Economics (Irwin Economics)
21st Edition
ISBN: 9781259723223
Author: Campbell R. McConnell, Stanley L. Brue, Sean Masaki Flynn Dr.
Publisher: McGraw-Hill Education
expand_more
expand_more
format_list_bulleted
Question
Chapter 3, Problem 3P
Subpart (a):
To determine
Shortage or surplus.
Given information:
Table 1 shows the
Thousands of bushels demanded | Price |
Thousands of bushels supplied | Shortage or surplus |
85 | 3.4 | 72 | - |
80 | 3.7 | 73 | - |
75 | 4 | 75 | - |
70 | 4.3 | 77 | - |
65 | 4.6 | 79 | - |
60 | 4.9 | 81 | - |
Subparts (b):
To determine
Shortage or surplus.
Given information:
Table 1 shows the demand for bushels and supply of bushels:
Thousands of bushels demanded | Price |
Thousands of bushels supplied | Shortage or surplus |
85 | 3.4 | 72 | - |
80 | 3.7 | 73 | - |
75 | 4 | 75 | - |
70 | 4.3 | 77 | - |
65 | 4.6 | 79 | - |
60 | 4.9 | 81 | - |
Subparts (c):
To determine
Shortage or surplus.
Given information:
Table 1 shows the demand for bushels and supply of bushels:
Thousands of bushels demanded | Price |
Thousands of bushels supplied | Shortage or surplus |
85 | 3.4 | 72 | - |
80 | 3.7 | 73 | - |
75 | 4 | 75 | - |
70 | 4.3 | 77 | - |
65 | 4.6 | 79 | - |
60 | 4.9 | 81 | - |
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solutionStudents have asked these similar questions
Gasoline prices have been and will continue to be a major issue for the economy. From the start of
the Covid-19 pandemic up to the present day, gasoline prices have been in the news.
---What has happened to the price of gasoline over the past 12 months? Be specific and
include actual prices in your answer.
---Discuss the recent changes in price from a supply and demand standpoint. Have the
price changes been due to a change in supply, a change in demand, or both? Explain
your answer.
---How did Covid-19 affected the market for gasoline? Which of the main influences of
supply and demand do you think were responsible for the price changes? (See textbook
pages 90-91 and 97-98.) Be specific and explain why and how the "main influences" you
chose had an impact on the gasoline market.
Will the equilibrium price of orange juice increase or decrease in each of the following situations? LO7a.
A medical study reporting that orange juice reduces cancer is released at the same time that a freak storm destroys half of the orange crop in Florida.
The prices of all beverages except orange juice fall in half while unexpectedly perfect weather in Florida results in an orange crop that is 20 percent larger than normal.
The total demand for Cement and the total supply of Cement per month in the UAE construction market are as shown in the table below:
a) Suppose that the government establishes a price ceiling of Dh 295 per ton for ,Cement. What might prompt the government to establish this price ceiling? Explain carefully the main effects. Demonstrate your answer graphically.
b) Next, suppose that the government establishes a price floor of Dh 320 per ton for Cement. What will be the main effects of this price floor? Demonstrate your answer graphically.
c) Read the article below that published in Khaleej Times and state who sets the price ceiling in UAE? Also comment briefly on the cement prices in 2008 as compared to present cement prices? and comment if price ceiling action by the Government was / is effective.
