Microeconomics
21st Edition
ISBN: 9781259915727
Author: Campbell R. McConnell, Stanley L. Brue, Sean Masaki Flynn Dr.
Publisher: McGraw-Hill Education
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Question
Chapter 3.A, Problem 5ADQ
To determine
Demand and supply.
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3. Refer to the expanded table below from review question 8.
LO3.4
a. What is the equilibrium price? At what price is there nei-
ther a shortage nor a surplus? Fill in the surplus-shortage
column and use it to confirm your answers.
b. Graph the demand for wheat and the supply of wheat. Be
sure to label the axes of your graph correctly. Label equi-
librium price Pand equilibrium quantity Q.
c. How big is the surplus or shortage at $3.40? At $4.90?
How big a surplus or shortage results if the price is 60
cents higher than the equilibrium price? 30 cents lower
than the equilibrium price?
Thousands
of Bushels
Surplus (+)
or
Shortage (-)
Thousands
Price per
Bushel
of Bushels
Supplied
Demanded
85
$3.40
72
80
3.70
73
75
4.00
75
70
4.30
77
65
4.60
79
60
4.90
81
a.
b.
Test Your Understanding
Price
Supply 1
$4.00
60
4.25
70
4.50
80
4.75
90
(5.00
100
5.25
110
5.50
120
What are equilibrium price and quantity?
Supply increases by 50% - what are the new equilibrium
price and quantity?
Demand
140
130
120
110
100
90
80
2014 McGraw-Hill Ryerson Limited
Supply 2
LO6
2-45
Figure 5 below represents two different shifts that occurs in the market for potato chips. All of the shifts go from the curves labeled with a "1" to
curves labeled with a "2". Assume that potato chips are an inferior good. Refer to the figure as you answer the questions that follow.
P
Shift 1
S2
S1
D1
Figure 5
Shift 2
S1
D1
D2
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
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Similar questions
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- Suppose 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_forwardIn recent years the consumption of cobalt, which is used in the manufacture of batteries for electric automobiles, has risen but the price of cobalt has fallen. This is because the supply of cobalt has ______ and the demand for cobalt has____ B) decreased: also decreased O C increased; decreased A) decreased increased O D) increased: also increasedarrow_forwardThe 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_forward
- 100 200 300 400 500 600 Quantity (millions of bushels of wheat) In the figure, the equilibrium price is initially $3 per bushel of wheat. If suppliers come to expect that. the price of a bushel of wheat will rise in the future, but buyers do not, the current equilibrium price will Select one: O a. not change. O b. Perhaps rise, fall, or stay the same, depending on whether there are more demanders or suppliers in the market. O c. rise. O d. fall. 4. 2. Price (dollars per bushel of wheatarrow_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_forwardQuantity Demanded 6 7 8 9 10 11 12 Price $8 7 6 5 4 3 2 Refer to the above table. If demand decreased by 4 units at each price and supply decreased by 2 units at each price, what would the new equilibrium price and quantity be? Multiple Choice O $6 and 6 units $5 and 5 units O $4 and 6 units Quantity Supplied 10 9 8 7 6 5 4 $7 and 7 unitsarrow_forward
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