Microeconomics
21st Edition
ISBN: 9781259915727
Author: Campbell R. McConnell, Stanley L. Brue, Sean Masaki Flynn Dr.
Publisher: McGraw-Hill Education
expand_more
expand_more
format_list_bulleted
Concept explainers
Question
Chapter 3.A, Problem 3AP
Sub part (a):
To determine
Quantity of supply.
Sub part (b):
To determine
Price in the secondary market.
Sub part (c):
To determine
Total demand .
Expert Solution & Answer
Trending nowThis is a popular solution!
Students have asked these similar questions
4. How will each of the following changes in demand and/or
supply affect equilibrium price and equilibrium quantity in a
competitive market; that is, do price and quantity rise, fall,
or remain unchanged, or are the answers indeterminate be-
cause they depend on the magnitudes of the shifts? Use sup-
ply and demand to verify your answers. LO3.5
a. Supply decreases and demand is constant.
b. Demand decreases and supply is constant.
c. Supply increases and demand is constant.
d. Demand increases and supply increases.
e. Demand increases and supply is constant.
f. Supply increases and demand decreases.
Next, complete the following graph, labeled Scenario 2, by shifting the supply and demand curves in the same way that you did on the Scenario 1
graph.
PRICE (Dollars per pen)
10
9
8
co
LO
5
+
3
2
1
0
0
1
Price
Quantity
2
Equilibrium Object
True
Scenario 2
3
False
Supply
4
5
6
7
QUANTITY (Millions of pens)
Demand
Scenario 1
8
9
Compare both the Scenario 1 and Scenario 2 graphs. Notice that after completing both graphs, you can now see a difference between them that
wasn't apparent before the shifts because each graph indicates different magnitudes for the supply and demand shifts in the market for pens.
10
Use the results of your answers on both the Scenario 1 and Scenario 2 graphs to complete the following table. Begin by indicating the overall change
in the equilibrium price and quantity after the shift in demand or supply for each shift-magnitude scenario. Then, in the final column, indicate the
resulting change in the equilibrium price and quantity when supply and demand shift in…
1.
Let (inverse) demand be Pb = 115 - 5 Qb and (inverse) supply be Pv = 29 + 4 Qv. What price
will prevail in the market if it is
competitive?
Answer: your answer
Price ($)
$140
$120
$100
$80
$ 60
$40
$20
$0
0
8
LO
5
Submit
Demand
10
Supply
Quantity
15
Eqm
20
25
Chapter 3 Solutions
Microeconomics
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 - Prob. 2APCh. 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
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
- Suppose that the incomes of buyers in a particular market for an inferior good increase and there is also an increase in input prices. What would we expect to occur in this market? Select one: O a. The equilibrium price would increase, but the impact on the amount sold in the market would be ambiguous. O b. The equilibrium price would decrease;but the impact on the amount sold in the market would be ambiguous. out Oc Equilibrium quantity would increase, but the impact on equilibrium price would be ambiguous. O d. Equilibrium quantity would decrease, but the impact on equilibrium price would be ambiguousarrow_forwardMarket for flat-screen TVs: Demand: Q=4,600 -3P Supply: Q-600 +1P What would be the equilibrium price and quantity for flat-screen TVs? O $1,600; 1,000 O $1,000; 1,600 O $2,000; 2,600 O $600; 3,000arrow_forwardThe graph shows the market for tutoring at a university. Price (per hour of tutoring) $25 20 15 10 7.50 LO 5 2.50 S D 100 200 300 400 500 600 700 800 900 Quantity (hours of tutoring per week) If there is a price floor of $15, consumer surplus is, in numerals, $.arrow_forward
