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
(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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Students have asked these similar questions
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
iron ore, a critical input in the production of steel, shifts the supply curve to the left, decreasing supply by 200,000 tons at each price.
(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.
Market for U.S. Steel
Price (dollars per Initial Quantity of Steel Demanded
ton)
(millions of tans)
$650
1.2
6480
630
620
618
608
598
580
570
568
P=$
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…
Problem 1. Indicate how the stated changes affect the market cquilibrium. Draw the supply and demand
diagram to illustrate the changes. In each case, write a one-sentence explanation.
P
P
P
3) The market for new cars: consumers' income taxes decrease.
b) The market for plane tickets: a study reveals the quality of cheap bus services has decreased.
c) The coffee market: a drought in Sri Lanka severely decreases the tea crop.
d) The US market for lobsters: China puts a ban on the imports of seafood from the US.
Consider the following scenarios. Think about how each scenario would affect the price of khaki pants.
A new technology reduces the time it takes to make a pair of khaki pants.
The price of the cloth used to make khaki pants falls.
The wage rate paid to garment workers increases.
The price of jeans increases.
People's incomes increase.
Assignment:
Address the following statements related to the scenario above.
Does each event change demand, supply, both, or neither? Explain your choice.
Does the event increase or decrease demand and/or supply? Explain your answer.
How does this change in demand and/or supply affect the equilibrium prices and quantity within the market?
Part 2
Compare the new demand curve or supply curve by drawing it on a graph
Find the new equilibrium and compare it with the original one in terms of equilibrium price and quantity and explain your findings
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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