MACROECONOMICS FOR TODAY
10th Edition
ISBN: 9781337613057
Author: Tucker
Publisher: CENGAGE L
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Chapter 3.A, Problem 4SQP
To determine
Identify the area in the given figure.
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Question 6
Price
Demand, D
Quantity
Refer to the figure above. An increase in the price of a substitute would be represented by a
movement from
0
OA) A to B
OB) B to A
OCD1 to D2.
OD) D2 to D1.
PRE-PROBLEM #8: Welfare Analysis
The estimated market demand function for electric vehicles (E) is QE = 200 - 6pE + 5Y,
and the supply function is QE = 100 + 4PE-
A. Solve for equilibrium price and quantity in the market for electric vehicles. The price
of electric vehicles is på and household income is Y. Currently household income, Y, is
40 (all dollar amounts are in thousand dollars).
B. At the market equilibrium, what is consumer surplus?
FYI: Use 40 in your calculations,
not 40,000. Also, your equilibrium
price and quantity results will also
be in thousands.
FYI: Since this is a straight-line
demand curve, consumer surplus
is the area of a triangle.
Area of triangle =(base*height)/2
C. Suppose that household income increases from 40 to 44 (thousand dollars). What is
consumer surplus in the market for electric vehicles at the new equilibrium?
FYI: With the increase in
household income, the demand
curve will shift out (electric
vehicle is a normal good). The
shift in demand leads to…
According to Hanushek & Quigley (1980), the estimated price elasticity of demand for
housing, Ed, ranges from -0.64 to -0.45.
Please interpret these elasticity estimates. Is demand elastic or inelastic? How
responsive is housing demand to changes in price?
Assume that the housing market is in equilibrium at p° = 100 and Q° = 100. Please
draw this market outcome under the separate assumptions of ɛa = -0.64 and
Ea = -0.45 (i.e., draw two separate demand curves, one of which is more price
elastic than the other). Be sure to label your graph accordingly.
Chapter 3 Solutions
MACROECONOMICS FOR TODAY
Ch. 3.7 - Prob. 1YTECh. 3.7 - Prob. 1GECh. 3.7 - Prob. 2GECh. 3.7 - Prob. 3GECh. 3.A - Prob. 1SQPCh. 3.A - Prob. 2SQPCh. 3.A - Prob. 3SQPCh. 3.A - Prob. 4SQPCh. 3.A - Prob. 1SQCh. 3.A - Prob. 2SQ
Ch. 3.A - Prob. 3SQCh. 3.A - Prob. 4SQCh. 3.A - Prob. 5SQCh. 3.A - Prob. 6SQCh. 3.A - Prob. 7SQCh. 3.A - Prob. 8SQCh. 3.A - Prob. 9SQCh. 3.A - Prob. 10SQCh. 3.A - Prob. 11SQCh. 3.A - Prob. 12SQCh. 3.A - Prob. 13SQCh. 3.A - Prob. 14SQCh. 3.A - Prob. 15SQCh. 3.A - Prob. 16SQCh. 3.A - Prob. 17SQCh. 3.A - Prob. 18SQCh. 3.A - Prob. 19SQCh. 3.A - Prob. 20SQCh. 3 - Prob. 1SQPCh. 3 - Prob. 2SQPCh. 3 - Prob. 3SQPCh. 3 - Prob. 4SQPCh. 3 - Prob. 5SQPCh. 3 - Prob. 6SQPCh. 3 - Prob. 7SQPCh. 3 - Prob. 8SQPCh. 3 - Prob. 9SQPCh. 3 - Prob. 10SQPCh. 3 - Prob. 11SQPCh. 3 - Prob. 12SQPCh. 3 - Prob. 1SQCh. 3 - Which of the following would not cause market...Ch. 3 - Prob. 3SQCh. 3 - Prob. 4SQCh. 3 - Prob. 5SQCh. 3 - Prob. 6SQCh. 3 - Prob. 7SQCh. 3 - Prob. 8SQCh. 3 - Prob. 9SQCh. 3 - Prob. 10SQCh. 3 - Prob. 11SQCh. 3 - Prob. 12SQCh. 3 - Prob. 13SQCh. 3 - Prob. 14SQCh. 3 - Prob. 15SQCh. 3 - Prob. 16SQCh. 3 - Prob. 17SQCh. 3 - Prob. 18SQCh. 3 - Prob. 19SQCh. 3 - Prob. 20SQCh. 3 - Prob. 21SQCh. 3 - Prob. 22SQCh. 3 - Prob. 23SQCh. 3 - Prob. 24SQCh. 3 - Prob. 25SQ
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