Microeconomics (7th Edition)
7th Edition
ISBN: 9780134737508
Author: R. Glenn Hubbard, Anthony Patrick O'Brien
Publisher: PEARSON
expand_more
expand_more
format_list_bulleted
Question
Chapter 4, Problem 4.3.12PA
To determine
The shortage of the goods.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solution
Students have asked these similar questions
Briefly explain and illustrate whether the following statement is true or false: ‘When there is a shortage of a good, consumers eventually give up trying to buy it, so the demand for the good declines, and the price falls until the market is finally in equilibrium’.
Briefly explain, by means of examples, the difference between a
maximum price and a minimum price.
18. Briefly explain whether each of the following represents a pub-
lic good.
a. A chef salad sold at the cafeteria in the county courthouse
b. Palm trees planted along the median of the Pacific
Coast Highway
c. A Doppler radar station built at Chicago's O'Hare
International Airport
d. A new roller coaster at Cedar Point, an amusement park in
Sandusky, Ohio
e. A new fleet of police cars for the Oklahoma City Police
Department
f. The Vietnam Memorial in Washington, D.C.
1'CC
Chapter 4 Solutions
Microeconomics (7th Edition)
Ch. 4.A - Prob. 1RQCh. 4.A - Prob. 2RQCh. 4.A - Prob. 3RQCh. 4.A - Why would economists use the term deadweight loss...Ch. 4.A - Prob. 5PACh. 4.A - Prob. 6PACh. 4.A - Prob. 7PACh. 4.A - Prob. 8PACh. 4.A - Prob. 9PACh. 4 - Prob. 1TC
Ch. 4 - Prob. 2TCCh. 4 - Prob. 4.1.1RQCh. 4 - Prob. 4.1.2RQCh. 4 - Prob. 4.1.3RQCh. 4 - Prob. 4.1.4RQCh. 4 - Prob. 4.1.5PACh. 4 - Prob. 4.1.6PACh. 4 - Prob. 4.1.7PACh. 4 - Prob. 4.1.8PACh. 4 - Prob. 4.1.9PACh. 4 - Prob. 4.1.10PACh. 4 - Prob. 4.1.11PACh. 4 - Prob. 4.1.12PACh. 4 - Prob. 4.1.13PACh. 4 - Prob. 4.1.14PACh. 4 - Prob. 4.2.1RQCh. 4 - Prob. 4.2.2RQCh. 4 - Prob. 4.2.3PACh. 4 - Prob. 4.2.4PACh. 4 - Prob. 4.2.5PACh. 4 - Prob. 4.2.6PACh. 4 - Prob. 4.2.7PACh. 4 - Prob. 4.2.8PACh. 4 - Prob. 4.2.9PACh. 4 - Prob. 4.2.10PACh. 4 - Prob. 4.3.1RQCh. 4 - Prob. 4.3.2RQCh. 4 - Prob. 4.3.3RQCh. 4 - Prob. 4.3.4RQCh. 4 - Prob. 4.3.5PACh. 4 - Prob. 4.3.6PACh. 4 - Prob. 4.3.7PACh. 4 - Prob. 4.3.8PACh. 4 - Prob. 4.3.9PACh. 4 - Prob. 4.3.10PACh. 4 - Prob. 4.3.11PACh. 4 - Prob. 4.3.12PACh. 4 - Prob. 4.3.13PACh. 4 - Prob. 4.3.14PACh. 4 - Prob. 4.3.15PACh. 4 - Prob. 4.3.16PACh. 4 - Prob. 4.3.17PACh. 4 - Prob. 4.3.18PACh. 4 - Prob. 4.3.19PACh. 4 - Prob. 4.4.1RQCh. 4 - Prob. 4.4.2RQCh. 4 - Prob. 4.4.3RQCh. 4 - As explained in the chapter, economic efficiency...Ch. 4 - Prob. 4.4.5PACh. 4 - Prob. 4.4.6PACh. 4 - Prob. 4.4.7PACh. 4 - Prob. 4.4.8PACh. 4 - Prob. 4.4.9PACh. 4 - Prob. 4.4.10PACh. 4 - Prob. 4.2CTE
Knowledge Booster
Similar questions
- What is equilibrium price and equilibrium quantity in economics.arrow_forwardThe following graph shows the market for cereal in San Diego, where there are over 1,000 stores that sell cereal at any given moment. Suppose a new scientific study shows that San Diego is the most polluted city in the world. Due to health concerns, a significant number of families move out of the city. *graph Now suppose Congress passes a new tax that decreases the income of San Diego residents. If cereal is a normal good, this will cause the demand for cereal to increase or decrease?arrow_forwardThe diagram describes the hypothetical demand and supply for canned tuna in Canada in 2022. a. Suppose the price of a can of tuna is $4.00. What is the quantity demanded? What is the quantity supplied? At this price, is there a shortage or a surplus? By what amount? If the price is $4.00, the quantity demanded is supplied is million cans. There is a (Round your responses to the nearest integer) million cans and the quantity by million cans. b. Suppose the price of a can of tuna is $2.50. What is the quantity demanded? What is the quantity supplied? At this price, is there a shortage or a surplus? By what amount? If the price is $2.50, the quantity demanded is supplied is million cans. There is a (Round your responses to the nearest integer) c. What is the equilibrium price and quantity in this market? million cans and the quantity by million cans. The equilibrium price is S per can, and the equilibrium quantity is milion Caris (Round your responses to the nearest integer) Price…arrow_forward
