Macroeconomics
13th Edition
ISBN: 9780134735696
Author: PARKIN, Michael
Publisher: Pearson,
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Question
Chapter 5, Problem 16APA
(a)
To determine
Identify the maximum price per consumer willing to pay for the 200th sandwich.
(b)
To determine
Identify the minimum price that each producer is willing to accept for the 200th sandwich.
(c)
To determine
Identify the value of total surplus, if 200 sandwiches are available per day.
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Price ($/cup)
4
3.5
3
2.5
2
1.5
1
0.5
0
0
10 20
Original Supply
A decrease in the price of coffee beans.
New Demand
Original Demand
30 40 50 60 70 80 90
Quantity (cups/hour)
New Supply
The figure above refers to the market for coffee. What might cause a shift from the original demand
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An increase in the price of tea (a substitute for coffee).
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An expectation that coffee prices will fall in the future.
A decrease in the price of cream (a complement to coffee)
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If the price of potatoes is currently R60, then:
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b) There will be a shortage of 50.
c) There will be a surplus of 50.
100 120 150
d) The quantity demanded will decrease to 120.
Suppose that the graph represents the demand and supply of bicycles in a small town.
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Price of
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400
350
300
250
200
150
100
a. 100
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1
2
3
S
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4
6 7 8
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Chapter 5 Solutions
Macroeconomics
Ch. 5.1 - Prob. 1RQCh. 5.1 - Prob. 2RQCh. 5.1 - Prob. 3RQCh. 5.1 - Prob. 4RQCh. 5.2 - Prob. 1RQCh. 5.2 - Prob. 2RQCh. 5.2 - Prob. 3RQCh. 5.2 - Prob. 4RQCh. 5.2 - Prob. 5RQCh. 5.2 - Prob. 6RQ
Ch. 5.3 - Prob. 1RQCh. 5.3 - Prob. 2RQCh. 5.3 - Prob. 3RQCh. 5.4 - Prob. 1RQCh. 5.4 - Prob. 2RQCh. 5.4 - Prob. 3RQCh. 5.4 - Prob. 4RQCh. 5 - Prob. 1SPACh. 5 - Prob. 2SPACh. 5 - Prob. 3SPACh. 5 - Prob. 4SPACh. 5 - Prob. 5SPACh. 5 - Prob. 6SPACh. 5 - Prob. 7SPACh. 5 - Prob. 8SPACh. 5 - Prob. 9SPACh. 5 - Prob. 10SPACh. 5 - Prob. 11APACh. 5 - Prob. 12APACh. 5 - Prob. 13APACh. 5 - Prob. 14APACh. 5 - Prob. 15APACh. 5 - Prob. 16APACh. 5 - Prob. 17APACh. 5 - Prob. 18APACh. 5 - Prob. 19APACh. 5 - Prob. 20APACh. 5 - Prob. 21APACh. 5 - Prob. 22APACh. 5 - Prob. 23APACh. 5 - Prob. 24APACh. 5 - Prob. 25APACh. 5 - Prob. 26APACh. 5 - Prob. 27APA
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