Microeconomics
11th Edition
ISBN: 9781260507140
Author: David C. Colander
Publisher: McGraw Hill Education
expand_more
expand_more
format_list_bulleted
Question
Chapter 4.1, Problem 4Q
To determine
Derivation of market
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solution
Students have asked these similar questions
What would happen to a specific demand curve if one of the demand factors changed? Give an example
of demand, and use properly labelled graphs to show your instances.
How is the market demand curve determined?
by subtracting the individual demands curves from the supply curve
by horizontally summing the individual demand curves
by vertically summing the individual demand curves
by averaging all the individual demand curves
When there is a change in the price of a related good, demand increases or decreases depending on the relationship between the two goods.
Two economic terms describe these two relationships-substitutes and complements.
An increase in the price of Good A increases demand for Good B when the two goods are substitutes.
An increase in the price of Good A decreases demand for Good B when the two goods are complements.The graph shows the shift in the demand for good B when the price of good A increases depending on whether the two goods are substitutes or complements.
Pick from the bold choices below. pls look at the graph.
In Mexico, NAFTA had the result of lowering the price of used cars.
Consider the effect of the price of used cars on the demand for new cars in Mexico.
When the price of used cars in Mexico fell the Mexican demand for new cars
(Increase or decrease). This would cause the new car demand curve in Mexico to (Shift right or shift left). The price of new cars in Mexico would…
Chapter 4 Solutions
Microeconomics
Ch. 4.1 - Prob. 1QCh. 4.1 - Prob. 2QCh. 4.1 - Prob. 3QCh. 4.1 - Prob. 4QCh. 4.1 - Prob. 5QCh. 4.1 - Prob. 6QCh. 4.1 - Prob. 7QCh. 4.1 - Prob. 8QCh. 4.1 - Prob. 9QCh. 4.1 - Prob. 10Q
Ch. 4 - Prob. 1QECh. 4 - Prob. 2QECh. 4 - Prob. 3QECh. 4 - Prob. 4QECh. 4 - Prob. 5QECh. 4 - Prob. 6QECh. 4 - Prob. 7QECh. 4 - Prob. 8QECh. 4 - Prob. 9QECh. 4 - Prob. 10QECh. 4 - Prob. 11QECh. 4 - Prob. 12QECh. 4 - Prob. 13QECh. 4 - Prob. 14QECh. 4 - Prob. 15QECh. 4 - Prob. 16QECh. 4 - Prob. 17QECh. 4 - Prob. 18QECh. 4 - Prob. 19QECh. 4 - Prob. 20QECh. 4 - Prob. 21QECh. 4 - Prob. 22QECh. 4 - Prob. 23QECh. 4 - Prob. 24QECh. 4 - Prob. 1QAPCh. 4 - Prob. 2QAPCh. 4 - Prob. 3QAPCh. 4 - Prob. 4QAPCh. 4 - Prob. 5QAPCh. 4 - Prob. 6QAPCh. 4 - Prob. 1IPCh. 4 - Prob. 2IPCh. 4 - Prob. 3IPCh. 4 - Prob. 4IPCh. 4 - Prob. 5IP
Knowledge Booster
Similar questions
- The following graph plots the market for electric guitars in Houston, where there are always over 1,000 music stores. Suppose a new article is published claiming that Houston has abnormally high levels of pollution compared to the rest of the region. Due to air quality concerns, a significant number of families move out of the city. Show the effect of this change on the market for electric guitars 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 guitar)QUANTITY (Guitars)Demand Supply Now suppose Congress passes a new tax that decreases the income of Houston residents. If electric guitars are a normal good, this will cause the demand for electric guitars to .arrow_forwardSuppose that you, Jennifer, and Yusef constitute the market for CDs. Your demand for CDs is illustrated in the graph to the right (D₁), along with Jennifer's demand (D₂) and Yusef's demand (D3). Using the line drawing tool, construct the market demand curve for CDs. To do this, you will need to use three line segments labeled Dsegment 1 Dsegment 2, and Dsegment 3. Carefully follow the instructions above, and only draw the required objects. COLLE Price of CDs 307 284 26- 24- 22- 20-0₂ 184 16- 14- 12- 10- 84 64 44 NA 2- 0- 0 2 4 6 8 10 12 14 16 18 20 22 24 26 28 30 Quantity of CDs (0,28) Q OUarrow_forwardUse the following theories to explain the law of demand: (I) Income effect (II)Substitution effectarrow_forward
