Macroeconomics (7th Edition)
7th Edition
ISBN: 9780134738314
Author: R. Glenn Hubbard, Anthony Patrick O'Brien
Publisher: PEARSON
expand_more
expand_more
format_list_bulleted
Question
Chapter 4, Problem 4.3.19PA
Sub part (a):
To determine
The market for body parts such as kidneys.
Sub part (b):
To determine
The market for body parts such as kidneys and impact of legalization.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solution
Students have asked these similar questions
Economists in Champaign have been studying the local market for pizza.
The market is described in the graph:
Market for Pizza
12
11.3
10.8
10
9.7
9.
8.7
7.9
8.1
6.35
5.9
4.4
4.2
3
2.2
2.3
1.6
0.6
446
479
500
526
549 568
602
637
Quantity
Some research by the local university shows that eating pizza improves
health in several ways. The local government decides to subsidize pizza
consumption by paying $2 of every pizza sold(essentially a negative tax
of $2). How much will the government spend with the subsidy?
Price
Draw a correctly labeled graph showing the demand for apples. On your graph, illustrate what happens to the
demand for apples if a new report from the Surgeon General finds that an apple a day really does keep the doctor
away.
Economists in Champaign have been studying the local market for pizza. The market is described in the graph below:
Some research by the local university shows that eating pizza improves health in several ways. The local government decides to subsidize pizza consumption paying for $2 of every pizza sold(essentially a negative tax of $2). How many pizzas will be sold in the market?
Chapter 4 Solutions
Macroeconomics (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 - What is economic efficiency? Why do economists...Ch. 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 - Prob. 4.4.4RQCh. 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
- How would each of following changes affect the demand curve for acupuncture? a. The price of an acupuncture session increases b. A reduction in back problems occurs as a result of sessions about strethching on a popular television show. c. Medicare reduces the copayment for acupuncture from $20 to $10 d. The surgeon general issues a warning that back surgery is ineffetive e. Medicare stops covering back surgery.arrow_forwardHurricane Sandy to Raise Prices on Used Cars The immediate impact of Hurricane Sandy was devastating, and the storm's ripple effects will continue to be felt in the weeks and months ahead as communities work to recover. One side effect becoming apparent is Sandy's influence on the used car market. According to the Detroit Free Press, the destruction of some 250,000 vehicles has led to a shortage that could affect late-model used vehicle prices nationwide. The National Auto Dealers Association estimates that prices could increase 0.5% to 1.5%. That may not seem like much (550-S175 per vehicle), but Edmunds.com suggests that in the short term, prices could jump $700 to $1.000. Source: George Kennedy, Autoblog, November 10, 2012. © 2012 AOL Inc. All rights reserved. Market for Used Cars Post-hurricane Supply 23000 Pre-hurricane Supply 22000 21000 20000 Market Demand 19000 18000 6000 7000 8000 9000 10000 11000 Quantity (cars per day) Based on the News Wire, a. What is the initial…arrow_forwardRead this article, paying particular attention to the first 3 paragraphs. The following excerpt describes some of the changes that have occurred in the used car market. The market is the Used Car Market. “With production of many new-vehicle lines being slowed or halted by the current microchip shortage, a lack of supply has sent more U.S. consumers (even rental companies) to the used-car market. In turn, the upsurge in demand along with a short supply of product to sell (fewer new models sold means fewer trade-ins winding up on used-vehicle lots) has caused prices to skyrocket literally across the board.” First, “With production of many new-vehicle lines being slowed or halted by the current microchip shortage, a lack of supply has sent more U.S. consumers (even rental companies) to the used-car market.” Is this a demand or supply issue for used cars? (please answer) Will this increase or decrease it? (please answer) Please draw a graph (below) to show the change and the effects on…arrow_forward
