percent on restaurant meals. Show how the above market is affected, and the new equilibrium price and quantity. (calculation is necessary). c) Explain and illustrate how the consumer's welfare is affected. Specifically show how the (1) consumer surplus, (2) total value, and (3) marginal value change.arrow_forwardConsider the supply of pork. What are at least three different developments that might shift the supply curve for pork? Be specific.arrow_forward
- How price equilibrium is achieved?arrow_forwardSuppose that demand for a good increases and, at the same time, supply of the good decreases. What would happen in the market for the good? Answer A)Equilibrium price would decrease, but the impact on equilibrium quantity would be ambiguous. B)Equilibrium price would increase, but the impact on equilibrium quantity would be ambiguous. C)Equilibrium quantity would decrease, but the impact on equilibrium price would be ambiguous. D)Equilibrium quantity would increase, but the impact on equilibrium price would be ambiguous.arrow_forwardIf individuals were spending more time at home and expected the price of Charmin toilet paper to increase in the future, would this, ceteris paribus, be reflected as a change in demand or a change in supply in the market for Charmin toilet paper – a normal good? Explain. Be sure to clearly identify a textbook variable or determinant that is causing this change. Would this change be an increase or decrease? Explain.��� Would this change result in a surplus or in a shortage in the market for Charmin toilet paper? Explain. Given this surplus or shortage, how will a new equilibrium be established? What do you predict will happen to the equilibrium price and the equilibrium quantity exchanged in the market for Charmin toilet paper? Explain.arrow_forward
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