Economics: Principles & Policy
14th Edition
ISBN: 9781337696326
Author: William J. Baumol; Alan S. Blinder; John L. Solow
Publisher: Cengage Learning
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Question
Chapter 4, Problem 9TY
(a)
To determine
Calculate
(b)
To determine
Calculate equilibrium price and quantity in new demand function.
(c)
To determine
Calculate equilibrium price and quantity in new supply function.
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Students have asked these similar questions
Suppose that the demand and supply of liter of petrol are given in table 1 below:
Price (RM)
Quantity demanded (liter per day)
Quantity supplied (liter per day)
0.80
8
24
0.75
10
22
0.70
12
20
0.65
14
18
0.60
16
16
0.55
18
14
Table 1
What is the equilibrium price and quantity of petrol, use a graph paper to draw a demand curve and supply curve based on the table
Suppose that the table on the right shows the quantity demanded of UGG boots at five different prices in
2014 and in 2015.
Which of the following variables could cause the quantity demanded of UGG boots to change as indicated
from 2014 to 2015? (Check all that apply.)
A. An increase in the price of UGG boots
B. A decrease in the price of a substitute good
C. A decrease in the number of buyers
D. The expectation that UGG boots will rise in price
Price
$160
170
180
190
200
Quantity
Demanded
2014
5000
4500
4000
3500
3000
Quantity
Demanded
2015
4000
3500
3000
2500
2000
The following table presents the weekly demand and supply in the market for sweatpants in Dallas.
Price
Quantity Demanded
(Dollars per pair of sweatpants) (Pairs of sweatpants)
Quantity Supplied
(Pairs of sweatpants)
6
1,650
300
12
1,350
600
18
1,200
750
24
900
1,350
30
750
1,800
On the following graph, plot the demand for sweatpants using the blue point (circle symbol). Next, plot the supply of sweatpants using the orange
point (square symbol). Finally, use the black point (plus symbol) to indicate the equilibrium price and quantity in the market for sweatpants.
Note: Plot your points in the order in which you would like them connected. Line segments will connect the points automatically.
36
30
PRICE (Dollars per pair of sweatpants)
24
18
2
0
0
300
600
900
1200
1500
1800
QUANTITY (Pairs of sweatpants)
Demand
---
Supply
+
Equilibrium
Chapter 4 Solutions
Economics: Principles & Policy
Knowledge Booster
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