ECON MICRO
5th Edition
ISBN: 9781337000536
Author: William A. McEachern
Publisher: Cengage Learning
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Question
Chapter 4, Problem 4.6P
To determine
Supply curve assumptions and the factors that shift the supply curve to the right.
Concept Introduction:
Supply curve shows all the possible combinations of
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11) Draw a supply and demand graph, properly label all curves and axes. Then draw the effect of a forest fire on the market for lumber. Clearly mark how quantity and price change
11. Study Questions and Problems #11
Initially, a market is in equilibrium, but then both demand and supply decrease. Suppose that the magnitude of the shift in demand is
greater than the shift in supply.
Use the graph input tool to help you answer the following question. You will not be graded on any changes you make to this graph.
PRICE
QUANTITY
Supply
Demand
As a result of the supply and demand shifts, the price will
Demand
--
Supply
, and the quantity will
(Figure: Supply Shift) What would cause the supply curve to shift from S2 to S1 as shown in the diagram?
Price $100
S2
80
60
40
20
10
20
30
40
50
Quantity
a decrease in the costs of production
an expected decrease in the future price of the good
a decrease in the opportunity costs of producing the good
an increase in the prices of inputs used in production
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- Using Exercise 16.20, sketch the effects in parts (a) and (b) on a single supply and demand diagram. What prediction would you make about how the improved information alters the equilibrium quantity and price?arrow_forward(Table: Equilibrium Price, Quantity) Refer to the table. If the supply curve for the product shifted to the right such that 20 more units of the good are supplied at every price, what is the new equilibrium price? P Qa 50 $10 30 12 45 35 14 40 40 16 35 45 18 30 50 $12 O $10 $14 $16arrow_forward(Demand Shifters) List five things that are held constantalong a market demand curve, and identify the change ineach that would shift that demand curve to the right—that is, that would increase demand.arrow_forward
- please do it quick i need it as soon as possible.(3) Sketch a supply and demand model of the housing (home ownership) market. Label the equilibrium price and equilibrium quantity. Now sketch in TWO changes on the same graph: an increase in demand; a reduction in supply.arrow_forwardQ5. What do you mean by the demand of a commodity? a) Desire for the commodity b) Need for the commodity c) Quantity demanded of that commodity d) Quantity that consumers are able and willing to buy at various prices c particular period of timearrow_forward13. Supply and Demand Consider the following events: Researchers shows that eating lobsters increases the risk of heart attack, and at the same time, there is a new regulation that limit the number of lobsters people can fish. Show the effect of these two events on the market for lobsters. Supply Demand Supply Demand Quantity of Lobsters When the demand curve and supply curve shift in the directions indicated on this graph, you can be certain about the effect on without knowing the magnitude of the shifts. Price of Lobstersarrow_forward
- The market for pizza has the following demand and supply schedules: Price (Dollars) 4 10 5 6 7 8 9 9 Quantity Demanded Quantity Supplied Į (Pizzas) 135 115 100 90 60 45 Use the blue points (circle symbol) to graph the demand for pizzas. Then use the orange points (square symbol) to graph the supply of pizza. Finally, use the black point (plus symbol) to indicate the equilibrium price and quantity in this market. (Pizzas) 15 50 75 90 100 105 ?arrow_forward3. Suppose that the market for lima beans is in equilibrium. Then, both the supply and demand curves for lima beans shift to the left. As a result, the equilibrium price. and the equilibrium quantity will (a) will fall; rise (b) cannot be determined; fall (c) will fall; fall (d) cannot be determined; risearrow_forward1.) Given the products below and the events that affect them, indicate what happens to demand and/or supply, and the equilibrium price and quantity. In each space, indicate whether the event shifts demand (D) and/or supply (S), and whether it is an increase (1) or decrease (1) in the curve. Then, indicate whether price (P) increases (1) or decreases (1), and whether quantity (Q) increases (1) or decreases (1). If the outcome is indeterminate, use "?". If nothing happens, leave the space blank. (a) (b) (c) (d) (e) Products and Events. Blue jeans. Blue jeans become more popular. Apples. The price of oranges, a substitute for apples, goes down. Economics textbooks. Textbook authors receive an increase in the amount they are paid per textbook sold. Soda. The price of sugar, an input in soda, increases. College courses. Instructors' wages increase. D S P Qarrow_forward
- (Figure: Supply Curves) The figure shows four different supply curves for four products. Which one of the supply curves MOST likely represents a crop that takes a long time to grow? Product A Product B Price Supply product A product B product C product D Quantity Price Supply Quantity Price Product C Supply Quantity Price Product D Supply Quantityarrow_forward(Figure: Shift in Supply 1) Use the figure to answer the question. Price Old supply New supply Quantity Which of the following events would lead to a shift of the supply curve from Old supply to New supply? a decrease in the size of the market a natural disaster that causes a shutdown of production O technological advance in production techniques O increased taxation of raw materials used by producersarrow_forward12. What is the difference between a change in supply and a change in quantity supplied? A (change in supply) or to the right (an increase in supply). A change in supply, therefore, is a change in the entire supply schedule or curve. ) is a shift in the entire supply curve either to the left (a decrease in In contrast, a ( change in schedule from one price-quantity combination to another. A change in product price causes the change in quantity supplied. ) is a movement along an existing supply curve or PA P (Increase, Decrease) in (Increase, Decrease) inarrow_forward
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