EBK INTERMEDIATE MICROECONOMICS AND ITS
12th Edition
ISBN: 9781305176386
Author: Snyder
Publisher: YUZU
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Question
Chapter 3, Problem 6RQ
To determine
The reason for drawing a horizontal line at the prevailing price of P*x, and the effectsfor each person facing this price.
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Consider 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?
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Suppose that clothes workers at a certain factory accept a pay cut of $3 per hour.
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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.
Suppose that you, Julio, and Yusef constitute the market for CDs. Your demand for CDs is illustrated in
the graph to the right (D₁), along with Julio's demand (D₂) and Yusef's demand (D3).
Using the line drawing tool, construct the market demand curve for CDs. To do this, you will need to use
three line segments labeled Dsegment 1, Dsegment 2, and Dsegment 3-
Carefully follow the instructions above, and only draw the required objects.
Price of CDs
30 D3
28-
26-
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20-92
18+
16-
14-
12-
10-01
8-
6-
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2-
0-
0
2
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8 10 12 14 16 18 20 22 24 26 28 30
Quantity of CDs
Let's say that the demand side of the market for Blue Soda is comprised of 3 leading agents/individuals: Anthony, Brad, and Claire. Let P be the price of 1 liter of Blue Soda, and Qd be the quantity demanded of Blue Soda in liters.
Here are the key points to the problem:
- Anthony buys only one liter of Blue Soda if the price of it falls below his choke price of $10.
- Brad's demand for Blue Soda is defined by QdB = 5 - P/2
- Claire buys 2 liters if the price is below $5, 1 liter if the price is between $5 and $10, and nothing if the price is above $10.
Using this information, please sketch the individual demands and the market demand by aggregating the three agents/individuals. Label the graph clearly. Please make sure to sketch the individual demands first and then sketch the market demand.
Chapter 3 Solutions
EBK INTERMEDIATE MICROECONOMICS AND ITS
Ch. 3.2 - Prob. 1MQCh. 3.2 - Prob. 2MQCh. 3.3 - Prob. 1TTACh. 3.3 - Prob. 2TTACh. 3.3 - Prob. 2MQCh. 3.4 - Prob. 1TTACh. 3.4 - Prob. 2TTACh. 3.5 - Prob. 1MQCh. 3.5 - Prob. 2MQCh. 3.7 - Prob. 1MQ
Ch. 3.7 - Prob. 2MQCh. 3.9 - Prob. 1MQCh. 3.9 - Prob. 2MQCh. 3.10 - Prob. 1TTACh. 3.10 - Prob. 2TTACh. 3.11 - Prob. 1MQCh. 3.11 - Prob. 2MQCh. 3.12 - Prob. 1TTACh. 3.12 - Prob. 2TTACh. 3.12 - Prob. 1MQCh. 3.12 - Prob. 2MQCh. 3.12 - Prob. 1.1TTACh. 3.12 - Prob. 2.1TTACh. 3.14 - Prob. 1MQCh. 3.14 - Prob. 2MQCh. 3.14 - Prob. 1TTACh. 3.14 - Prob. 2TTACh. 3.15 - Prob. 1MQCh. 3.15 - Prob. 2MQCh. 3 - Prob. 1RQCh. 3 - Prob. 2RQCh. 3 - Prob. 3RQCh. 3 - Prob. 5RQCh. 3 - Prob. 6RQCh. 3 - Prob. 7RQCh. 3 - Prob. 8RQCh. 3 - Prob. 9RQCh. 3 - Prob. 10RQCh. 3 - Prob. 3.1PCh. 3 - Prob. 3.2PCh. 3 - Prob. 3.3PCh. 3 - Prob. 3.4PCh. 3 - Prob. 3.5PCh. 3 - Prob. 3.6PCh. 3 - Prob. 3.7PCh. 3 - Prob. 3.8PCh. 3 - Prob. 3.9PCh. 3 - Prob. 3.10P
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