Start Discovering Solved Questions and Your Course Assignments
TextBooks Included
Active Tutors
Asked Questions
Answered Questions
With the enactment of this price floor for natural gas, what are some of the likely unintended consequences in the market?
How do you suppose the demographics of an aging population of Baby Boomers in the United States will affect the demand for milk? Justify your answer.
What are four responses to the claim that people should not behave in the way described in this chapter?
Why is the opportunity cost of bus tickets unchanged? Suppose Alphonso's weekly spending money increases from $10 to $20.
During the Second World War, Germany's factories were decimated. How did the war affect Germany's production possibilities curve?
It is clear that productive inefficiency is a waste since resources are being used in way that produces less good. Why is allocative inefficiency also wasteful?
What assumptions about the economy must be true for the invisible hand to work? To what extent are those assumptions valid in the real world?
Do economists have any particular expertise at making normative arguments? In other words, they have expertise at making positive statements.
If the price of a magazine is $4 each, what is the maximum number of magazines Marie could buy in a week?
Which she likes to spend on magazines and pies. If the price of a pie is $12, what is the maximum number of pies she could buy in a week?
Draw Marie's budget constraint with pies on the horizontal axis and magazines on the vertical axis. What is the slope of the budget constraint?
Marie has a weekly budget of $24, which she likes to spend on magazines and pies. What is Marie's opportunity cost of purchasing a pie?
In an analysis of the market for paint, an economist discovers facts. State whether each of these changes will affect supply or demand, and in what direction.
Many changes are affecting the market for oil. Predict how each of following events will affect equilibrium price. Create a sketch of the diagram if necessary.
Using the four-step analysis, how do you think this fuel price decrease affected the equilibrium price and quantity of air travel?
Using the four-step analysis, how do you think the tariff reduction will affect the equilibrium price and quantity of flat screen TVs?
What is the effect of a price ceiling on the quantity demanded of the product? What is the effect of a price ceiling on the quantity supplied?
What about a price floor? Assuming that people obey the price ceiling, the market price will be above equilibrium, which means that Qd will be less than Qs.
If a price floor benefits producers, why does a price floor reduce social surplus? Since lost consumer surplus is greater than additional producer surplus fall.
What does a downward-sloping demand curve mean about how buyers in a market will react to a higher price?
What is the relationship between quantity demanded and quantity supplied at equilibrium? What is the relationship when there is a shortage?
Why would you predict a surplus or a shortage? If the price is below the equilibrium level, would you predict a surplus or a shortage?
When the price is above the equilibrium, explain how market forces move the market price to equilibrium. Do the same when the price is below the equilibrium.
What is the difference between the demand and the quantity demanded of a product, say milk?
What is the difference between the supply and the quantity supplied of a product, say milk? Explain in words and show the difference on a graph with the supply