EBK MICROECONOMICS
9th Edition
ISBN: 8220103630955
Author: Rubinfeld
Publisher: PEARSON
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Chapter 4, Problem 15E
To determine
Decision regarding the reduction in the crop production.
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We obtain the following demand curve of beef in a market: Q = 44506.941 - 3338.553 ln(P), where Q is quantity demanded of beef measured in pounds, P is price measured in dollars per pound. We know the average of P is 8.781 and the average of Q is 13016.956. Based on this information, if the price increases by 1 dollar, the quantity demanded decreases by ____%.
the answer is 2.921, I need the step by step solution to get the answer
In mid-2010, Saudi Arabia and Venezuela (both members of OPEC) produced an average of 8 million and 3 million barrels of oil a day, respectively. Production costs were about $20 per barrel, and the price of oil averaged $80 per barrel. Each country had the capacity to produce an extra 1 million barrels per day. At that time, it was estimated that each 1-million-barrel increase in supply would depress the average price of oil by $10. Consider the competition between Saudi Arabia and Venezuela as a game.
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Chapter 4 Solutions
EBK MICROECONOMICS
Ch. 4.A - Prob. 1ECh. 4.A - Prob. 2ECh. 4.A - Prob. 3ECh. 4.A - Prob. 4ECh. 4.A - Prob. 5ECh. 4 - Prob. 1RQCh. 4 - Prob. 2RQCh. 4 - Prob. 3RQCh. 4 - Prob. 4RQCh. 4 - Prob. 5RQ
Ch. 4 - Prob. 6RQCh. 4 - Prob. 7RQCh. 4 - Prob. 8RQCh. 4 - Prob. 9RQCh. 4 - Prob. 10RQCh. 4 - Prob. 11RQCh. 4 - Prob. 12RQCh. 4 - Prob. 1ECh. 4 - Prob. 2ECh. 4 - Prob. 3ECh. 4 - Prob. 4ECh. 4 - Prob. 5ECh. 4 - Prob. 6ECh. 4 - Prob. 7ECh. 4 - Judy has decided to allocate exactly 500 to...Ch. 4 - The ACME Corporation determines that at current...Ch. 4 - Prob. 10ECh. 4 - Prob. 11ECh. 4 - Prob. 12ECh. 4 - Prob. 13ECh. 4 - Prob. 14ECh. 4 - Prob. 15ECh. 4 - Prob. 16E
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- We obtain the following demand curve of beef in a market: Q = 44506.941 - 3338.553 ln(P), where Q is quantity demanded of beef measured in pounds, P is price measured in dollars per pound. We know 8.781 and 13016.956. Based on this information, if price increases by 1 dollar, quantity demanded decreases by ____%. (Only type in the number in your answer, do not type in the percentage sign "%" again.)arrow_forwardThe Reinheitsgebot is a set of laws established in the 1500s that regulate the production and sale of beer in Germany. Among its provisions, the edict set maximum prices that brewers could charge at various times of the year: During Oktoberfest, the price for one [Bavarian Liter] is not to exceed one Pfennig (Penny, Munich value). Suppose that the demand for beer is given by SQD = 6000-1600P, and the supply of beer is given by QS = -1000+2000P. Graph the supply and demand for beer. T IIII IIII LJ-J- l- IIII 1-1-- -+-+ - I - L-4-L --4-L---- L--L- IIII IIII IIII IIII ---- - IIII T-T-r IIII -LJ-J-I. IIII IIII -LJ-J-I %3D 3Darrow_forwardWe obtain the following demand curve of beef in a market: = 30302.189-4303.602 In (P), where Q is quantity demanded of beef measured in pounds, P is price measured in dollars per pound. We know P = 8.906 and Q=12027.759. Based on this information, if price increases by 1 dollar, quantity demanded decreases by _%. (Only type in the number in your answer, do not type in the percentage sign "%" again.)arrow_forward
- Demand for parking in the City of Chambana is given by Qd = 210 – 0.5P, and the supply is Qs= P – 90, where price is in cents per car per day and quantity is in hundreds of cars parked per day. Draw a graph of the given demand and supply curve and label it as D0 and S0. Indicate numerically all relevant intercepts for your demand and supply curves on your graph. Find the short run equilibrium price and quantity in this market and label the numbers you found on the graph. State your equilibrium price and quantity under your graph; be careful in correctly using the units of measurement indicated in the directions for this question. Now, suppose that in order to fund improvements to the city’s parking garage, the city institutes a tax of 30 cents per unit of parking sold. E. Depict the effect of the tax by drawing an effective supply curve and label it as S1. Clearly show the direction of the shift and label the exact dollar amount by which it shifts. F. Indicate numerically all relevant…arrow_forwardThe market for coffee (drink) in the country of Kopimana is perfectly competitive. Kopimana is a small exporter of coffee beans, where the crop is grown by many small farm-holdings. Suppose that bad weather conditions destroyed a significant proportion of the coffee bean crop in Kopimana which reduced the income of the coffee bean farmers. To assist these farmers, the government of Kopimana decided to give them an export subsidy such that the quantity of coffee beans exported by Kopimana would remain constant (unchanged). Based on the scenario described, answer the following questions: a) Since