- .If a market is in equilibrium, is it necessarily true that all buyers and sellers are satisfied with the market price? Briefly explainarrow_forwardFirewood prices in places from northern California to Boston and New Jersey have remained steady even though the supply of firewood has been diminished by environmental restrictions on cutting trees. The Wall Street Journal reports that sales of gas fireplaces are outpacing sales of wood-burning heaths and that “people are burning less and less wood.” Use supply and demand analysis to show why firewood prices are not rising while the supply of firewood burned is declining. You must include a graph of the demand and supply curves of firewood and give an explanationarrow_forwardFirewood prices in places from northern California to Boston and suburban New Jersey have remained steady even though the supply of firewood has been diminished by environmental restrictions on cutting. The Wall Street Journal reports that sales of gas fireplaces are outpacing sales of wood-burning hearths and that “people are burning less and less wood.” Use supply and demand analysis to show why firewood prices are not rising while the quantity of firewood burned is declining.arrow_forward
- "As more people buy gym membership, the demand for running shoes will increase and the price of a pair of running shoes will rise. The rise in the price of a pair of running shoes will increase the supply of running shoes." This statement is _____ because _____. Group of answer choices true; when demand increases, supply increases so that the price of the good does not fall false; as the price of a pair of running shoes rises, the supply of running shoes does not increase false; the price of a pair of running shoes does not rise when the demand for running shoes increases true; when demand increases, supply increases so that no surplus occurs true; the increase in the price of a pair of running shoes increases the supply of running shoes, which eliminates any shortagearrow_forwardQ. 4 Please answer all parts of the question, thank you Fabric is used to make dresses. If the price of fabric increases what is likely to happen to the equilibrium price and quantity for dresses? If price stays the same would that be equilibrium? Why or why not? What will eventually happen in the market? What happens to equilibrium price and quantity? Which quantity is affected and how do you know? Illustrate using a graph.arrow_forwardSuppose that Carlos and Deborah are the only suppliers of pieces of cake in some hypothetical market. Their annual supply schedules are given by the following table: Carlos's Quantity Supplied Deborah's Quantity Supplied (Pieces) ITT 20 30 35 40 PRICE (Dollars per piece) (Dollars per piece) 5 Price 0 0 1 2 3 4 5 20 On the following graph, plot Carlos's supply of pieces of cake using the green points (triangle symbol). Next, plot Deborah's supply of pieces of cake using the purple points (diamond symbol). Finally, plot the market supply of pieces of cake using the orange points (square symbol). Note: Line segments will automatically connect the points. Remember to plot from left to right. (?) 40 60 80 QUANTITY (Pieces) 100 (Pieces) 120 20 40 55 65 70 Carlos's Supply Deborah's Supply O Market Supplyarrow_forward