- Consider how health insurance affects the quantity of healthcare services performed. Suppose that the typical medical procedure has a cost of $100, yet a person with health insurance pays only $20 out of pocket. Her insurance company pays the remaining $80. (The insurance company recoups the $80 through premiums, but the premium a person pays does not depend on how many procedures that person chooses to undertake.) Draw the demand curve in the market for medical care. (In your diagram, the horizontal axis should represent the number of medical procedures.) Show the quantity of procedures demanded if each procedure has a price of $100. On your diagram, show the quantity of procedures demanded if consumers pay only $20 per procedure. If the cost of each procedure to society is truly $100, and if individuals have health insurance as described above, will the number of procedures performed maximize total surplus? Explain.arrow_forwardConsider how health insurance affects the quantity of healthcare services performed. Suppose that the typical medical procedure has a cost of $100, yet a person with health insurance pays only $20 out of pocket. Her insurance company pays the remaining $80. (The insurance company recoups the $80 through premiums, but the premium a person pays does not depend on how many procedures that person chooses to undertake.)a. Draw the demand curve in the market for medical care. (In your diagram, the horizontal axis should represent the number of medical procedures.) Show the quantity of procedures demanded if each procedure has a price of $100.b. On your diagram, show the quantity of procedures demanded if consumers pay only $20 per procedure. If the cost of each procedure to society is truly $100, and if individuals have health insurance as described above, will the number of procedures performed maximize total surplus? Explain.c. Economists often blame the health insurance system for…arrow_forwardDraw a graph showing price is high when there is an excess in demand for masks due to the coronavirus in the USA.arrow_forward
- A short piece from The Economist noted that “A doctor of general medicine in New York typically earns 64% less than a peer in Alabama.” This is despite the fact that there is a significantly higher demand for general medicine in New York compared to Alabama. Use a market supply and demand for general medicine practitioners in both New York and Alabama to depict this situation, and briefly explain why this is the case.arrow_forwardSuppose the government decides that public health requires that people can get cheap condoms. Congress passes a law saying that condoms cannot be priced higher than $0.20 each. a. Show (with supply/demand) and explain how this law will affect the market for condoms. Show (with supply/demand) and explain how this will affect rates of sexually transmitted infections, teen pregnancy, or abortion (you pick whichever one you want).arrow_forwardExplain, with the aid of a graph, how a negative research finding about the impact of homemade masks on peoples’ health will affect the demand for homemade masksarrow_forward
- The U.S. Department of Agriculture guarantees dairy producers that they will receive at least $1.00 per pound for butter they supply to the market. Below is the current monthly demand and supply schedules for wholesale butter (in millions of pounds per month). Market for Wholesale Butter Price (dollars per pound) $0.80 0.90 1.00 1.10 1.20 1.30 1.40 1.50 1.60 1.70 1.80 Quantity of Quantity of Butter Butter Demanded Supplied (nillions of (millions of pounds) 109 106 103 100 97 94 91 88 85 82 B 79 pounds) 65 73 81 89 97 105 22 million pounds 79 million pounds 113 121 129 137 145 Instructions: Round your answer for price to two decimal places. Enter your answers for quantity as a whole number. a. What are the equilibrium price and quantity in the wholesale butter market? P = $ Q= million pounds b. What is the monthly surplus created in the wholesale butter market due to the price support (price floor) program? zero Help Save &arrow_forwardConsider how health insurance affects the quantity of healthcare services performed. suppose that the typical medical procedure has a cost of $100, yet a person with health insurances pays on $20 out of pocket. Her insurance company pays the remaining $80( the Insurance company recoups the $80 through premiums, but the premium a person pays does not depend on how many procedures that person chooses to undertake) a. Draw the demand cure in the market for medical care( In your diagram, the horizontal axis should represent the number of medical procedures) show the quantity procedures demanded if each procedure has a price of $100 b.On your diagram, show the quantity of procedures demanded if consumers pay only $20 per procedures. If the cost of each procedure to society is truly $100 and if individuals ahve health insurance as described above will the number of prcedures performed maximize total surplus? Explain c. Economists ofen blame the health insurance system for excessive use of…arrow_forwardplease plot a graph showing the effect of a government subsidy on the market for surgical masks.arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
Economics (MindTap Course List)EconomicsISBN:9781337617383Author:Roger A. ArnoldPublisher:Cengage Learning
Economics (MindTap Course List)
Economics
ISBN:9781337617383
Author:Roger A. Arnold
Publisher:Cengage Learning