Macroeconomics
13th Edition
ISBN: 9780134735696
Author: PARKIN, Michael
Publisher: Pearson,
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Question
Chapter 5, Problem 6SPA
(a)
To determine
Identify the marginal
(b)
To determine
Identify the marginal cost for each supplier if the total number of rides is 30.
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You are asked to estimate the demand curve for Lake Mead recreational area by Las Vegas residents.
a. Show on a graph what this demand curve would look like. Make sure to label properly your
graph. Explain your graph.
b.
A new Clark County program improves the quality of Lake Mead beaches. Show on your
graph how this affects the demand curve. Explain.
Highlight the area representing the benefits of the program to Las Vegas residents. Explain.
What is a potential limitation of this approach? Explain.
c.
d.
PRICE (Yen per gram)
100
90
80
70
60
40
30
20
10
0
0
0
Demand
+
20 40 60 80 100 120 140 160 180 200
QUANTITY (grams of uff per month)
Graph Input Tool
Demand for Uff
Price of Uff
(Yen per gram)
to eat my uff this morning, but there wasn't any
Quantity
Demanded
DEMAND SHIFTERS
Average Income
-(Yen per month)
Price of Tulg
(Yen per gram)
Price of Snick
(Yen per gram)
Of
Suppose that the price of a gram of uff decreased from 50 yen to 40 yen. This would cause a
an increase in
50
100
100
20
50
Plug any value lower than the current number into the Average Income box. A decrease in average income causes a leftward
the demand curve.
the demand curve and therefore
When the prices of tulg or snick change, there is a shift of the demand curve for uff. The directions of these changes imply that snick and uff are
, and that tulg and uff are
. For example, a Hermetian might say, "I went
in my fridge. So instead of having uff for breakfast, I ate some
PRICE (Dollars per room)
500
450
400
350
300
250
200
150
Demand
Graph Input 1001
Market for Big Winner's Hotel Rooms
Price
300
(Dollars per room)
Quantity
200
Demanded
(Hotel rooms per
night)
Demand Factors
Average Income
50
(Thousands of
100
dollars)
50
Airfare from YYZ to
200
LAS
0
(Dollars per
0
50 100 150 200 250 300 350 400 450 500
roundtrip)
QUANTITY (Hotel rooms)
Room Rate at Lucky
(Dollars per night)
250
For each of the following scenarios, begin by assuming that all demand factors are set to their original values and Big Winner is charging $300 per
room per night.
If average household income increases by 20%, from $50,000 to $60,000 per year, the quantity of rooms demanded at the Big Winner
rooms per night to
rooms per night. Therefore, the income elasticity of demand is
from
, meaning that hotel rooms at the
Big Winner are
good.
If the price of an airline ticket from YYZ to LAS were to increase by 10%, from $200 to $220 roundtrip, while all other demand factors remain at…
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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