- The following graph shows the market for cereal in Philadelphia, where there are over 1,000 stores that sell cereal at any given moment. Suppose the price of breakfast bars decreases. (Assume that people regard cereal and breakfast bars as substitutes.) Show the effect of this change on the market for cereal 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.arrow_forwardSuppose the market for ice cream cones is made up of three consumers: Josh, Curt, and Tim. Complete the information in the following table to construct the market demand curve for ice cream cones. Josh Curt Tim Market PRICE QUANTITY DEMANDED (CONES PER WEEK) QUANTITY DEMANDED (CONES PER WEEK) QUANTITY DEMANDED (CONES PER WEEK) QUANTITY DEMANDED (CONES PER WEEK) $1.75 3 0 0 nothing 1.50 6 2 1 nothing 1.25 8 3 2 nothing 1.00 9 5 3 nothing 0.75 11 6 4 nothing Market Demand: Ice Cream Cones 036912151821240.000.250.500.751.001.251.501.752.00Quantity (cones per week)Price (dollars per cone) interactive grapharrow_forwardSuppose that you, Julio, and Yusef constitute the market for CDs. Your demand for CDs is illustrated in the graph to the right (D₁), along with Julio's demand (D₂) and Yusef's demand (D3). Using the line drawing tool, construct the market demand curve for CDs. To do this, you will need to use three line segments labeled Dsegment 1, Dsegment 2, and Dsegment 3- Carefully follow the instructions above, and only draw the required objects. Price of CDs 30 D3 28- 26- 24- 22- 20-92 18+ 16- 14- 12- 10-01 8- 6- 4 2- 0- 0 2 4 6 8 10 12 14 16 18 20 22 24 26 28 30 Quantity of CDsarrow_forward
- Explain the law of demand. Why does a demand curve slope downward? How is a market demand curve derived from individual demand curves?arrow_forwardOn the following graph, plot Jake's demand for shoes using the green points (triangle symbol). Next, plot Latasha's demand for shoes using the purple points (diamond symbol). Finally, plot the market demand for shoes using the blue points (circle symbol). Note: Line segments will automatically connect the points. Remember to plot from left to right. 60 50 PRICE (Dollars per pair). 8 8 10 0 0 16 32 48 64 QUANTITY (Pairs) 80 96 Jake's Demand Latasha's Demand Market Demand (?arrow_forwardThe following graph plots the market for electric guitars in Houston, where there are always over 1,000 music stores. Suppose the price of acoustic guitars decreases. (Assume that people regard electric guitars and acoustic guitars as substitutes.) Show the effect of this change on the market for electric guitars 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. PRICE (Dollars per guitar) Supply Demand Demand 1 Supplyarrow_forward
- According to a recent study, "Stricter college alcohol policies, such as raising the price of alcohol, or banning alcohol on campus, decrease the number of students who use marijuana." On the basis of this information, how would you describe alcohol and marijuana? They are both luxury goods. There is no relationship between the two goods. The two goods are substitutes in consumption. The two goods are complements in consumption.arrow_forwardHow does a supply curve differ from a demand curve and at what point do they intersect?arrow_forwardThe following graph plots the demand curve (blue line) for several consumers in the market for VR headsets in Mead, a small town located in Colorado. The Mead market price of a VR headset is given by the horizontal black line at $180. Each rectangle you can place on the following graph corresponds to a particular buyer in this market: orange (square symbols) for Jacques, green (triangle symbols) for Kyoko, purple (diamond symbols) for Musashi, tan (dash symbols) for Rina, and blue (circle symbols) for Sean. Use the rectangles to shade the areas representing consumer surplus for each person who is willing and able to purchase a VR headset at a market price of $180. (Note: If a person will not purchase a VR headset at the market price, indicate this by leaving his or her rectangle in its original position on the palette.) PRICE (Dollars per VR headset) 480 420 360 300 240 180 120 60 0 0 1 Jacques 2 Kyoko Musashi Rina Sean 3 4 5 QUANTITY (VR headsets) Market Price 6 7 8 Based on the…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
Microeconomics: Principles & PolicyEconomicsISBN:9781337794992Author:William J. Baumol, Alan S. Blinder, John L. SolowPublisher:Cengage Learning
Microeconomics: Private and Public Choice (MindTa...EconomicsISBN:9781305506893Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. MacphersonPublisher:Cengage Learning
Economics (MindTap Course List)
Economics
ISBN:9781337617383
Author:Roger A. Arnold
Publisher:Cengage Learning
Microeconomics: Principles & Policy
Economics
ISBN:9781337794992
Author:William J. Baumol, Alan S. Blinder, John L. Solow
Publisher:Cengage Learning
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