Microeconomics: Principles & Policy
14th Edition
ISBN: 9781337794992
Author: William J. Baumol, Alan S. Blinder, John L. Solow
Publisher: Cengage Learning
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Question
Chapter 4, Problem 9TY
To determine
(a)
To find:
The
To determine
(b)
To Find:
The new equilibrium price and quantity after the shift of the demand curve.
To determine
(c)
To Find:
The new equilibrium price and quantity after the shift of the supply curve.
Expert Solution & Answer
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Students have asked these similar questions
Question #1: On the news there has been outrage over the price of Epipens, a medication
needed for allergic reactions to food and bee stings. The price of a two-pack of Epipens has
risen from $100 to $600. The number of Epipens purchased fell from 1000 to 400. At the
current time, there are no substitutes for this drug
Will this increase in price cause a decrease in demand or a decrease in quantity demanded?
Illustrate your answer graphically (either by showing a movement along the demand curve or
by shifting the demand curve).
The following table shows the annual demand and supply in the market for ice cream in Houston.
Price
Quantity Demanded
Quantity Supplied
(Dollars per gallon of ice cream)
(Gallons of ice cream)
(Gallons of ice cream)
4
2,000
200
8
1,600
600
12
1,200
800
16
800
1,200
20
400
1,800
On the following graph, plot the demand for ice cream using the blue point (circle symbol). Next, plot the supply of ice cream using the orange point (square symbol). Finally, use the black point (plus symbol) to indicate the equilibrium price and quantity in the market for ice cream.
The following table presents the monthly demand and supply in the market for sweatpants in Miami.
Price
Quantity Demanded
(Dollars per pair of sweatpants) (Pairs of sweatpants)
6
12
18
24
30
PRICE (Dollars per pair of sweatpants)
36
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.
(?)
30
+
18
0
0
300
1,650
1,350
1,200
900
750
600
900
1200
QUANTITY (Pairs of sweatpants)
1500
Quantity Supplied
(Pairs of sweatpants)
1800
300
600
750
1,350
1,800
Demand
O
Supply
++
Equilibrium
Chapter 4 Solutions
Microeconomics: Principles & Policy
Knowledge Booster
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