Microeconomics
11th Edition
ISBN: 9781260507140
Author: David C. Colander
Publisher: McGraw Hill Education
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Question
Chapter 4, Problem 24QE
(a)
To determine
The impact of an increase in the demand for pencils on the price of pencils.
(b)
To determine
The impact of an increase in the supply of labour on the quantity of labour demanded.
(c)
To determine
The impact of an increase in aggregate saving on aggregate expenditures.
(d)
To determine
The impact of a new method of producing CDs on the price of CDs.
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Discuss clearly how the following items may affects the change in demand.
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The monthly market for U.S. steel production (in millions of tons per month) is described in the table below. An increase in the price of
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(Hint 200,000 tons = 0.2 million tons.)
Instructions: Round your answers to one decimal place.
a. Fill in the new supply schedule in the table using the "New Quantity of Steel Supplied" column.
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Price (dollars per Initial Quantity of Steel Demanded
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$650
1.2
6480
630
620
618
608
598
580
570
568
P=$
per ton
P=$
1.3
1.4
1.5
per ton
1.6
1.7
1.8
1.9
b. What are the initial equilibrium price and quantity in the steel market?
2
2.1
million tons of steel
s. What are the new equilibrium price and quantity in the market?
Initial Quantity of Steel Supplied
(millions of tons)
2.2
million tons of steel
2.1
2
1.9
1.8
1.7
1.6
1.5
1.4
1.3
New Quantity of Steel Supplied
(millions of…
In each of the following cases, determine how supply or demand shifts and how the equilibrium changes.
Select the correct answer in each blank space (_______)
a. Smartphones: Microchips used in smartphones become less costly to produce. As a result, the __________________( *Supply of and demand for, *Supply of, or *Demand for) smartphones increase(s), causing the equilibrium price to (*Rise, *Fall, or *Rise, fall or remain unchanged) and the equilibrium quantity to (*Rise, fall or remain unchanged, *Rise, *Fall)
b. ALS medical research funds: The ALS ice bucket challenge goes viral, leading to greater awareness of the benefits of and need for ALS research. As a result, the _____________ ( *Supply of and demand for, *Supply of, or *Demand for) ALS research increase(s), causing the equilibrium price (or opportunity cost) of such research to __________ (*Rise, fall or remain unchanged, *Rise, *Fall) and the equilibrium quantity to __________ (*Rise, fall or remain…
Chapter 4 Solutions
Microeconomics
Ch. 4.1 - Prob. 1QCh. 4.1 - Prob. 2QCh. 4.1 - Prob. 3QCh. 4.1 - Prob. 4QCh. 4.1 - Prob. 5QCh. 4.1 - Prob. 6QCh. 4.1 - Prob. 7QCh. 4.1 - Prob. 8QCh. 4.1 - Prob. 9QCh. 4.1 - Prob. 10Q
Ch. 4 - Prob. 1QECh. 4 - Prob. 2QECh. 4 - Prob. 3QECh. 4 - Prob. 4QECh. 4 - Prob. 5QECh. 4 - Prob. 6QECh. 4 - Prob. 7QECh. 4 - Prob. 8QECh. 4 - Prob. 9QECh. 4 - Prob. 10QECh. 4 - Prob. 11QECh. 4 - Prob. 12QECh. 4 - Prob. 13QECh. 4 - Prob. 14QECh. 4 - Prob. 15QECh. 4 - Prob. 16QECh. 4 - Prob. 17QECh. 4 - Prob. 18QECh. 4 - Prob. 19QECh. 4 - Prob. 20QECh. 4 - Prob. 21QECh. 4 - Prob. 22QECh. 4 - Prob. 23QECh. 4 - Prob. 24QECh. 4 - Prob. 1QAPCh. 4 - Prob. 2QAPCh. 4 - Prob. 3QAPCh. 4 - Prob. 4QAPCh. 4 - Prob. 5QAPCh. 4 - Prob. 6QAPCh. 4 - Prob. 1IPCh. 4 - Prob. 2IPCh. 4 - Prob. 3IPCh. 4 - Prob. 4IPCh. 4 - Prob. 5IP
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