- ADVANCED ANALYSIS Assume that demand for a commodity is represented by the equation P = 100-3Qd- Supply is represented by the equation P= -10 + 3Q,, where Qd and Qs are quantity demanded and quantity supplied, respectively, and Pis price. Instructions: Round your answer for price to 2 decimal places and enter your answer for quantity as a whole number. Using the equilibrium condition Qs Qd solve the equations to determine equilibrium price and equilibrium quantity. Equilibrium price = $ 50 Equilibrium quantity = 20 unitsarrow_forwardSuppose that the incomes of buyers in a particular market for a normal good decrease and there is also a reduction in input prices. What would we expect to occur in this market? Select one: O a. Equilibrium quantity would decrease, but the impact on equilibrium price would be ambiguous. cross out O b. The equilibrium price would decrease, but the impact on the amount sold in the market would be ambiguous. cross out cross out O c. Equilibrium quantity would increase, but the impact on equilibrium price would be ambiguous. cross out O d. The equilibrium price would increase, but the impact on the amount sold in the market would be ambiguous.arrow_forwardIf the government introduced a price ceiling that is 20 cents different from the present equilibrium price. What would the new quantity supplied be? Price p 1.00 1.40 1.00 O 42 O 43 O 44 45 44 41 12 Destity of milk per day a hands of 54arrow_forward
- The government offers subsidies to homeowners for the purchase and installation of solar energy generating equipment. Given that silicon (derived from silicate minerals) is the main input in the production of solar panels, how will the subsidy affect the market for silicon? O Supply will rise, leading to an increase in the equilibrium quantity and decrease in price. O Demand will fall, leading to a decrease in the equilibrium price and quantity. O None of the above. O Supply will fall, leading to an increase in the equilibrium price and decrease in the quantity. O Demand will rise, leading to an increase in the equilibrium price and quantity of silicon.arrow_forwardADVANCED ANALYSIS Assume that demand for a commodity is represented by the equation P=90−2Qd.P=90−2Qd.Supply is represented by the equation P=−5+3Qs,P=−5+3Qs,where Qd and Qs are quantity demanded and quantity supplied, respectively, and P is price.Instructions: Round your answer for price to 2 decimal places and enter your answer for quantity as a whole number. Using the equilibrium condition Qs = Qd, solve the equations to determine equilibrium price and equilibrium quantity. Equilibrium price = $ Equilibrium quantity = unitsarrow_forwardSuppose an economic boom causes incomes to increase and, at the same time, drives up wages for the sales representatives who work for cell phone companies. Assume that smartphones are a normal good. This will cause the: O price of cell phones and the equilibrium quantity to rise. O price of cell phones to rise, but the change in the equilibrium quantity is unclear and depends on whether the shift in demand is larger or smaller than the shift in supply. O price of cell phones and the equilibrium quantity to fall. O quantity of cell phones to rise, but the change in the equilibrium price is unclear and depends on whether the shift in demand is larger or smaller than the shift in supply.arrow_forward
- P1 P2 X The city of New York has imposed rent control (price ceiling) on 10% of the apartments. Where on the graph above would you find this restriction in relation to equilibrium and how would it affect the market? O P1 and it would create a surplus of apartments O P1 and it would create a shortage of apartments O P2 and it would create a surplus of apartments O P2 and it would create a shortage of apartmentsarrow_forward225323333 $8 $7 $1 Demand Curve for Cupcakes 12 3 D 5 6 7 8 Look at the demand curve above. Which of the following is NOT true in regards to the demand curve? O a Demand Curve will always slope down to the right O at a price of $1 there is a demand for 8 cupcakes O price is always drawn on the "X" axis O the graph only shows the relationship between price and the Quantity demand at that price O a demand curve is a graphic representation of a demand schedulearrow_forward3.30 3.00 Supply 2.70 2.40 2.10 Demand 1.80 1.50 1.20 0.90 0.60 0.30 50 100 150 200 250 300 350 400 Suppose that a price ceiling is set at $2.70. Which of the following is true? O a. There will be a shortage of 200 units Ob. There will be an excess supply of 100 units Oc. There will be a excess supply of 200 units Od. The ceiling is non-bindingarrow_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