Chapter 3 Solutions
Economics (Irwin Economics)
Ch. 3.6 - Prob. 1QQCh. 3.6 - Prob. 2QQCh. 3.6 - Prob. 3QQCh. 3.6 - Prob. 4QQCh. 3.A - Prob. 1ADQCh. 3.A - Prob. 2ADQCh. 3.A - Prob. 3ADQCh. 3.A - Prob. 4ADQCh. 3.A - Prob. 5ADQCh. 3.A - Prob. 6ADQ
Ch. 3.A - Prob. 7ADQCh. 3.A - Prob. 1ARQCh. 3.A - Prob. 2ARQCh. 3.A - Prob. 3ARQCh. 3.A - Prob. 4ARQCh. 3.A - Prob. 5ARQCh. 3.A - Prob. 6ARQCh. 3.A - Prob. 1APCh. 3.A - The following table shows two demand schedules for...Ch. 3.A - Prob. 3APCh. 3 - Prob. 1DQCh. 3 - Prob. 2DQCh. 3 - Prob. 3DQCh. 3 - Prob. 4DQCh. 3 - Prob. 5DQCh. 3 - Prob. 6DQCh. 3 - Prob. 7DQCh. 3 - Prob. 8DQCh. 3 - Prob. 1RQCh. 3 - Prob. 2RQCh. 3 - Prob. 3RQCh. 3 - Prob. 4RQCh. 3 - Prob. 5RQCh. 3 - Prob. 6RQCh. 3 - Prob. 7RQCh. 3 - Prob. 8RQCh. 3 - Prob. 9RQCh. 3 - Prob. 1PCh. 3 - Prob. 2PCh. 3 - Prob. 3PCh. 3 - Prob. 4PCh. 3 - Prob. 5PCh. 3 - Prob. 6PCh. 3 - Prob. 7P
Knowledge Booster
Similar questions
- Suppose the total demand for wheat and the total supply of wheat per month in the Kansas City grain market are as shown. Suppose that the government establishes a price ceiling of $3.70 for wheat. What might prompt the government to establish this price ceiling? Explain carefully the main effects. Demonstrate your answer graphically. Next, suppose that the government establishes a price floor of $4.60 for wheat. What will be the main effects of this price floor? Demonstrate your answer graphically.arrow_forwardUse the following table to answer the question below. Quantity Demanded Price Quantity Supplied 5 $7 9 6 6 8 7 5 7 8 4 6 9 3 5 10 2 4 11 1 3 If demand decreased by 4 units at each price, what would the new equilibrium price and quantity be? Multiple Choice $3 and 5 units $4 and 6 units $5 and 7 units $6 and 8 units Assume that the graphs show a competitive market for the product stated in the question. In graph 1, an increasing line, S intersects two decreasing lines, D1 and D2 at points E1 and E2, respectively. A positive shift from D1 to D2 (to the right) is shown with an increase in price from P1 to P2 and increase in quantity from q1 to q2. In graph 2, an increasing line, S intersects two decreasing lines, D1 and D2 at points E1 and E2, respectively. A negative shift from D1 to D2 (to the left) is shown with a decrease in price from P1 to P2 and decease in quantity from q1 to q2. In graph 3, two increasing lines, S1…arrow_forwardRespond to the following matching statements with regard to the definition of supply. Match 1: The claim that other things being equal, the quantity supplied of a good increase when the price of that good rises. This matches the Law of Supply. Match 2: A graphical object showing the relationship between the price of a good and the amount that sellers are willing and able to supply at various prices. This matches the Supply curve. O Both matches are false O Match 2 is correct and Match 1 is false. O Both matches are correct. O Match 1 is correct and Match 2 is false. Next 1 Previousarrow_forward
- L. At a price of $2.28 per bushel, the supply of barley is 7, 500 million bushels and the demand is 7,900 million bushels. At a price of $2.37 per bushel, the supply of barley is 7,900 million bushels and the demand is 7, 800 million bushels. (A) Find a price-supply equation of the form p ma+ b. (B) Find a price-demand equation of the form p mx+ b. (C) Find the equilibrium point.arrow_forwardSuppose that today the market for homes is in equilibrium. Tomorrow both the supply and demand curves for homes will shift to the right. As a result, the equilibrium price . and the equilibrium quantity . O will fall; will fall O will fall; will rise O cannot be determine; will fall O cannot be determined; will risearrow_forwardRefer to the supply and demand curve diagram below, if supply decrease by 25 units at each price level, what is the new equilibirum price and quantity? 2$ 10 9. 8. 6. 4. 1. 10 20 30 40 50 60 70 O A. P-$6 Q = 5 O B. P=$7 Q = 25 O C. P=$8 Q = 15 O D. P=$6 Q = 30arrow_forward