- Back to Assignment Attempts: 1.5 Do No Harm: 1.5 / 2 8. Shifts in supply or demand I The following graph shows the market for peanut butter in Miami, where there are over 1,000 stores that sell peanut butter at any given moment. Suppose the Surgeon General issues a public statement saying that consuming peanut butter is bad for your health. Show the effect of this change on the market for peanut butter by shifting one or both of the curves on the following graph, holding all else constant. Note: Select and drag one or both of the curves to the desired position. Curves will snap into position, so if you try to move a curve and it snaps back to its original position, just drag it a little farther. DemandSupplyPRICE (Dollars per jar)QUANTITY (Jars)Demand Supply Now suppose Congress passes a new tax that decreases the income of Miami residents. If peanut butter is a normal good, this will cause the demand for peanut butter to .…arrow_forwardSuppose that Kenji and Lucia are the only suppliers of shoes in a particular market. The following table shows their annual supply schedules: # Price Kenji's Quantity Supplied Lucia's Quantity Supplied (Dollars per pair) (Pairs) 0 (Pairs) 16 10 20 16 32 30 24 44 40 28 52 50 32 56 On the following graph, plot Kenji's supply of shoes using the green points (triangle symbol). Next, plot Lucia's supply of shoes using the purple points (diamond symbol). Finally, plot the market supply of shoes using the orange points (square symbol). Note: Line segments will automatically connect the points. Remember to plot from left to right. (?) 60 T OL F11 ? 5 Esc 69°F Rain coming F1 ! F2 0- @ F3 0+ # F4 $ F5 % F6 F7 C F8 & F9 * F10 O 28 F12 Fn Lock 5 Insearrow_forwardAs a group, discuss different factors that would affect the market for donuts. Now, suppose that the price of sugar has increased and at the same time, it is January and many people have just done their New Year's resolutions, one of which is to eat less sugar. What will the impact be on the market for donuts?arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
Exploring EconomicsEconomicsISBN:9781544336329Author:Robert L. SextonPublisher:SAGE Publications, Inc
Microeconomics: Private and Public Choice (MindTa...EconomicsISBN:9781305506893Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. MacphersonPublisher:Cengage Learning
Macroeconomics: Private and Public Choice (MindTa...EconomicsISBN:9781305506756Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. MacphersonPublisher:Cengage Learning
Economics: Private and Public Choice (MindTap Cou...EconomicsISBN:9781305506725Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. MacphersonPublisher:Cengage Learning
Principles of Economics 2eEconomicsISBN:9781947172364Author:Steven A. Greenlaw; David ShapiroPublisher:OpenStax
Microeconomics: Principles & PolicyEconomicsISBN:9781337794992Author:William J. Baumol, Alan S. Blinder, John L. SolowPublisher:Cengage Learning
Exploring Economics
Economics
ISBN:9781544336329
Author:Robert L. Sexton
Publisher:SAGE Publications, Inc
Microeconomics: Private and Public Choice (MindTa...
Economics
ISBN:9781305506893
Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher:Cengage Learning
Macroeconomics: Private and Public Choice (MindTa...
Economics
ISBN:9781305506756
Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher:Cengage Learning
Economics: Private and Public Choice (MindTap Cou...
Economics
ISBN:9781305506725
Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher:Cengage Learning
Principles of Economics 2e
Economics
ISBN:9781947172364
Author:Steven A. Greenlaw; David Shapiro
Publisher:OpenStax
Microeconomics: Principles & Policy
Economics
ISBN:9781337794992
Author:William J. Baumol, Alan S. Blinder, John L. Solow
Publisher:Cengage Learning