Macroeconomics
11th Edition
ISBN: 9781260506891
Author: Colander
Publisher: MCG
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Question
Chapter 5.A, Problem 9QE
(a)
To determine
Impact of price of $3.
(b)
To determine
Impact of price of $1.50.
(c)
To determine
Impact of price of $2.25.
(d)
To determine
Impact of price of $2.50.
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Suppose the total demand for wheat and the total supply of wheat per month in the Kansas City grain market are as shown in the accompanying table.a. What is the equilibrium price? What is the equilibrium quantity? Fill in the surplus-shortage column and use it to explain why your answers are correct.b. Graph the demand for wheat and the supply of wheat. Be sure to label the axes of your graph correctly. Label equilibrium price P and equilibrium quantity Q. c. Why will $3.40 not be the equilibrium price in this market? Why not $4.90? “Surpluses drive prices up; shortages drive them down.” Do you agree?
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Chapter 5 Solutions
Macroeconomics
Ch. 5.1 - Prob. 1QCh. 5.1 - Prob. 2QCh. 5.1 - Prob. 3QCh. 5.1 - Prob. 4QCh. 5.1 - Prob. 5QCh. 5.1 - Prob. 6QCh. 5.1 - Prob. 7QCh. 5.1 - Prob. 8QCh. 5.1 - Prob. 9QCh. 5.1 - Prob. 10Q
Ch. 5.A - Prob. 1QECh. 5.A - Prob. 2QECh. 5.A - Prob. 3QECh. 5.A - Prob. 4QECh. 5.A - Prob. 5QECh. 5.A - Prob. 6QECh. 5.A - Prob. 7QECh. 5.A - Prob. 8QECh. 5.A - Prob. 9QECh. 5 - Prob. 1QECh. 5 - Prob. 2QECh. 5 - Prob. 3QECh. 5 - Prob. 4QECh. 5 - Prob. 5QECh. 5 - Prob. 6QECh. 5 - Prob. 7QECh. 5 - Prob. 8QECh. 5 - Prob. 9QECh. 5 - Prob. 10QECh. 5 - Prob. 11QECh. 5 - Prob. 12QECh. 5 - Prob. 13QECh. 5 - Prob. 14QECh. 5 - Prob. 15QECh. 5 - Prob. 16QECh. 5 - Prob. 17QECh. 5 - Prob. 1QAPCh. 5 - Prob. 2QAPCh. 5 - Prob. 3QAPCh. 5 - Prob. 4QAPCh. 5 - Prob. 5QAPCh. 5 - Prob. 1IPCh. 5 - Prob. 2IPCh. 5 - Prob. 3IPCh. 5 - Prob. 4IPCh. 5 - Prob. 5IPCh. 5 - Prob. 6IPCh. 5 - Prob. 7IPCh. 5 - Prob. 8IPCh. 5 - Prob. 9IPCh. 5 - Prob. 10IPCh. 5 - Prob. 11IPCh. 5 - Prob. 12IPCh. 5 - Prob. 13IPCh. 5 - Prob. 14IP
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Similar questions
- What is the equilibrium price? At what price is there neither a shortage nor a surplus? Fill in the surplus-shortage column and use it to confirm your answers. Graph the demand for wheat and the supply for wheat. Be sure to label the axes of your graph correctly. Label equilibrium price P and equilibrium quantity Q. How big is the surplus or shortage at $3.40? At 4.90? How big a surplus or shortage results if the price is 60 cents lower than the equilibrium price? Thousands Thousands Surplus (+) of Bushels Price per of Bushels or demanded Bushel Supplied Shortage (-) 85 $3.40 72 ___________ 80 3.70 73 ___________ 75 4.00 75…arrow_forwardRefer to the following expanded table . a. What is the equilibrium price? At what price is there neither a shortage nor a surplus? Fill in the surplus-shortage column and use it to confirm your answers. b. Graph the demand for wheat and the supply of wheat. Be sure to label the axes of your graph correctly. Label equilibrium price P and equilibrium quantity Q. c. How big is the surplus or shortage at $3.40? At $4.90? How big a surplus or shortage results if the price is 60 cents higher than the equilibrium price? 30 cents lower than the equilibrium price?arrow_forwardSurplus vs Shortage. Use the figure below to answer Questions 7 & 8. The figure below shows the Market for watermelons. Suppose sellers try to sell watermelons for $3/ pound. Market for Watermelons Price (5) 10 8 6 4 3 2 So Do 10 0 20 30 40 50 60 70 80 90 100 Quantity (thousands) At $3, the quantity demanded (QD) is At $3, the quantity supplied (Qs) isarrow_forward
- a. If a producer tries to sell oranges at a price of $0.50 per pound, what will be the quantity demanded and quantity supplied at this price? b. Determine whether there is a surplus or a shortage at a price of $0.50 per pound, and determine the size of the surplus or shortage. At this price, there will be aarrow_forwardPRICE $4 Supply Demand 0 10 QUANTITY (units) In the market shown in the graph above, at a price of $5, there will be (A) a surplus and the price will eventually fall D B a surplus generating a decrease in demand a shortage and the price will eventually rise a shortage generating an increase in supply ய E an increase in supply and a decrease in demandarrow_forwardUse Exhibit 1. Which of the following statements is (are) correct? A. A decrease in demand would cause a surplus at the original price and the equilibrium price would fall below $18.B. A decrease in supply would cause a shortage and the quantity sold would decrease such that the equilibrium quantity is less than 600 units.C. If the actual price was $18, then the market would be at its equilibrium price.D. All of the above are correctE. A and B, onlyarrow_forward
- Assume that we are looking at the market for snowblowers in December. The initial equilibrium is at a price of $500 and quantities of 1,000. Assume that December begins with three massive blizzards, how might this impact the snowblower market? Demand will shift to the right, causing a surplus, which causes prices to increase until we end up with higher prices and a greater quantity. Demand will shift to the right, causing a shortage, which causes prices to increase until we end up with higher prices and a lessor quantity. Demand will shift to the right, causing a shortage, which causes prices to increase until we end up with higher prices and a greater quantity. Demand will shift to the right, causing a shortage, which causes prices to decrease until we end up with higher prices and a greater quantity.arrow_forwardAssume that demand for a commodity is represented by the equation P = 20 0.4Qd and supply by the equation P = 8 + 0.1Qs, where Qd and Qs are quantity demanded and quantity supplied, respectively, and P is price. a. Calculate the equilibrium of price and equilibrium of quantity in the market.arrow_forward
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