Principles of Economics 2e
2nd Edition
ISBN: 9781947172364
Author: Steven A. Greenlaw; David Shapiro
Publisher: OpenStax
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Textbook Question
Chapter 4, Problem 28P
Identify each of the following as involving either
- Households in the labor market
- Firms in the goods market
- Firms in the financial market
- Households in the goods market
- Firms in the labor market
- Households in the financial market
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For each of the events describe below, you are required to explain:
1. The market you are evaluating (e.g., labour market, automotive market, etc).
2. Does the event act on the demand side, supply side, or both sides of the market?
3. Does the event lead to a quantity or price change? Or does the event lead to a shift in
demand, supply, or both?
Make sure to explain what sort of assumptions you are making on the elasticities of demand
and supply (when plotting your demand and supply, describe whether you are assuming an
elastic or inelastic demand/supply).
a) A reduction of supply as a consequence of a disruption in the world oil markets
b) The implementation of a minimum wage
c) The implementation of taxes to manufacturing of cars in Australia
d) The implementation of a Carbon tax in the economy. A Carbon tax is charged
according to the level of emissions of greenhouse gases in an economy.
e) The implementation of a new loan program to university students in the education
sector
For each of the events describe below, you are required to explain:1. The market you are evaluating (e.g., labour market, automotive market, etc).2. Does the event act on the demand side, supply side, or both sides of the market?3. Does the event lead to a quantity or price change? Or does the event lead to a shift indemand, supply, or both?Make sure to explain what sort of assumptions you are making on the elasticities of demandand supply (when plotting your demand and supply, describe whether you are assuming anelastic or inelastic demand/supply).a) A concerted reduction in the total production level in oil markets.b) The implementation of a minimum wage.c) The implementation of subsidies to agricultural production in Australiad) The implementation of a Carbon tax in the resources exploitation sector. A Carbon taxis charged according to the level of emissions of greenhouse gases in an economy.e) The implementation of a new loan program to university students in the education
For each of the events describe below, you are required to explain:1. The market you are evaluating (e.g., labour market, automotive market, etc).2. Does the event act on the demand side, supply side, or both sides of the market?3. Does the event lead to a quantity or price change? Or does the event lead to a shift indemand, supply, or both?Make sure to explain what sort of assumptions you are making on the elasticities of demandand supply (when plotting your demand and supply, describe whether you are assuming anelastic or inelastic demand/supply).a) A reduction of supply as a consequence of a disruption in the world oil marketsb) The implementation of a minimum wagec) The implementation of taxes to manufacturing of cars in Australiad) The implementation of a Carbon tax in the economy. A Carbon tax is chargedaccording to the level of emissions of greenhouse gases in an economy.e) The implementation of a new loan program to university students in the educationsector
Chapter 4 Solutions
Principles of Economics 2e
Ch. 4 - In the labor market, what causes a movement along...Ch. 4 - In the labor market, what causes a movement along...Ch. 4 - Why is a living wage considered a price floor?...Ch. 4 - In the financial market, what causes a movement...Ch. 4 - In the financial market, what causes a movement...Ch. 4 - If a usury law limits interest rates to no more...Ch. 4 - Which of the following changes in the financial...Ch. 4 - Which of the following changes in the financial...Ch. 4 - Identify the most accurate statement. A price...Ch. 4 - A price ceiling will have the largest effect:...
Ch. 4 - Select the correct answer. A price floor will...Ch. 4 - Select the correct answer. A price ceiling will...Ch. 4 - What is die price commonly called in the labor...Ch. 4 - Are households demanders or suppliers in the goods...Ch. 4 - Name some factors that can cause a shift in the...Ch. 4 - Name some factors that can cause- a shift in the...Ch. 4 - How do economists define equilibrium in financial...Ch. 4 - What would be a sign of a shortage in financial...Ch. 4 - Would usury laws help or hinder resolution of a...Ch. 4 - Whether the product market or the labor market,...Ch. 4 - Other than the demand for labor, what would be...Ch. 4 - Suppose that a 5 increase in the minimum wag...Ch. 4 - Under what Circumstances would a minimum wage be a...Ch. 4 - Suppose the U.S. economy began to grow more...Ch. 4 - If the government imposed a federal interest rate...Ch. 4 - Why are the factors that shift the demand for a...Ch. 4 - During a discussion several year; ago on building...Ch. 4 - Identify each of the following as involving either...Ch. 4 - Predict how each of the following events will...Ch. 4 - Predict how each of the following economic changes...Ch. 4 - Table 4.6 shows the amount of savings and...Ch. 4 - Imagine that to preserve the traditional way of...Ch. 4 - What happens to the price and the quantity bought...
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