Exploring Macroeconomics
8th Edition
ISBN: 9781544337722
Author: Robert L. Sexton
Publisher: SAGE Publications, Inc
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Question
Chapter 4, Problem 15P
To determine
(a)
Effect on the supply of corn if the price of the corn rose.
To determine
(b)
Effect on the supply of wheat if the price of corn rose.
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Students have asked these similar questions
Suppose that there are two companies that produce mobile phones: Brand A and Brand B.
Explain how each of the following events will affect the market for Brand A phones by
using supply and demand diagrams (mention the changes in equilibrium price and quantity):
a) Price of Brand B phones increased.
b) Brand A's factory's production capacity dropped because of a shortage in raw
materials supplies.
c) Brand A has developed a new technology that allows to assemble the phone's
components in a cheaper way.
PLEASE MAKE A SUPPLY AND DEMAND GRAPH BASED ON THIS EXPLAINATION
The high demand for onions in the Philippines combined with low supply has led to an increase in prices. The average monthly demand for onions in the country is around 17,000 metric tons but the current supply is not enough to meet the demand. This has resulted in a shift in the demand curve to the right and the supply curve to the left, causing the market equilibrium to move from point E to point F, resulting in an increase in both price and quantity.
Reason of the shift: The price increase of onions in the Philippines can be attributed to several factors, including global inflation, failure of the agriculture department to make accurate supply projections, possible internal price manipulation, and a shortage of supply due to smuggling.
Homework (Ch 07)
The following graph shows the supply curve for a group of sellers in the U.S. market for smartphones (orange line). Each seller has only one
smartphone to sell. The market price of a smartphone is shown by the black horizontal line at $105.
Each rectangle on the graph corresponds to a particular seller in this market: blue (circle symbols) for Jacques, green (triangle symbols) for Kyoko,
purple (diamond symbols) for Musashi, tan (dash symbols) for Rina, and orange (square symbols) for Sean. (Note: The name labels are to the right of
the corresponding segment on the supply curve.)
Use the rectangles to shade the areas representing producer surplus for each person who is willing to sell a smartphone at a market price of $105.
(Note: If a person will not sell a smartphone at the market price, indicate this by leaving his or her rectangle in its original position on the palette.)
?
240
210
Sean
Jacques
180
150
Kyoko
120
90
Musashi
60
C O
PRICE (Dollars per smartphone)…
Chapter 4 Solutions
Exploring Macroeconomics
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Similar questions
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