- Suppose that a market is described by the following supply and demand equations: Qs = 10P QD = 150-20P where Qs is the quantity supplied measured in units, QP is the quantity demanded measured in units, and P is the price measured in dollars. S₂ P 7.5 5.5 40 Qº=50 50 PS=$125 S₁ How are these calculated? TS=$187.5 D a. Solve for the equilibrium price and quantity in the market. pe=5 150 Q b. Calculate the consumer surplus, producer surplus, and the total surplus at the equilibrium. CS=$62.5arrow_forwardThe demand curve in the market for hats is described by the equation Qd = 30 - P, where Qd represents the quantity demanded of hats and P is the market price. The supply curve in the market for hats is described by the equation Qs= P - 20, where Qs represents the quantity supplied of hats and P is the market price. Which of the following prices is the equilibrium in market price. $30 O $15 O $25 $20arrow_forwardOn April 1, the price of gas at Bob's Corner Station was $4.95 per gallon. On May 1, the price was $5.45 per gallon. On June 1, it was back down to $4.95 per gallon. Between April 1 and May 1, Bob's price increased by or Between May 1 and June 1, Bob's price decreased by or Suppose that at a gas station across the street, prices are always 20% higher than Bob's. In absolute dollar terms, the difference between Bob's prices and the prices across the street is when gas costs $5.45 than when gas costs $4.95. Some economists blame high commodity prices (including the price of gas) on interest rates being too low. Suppose the Fed raises the target for the federal funds rate from 2% to 2.75%. This change of percentage points means that the Fed raised its target by approximatelyarrow_forward
- **JUST NEED GRAPH PART, THANK YOU!** Suppose that the (inverse) demand equation for organic tea is P = 230 - 4Qd and the (inverse) supply curve for organic tea is P = 0.6Qs in a local market. Quantities are measured in pounds per week, and price is measured in dollars per pound of tea. Find the equilibrium quantity and price in this market. Suppose recent regulations for organic tea production, established by the Food and Drug Administration, increase the costs for producers of organic tea. Under these regulations, the new (inverse) supply curve for tea is as follows: P = 16 + 0.6Qs. Find the new market equilibrium quantity and price under these conditions. (Assume that the demand equation remains the same.) Compare the original equilibrium quantity and price to the new equilibrium quantity and price. Has price fallen or risen? Has quantity exchanged fallen or risen? Sketch a supply-and-demand graph to illustrate the market before and after the regulation goes into effect. In this…arrow_forward2. Assume that the supply of imported macadamia nuts is perfectly inelastic at a quantity or 100 lbs/day. The domestic supply curve (lbs/day) of macadamia nuts is 200 p where p is the price of nuts in $/lbs. (a) Draw the supply curves for imported, domestic, and total (aggregate) supply of nuts. Clearly label each supply curve. Indicate the total (aggregate) market quantity at $0.50 and $1.00. Price 1.00 50 300 400 Quanty 100 200 (b) Now FreedomIsNuts, a U.S. nut producer group, convinces congress to ban imported macadamia nuts. Does the elasticity of total supply get larger, smaller, or stay the same? Explain.arrow_forward[MUST SHOW WORK] Consider the above table for the market for oranges. A deep frost destroys many or the orange juice businesses to go put of business. As a result, quantity supplied decreases hper kg and the new equilibrium quantiy is.........? kg of oranges The new equilibrium price is .............? kg of oranges Select one: O A. 1.70;400 O B. 1.10; 700 O C. 1.20;650 O D. 0.90;400 O E. 1.50;500arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
- Principles of Economics (12th Edition)EconomicsISBN:9780134078779Author:Karl E. Case, Ray C. Fair, Sharon E. OsterPublisher:PEARSONEngineering Economy (17th Edition)EconomicsISBN:9780134870069Author:William G. Sullivan, Elin M. Wicks, C. Patrick KoellingPublisher:PEARSON
- Principles of Economics (MindTap Course List)EconomicsISBN:9781305585126Author:N. Gregory MankiwPublisher:Cengage LearningManagerial Economics: A Problem Solving ApproachEconomicsISBN:9781337106665Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike ShorPublisher:Cengage LearningManagerial Economics & Business Strategy (Mcgraw-...EconomicsISBN:9781259290619Author:Michael Baye, Jeff PrincePublisher:McGraw-Hill Education
Principles of Economics (12th Edition)
Economics
ISBN:9780134078779
Author:Karl E. Case, Ray C. Fair, Sharon E. Oster
Publisher:PEARSON
Engineering Economy (17th Edition)
Economics
ISBN:9780134870069
Author:William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
Publisher:PEARSON
Principles of Economics (MindTap Course List)
Economics
ISBN:9781305585126
Author:N. Gregory Mankiw
Publisher:Cengage Learning
Managerial Economics: A Problem Solving Approach
Economics
ISBN:9781337106665
Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher:Cengage Learning
Managerial Economics & Business Strategy (Mcgraw-...
Economics
ISBN:9781259290619
Author:Michael Baye, Jeff Prince
Publisher:McGraw-Hill Education