the quantity of coffee beans exported is unchanged, would the coffee bean producers be better-off, worse-off, or as well-off as before? Explain your analysis and illustrate using demand and supply curves. (Hint: you may include a welfare table to support your analysis). b) Is there any deadweight loss in the market for coffee beans? Explain your aner and illustrate using your diagram in part…arrow_forwardA local store will buy 20 doorbell cameras from a supplier if the price is $77 each. If the price drops to $27 , then the store will buy 30 . The supplier is willing to sell 66 doorbell cameras for the price of $50.50 each, but only 49 at a price of $42.00 each. Find the supply and demand functions and the market equilibrium point. Assume both the supply and demand are linear. Use integers, fractions or decimals to describe the slopes and p-intercepts. A) What is the equation for the demand? p= B) What is the equation for the supply? p= c) What is the market equilibrium point?Explain in detailsarrow_forward
- Q3. Let D(x) and S(x) represent, respectively, the Demand and Supply functions, for a certain commodity, where y is the unit price and x is the number of items for that unit price. For the given Demand and Supply functions. Demand: D(x) = y = -2x +100 Supply: S(x) = y = x² + 4x – 60 a) Find the equilibrium quantity (if it exists) [Spts] b) Find the equilibrium price. [5pts] c) For which values of x, market has shortage. [5pts] d) For which values of x, market has surplus. [5pts] e) Draw the graphs of demand and supply functions on the same coordinate systems. [5pts]arrow_forwardAssume that the market of pens consists of three consumers who's demand curves are P=15-0.5Qa. P=5-0.111Qb and P=5-0.2Qc. The supply function given is P=5-0.25Qs.a) calculate the market price and output for pens for the month of March 2023 and show your answer graphically.arrow_forward1. As an agriculture analyst for the Union of American Fruit Producers (UAFP), you are in charge of monitoring the US peach market. The market can be described by the following "calibrated" demand and supply functions: Qd = 1600-8P +8Pn Qs = 34P-102 (1) (2) where P is the price of a crate of peaches, Pn is the price for a crate of nectarines, and Qd and Q, are the quantity demanded and the quantity supplied of peaches (measured in thousands of crates). (a) Find the inverse demand and inverse supply equations. Hypothetically, how many crates of peaches should UAFP expect consumers to buy if peaches are given away free of charge in a marketing campaign? If the price of a crate of peaches was to increase, at what price would buyers no longer be willing to buy any peaches? (Hint: your previous answers will be expressions that depend on the value of P) If the price of peaches was to decrease, at what price would the quantity of peaches supplied fall to zero? (b) Assuming that P₁ = $55,…arrow_forward
- The Reinheitsgebot is a set of laws established in the 1500s that regulate the production and sale of beer in Germany. Among its provisions, the edict set maximum prices that brewers could charge at various times of the year: During Oktoberfest, the price for one [Bavarian Liter] is not to exceed one Pfennig (Penny, Munich value). Suppose that the demand for beer is given by $QD = 6000-1600P, and the supply of beer is given by QS = -1000+2000P. %3D Calculate the equilibrium price and quantity in a free market; then calculate consumer and producer surplus.arrow_forwardThe Reinheitsgebot is a set of laws established in the 1500s that regulate the production and sale of beer in Germany. Among its provisions, the edict set maximum prices that brewers could charge at various times of the year: During Oktoberfest, the price for one [Bavarian Liter] is not to exceed one Pfennig (Penny, Munich value). Suppose that the demand for beer is given by $QD = 6000-1600P, and the supply of beer is given by QS = -1000+2000P. Calculate the consumer surplus received by beer drinkers and the producer surplus received by beer producers after a 1-Pfennig price ceiling is imposed.arrow_forwardBoth the supply and the demand for crude oil seem to be price inelastic. It implies that changes in the price of crude oil have a relatively small effect on the quantity demanded or supplied. On the demand side, people as well as businesses tend to continue using oil products even after its price increases, as there are often few substitutes in the short run. That is why there is still growing demand for crude oil. On the supply side, it is difficult as well as expensive for the producers to quickly increase or stop oil production as a response to price changes. Therefore, even after a price rise, the supply is not enough to meet demand. It implies that any given change in supply or demand is likely to have a comparatively large effect on the equilibrium price than on the quantity of crude oil (the percentage change in the price will be higher than the percentage change in quantity). Draw a graph to show the information abovearrow_forward
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