Microeconomics (2nd Edition) (Pearson Series in Economics)
2nd Edition
ISBN: 9780134492049
Author: Daron Acemoglu, David Laibson, John List
Publisher: PEARSON
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Question
Chapter 4, Problem 11P
To determine
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Plot the demand and supply schedules. Identify the equilibrium price and quantity.
Price (P)
Quantity Demanded (Qd)
Quantity Supplied (Qs)
1
2
3
4
5
Suppose Jermaine and Tim are the only people in the market.
The curve DJ is Jermaine's demand curve and the curve DT is Tim's demand curve.
Draw the market demand curve and label it.
(If you plot any points to help you draw the curve, you must erase the points before
submitting the Problem Set).
Price (dollars per bag)
6.00
5.00-
4.00-
3.00-
2.00-
1.00
0.00+
0
DJ
1 2 3 4 5 6 7
Quantity (bags per month)
8
Q
6.00
5.00-
4.00-
3.00-
2.00
1.00
0.00+
Price (dollars per bag)
DT
0 1 2 3 4 5 6 7 8 9 10 11 12
Quantity (bags per month)
6.00
5.00
4.00-
3.00-
2.00-
1.00-
0.00+
0
Price (dollars per bag)
-~
2
4
to
6 8 10 12 14 16
Quantity (bags per month)
18 20
Q
Q
Consider the market for apples. For each of the following separate scenarios, determine if the
demand curve or supply curve shifts, and in which direction does the curve shift.
Farmers receive subsidies for growing
apples.
[ Choose ]
[ Choose ]
Supply of apples shifts to the left.
Price of apples increases.
Demand for apples shifts to the left.
Supply of apples shifts to the right.
A new apple commercial airs on TV.
Demand for apples shifts to the right.
Neither demand for apples nor supply of apples shifts.
A study is released showing apples
improve eyesight.
[ Choose ]
Price of oranges decreases. Oranges
and apples are substitutes.
[ Choose ]
Because of drought, the amount of
apples harvested decreases
significantly.
[ Choose ]
>
>
Chapter 4 Solutions
Microeconomics (2nd Edition) (Pearson Series in Economics)
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Similar questions
- Suppose that there is an increase in the equilibrium price (=rent) and quantity (=units rented) of condos in Santa Barbara. Which of the following could be the cause of this change? The demand for condos increased and the supply did not change. The supply of condos increased and the demand for condos did not change. Both the demand and supply of condos decreased. Both the demand and the supply for condos increased and supply increased by more than the demand.arrow_forwardHow would [1] a decrease in the price of flour and [2] an improvement in technology of pizza making would affect the market price and quantity of pizza, other things remaining constant? The price of pizza would drop and the equilibrium quantity would rise. The price of pizza would drop but the impact on the equilibrium quantity is uncertain. The equilibrium quantity of pizza would rise but the impact on price is uncertain. Both the price as well as the equilibrium quantity of pizza would rise.arrow_forwardThe market for gasoline has changed in a couple significant ways over the last few years: new technologies have decreased the costs associated with producing gasoline, and automobiles are becoming more fuel efficient. Describe how these changes affect the supply of and demand for gasoline. What is the overall effect on equilibrium price?arrow_forward
- The price of strawberries has risen by 50% in the last month. Using a supply/demand graph and the Four Step approach, illustrate the results of this change in the market. Mark any changes to equilibrium.arrow_forwardThe demand and supply schedules for gum are in the table. Price Quantity demanded Quantitysupplied (cents per pack) (millions of packs a week) 20 180 60 40 140 100 60 100 140 80 60 180 Suppose that the price of gum is 70¢ a pack. Describe the situation in the gum market and explain how the price adjusts. Suppose that the price of gum is 30¢ a pack. Describe the situation in the gum market and explain how the price adjusts. Explain and show the effect of each of these events on the market for gum uThe labor wage of gum rises Decrease in the prices of substitute good of gum Advertisement on social media about new flavors of the gum introducedarrow_forwardThe following graph shows the annual market for Florida oranges, which are sold in units of 90-pound boxes. (a). In this market, the equilibrium price is $______ per box. The equilibrium quantity of oranges is ____ million boxes. (b). For each price listed in the following table, determine the quantity of oranges demanded, the quantity of oranges supplied, and the direction of pressure exerted on prices in the absence of any price controls. pressure on prices options: upward, downwardarrow_forward
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