Suppose that the price of sedans in the previous graph increases from $24,000 to $29,000 per car. This would cause thesedans to increase, which is reflected on the graph by athe supply curve.Suppose a technological improvement increases the speed with which robots can attach bolts to cars from 2,500 bolts per hour to 3,000 bolts perhour. Assuming that the wage rate remains the same, this would cause athe supply curve. This is because thetechnological improvement makes cars

Price and supply have a positive relationship. While the price is an independent variable.

Answered: Suppose that the price of sedans in the…

Principles of Microeconomics

7th Edition

ISBN:9781305156050

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter21: The Theory Of Consumer Choice

Section: Chapter Questions

Problem 9PA

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2:32 PM O O ® ……. ll ll 6 69 ME ASSIGNMENT - Read-only Sign in to edit and save changes to this file. 1. Suppose that a demand function for computer is Od = 30- 15p, and a supply function for computer is C = 40+25p. Calculate the price and the quantity at equilbrium 2. Name the return to scale in each column Units of Canital Units of Labour Tatal Outnut % Change in Inputs % Change in Output Returns to Output Scale e 20 150 3000 7500 12000 100 50 33 25 40 300 150 60 450 60 B0 800 16000 33 100 750 18000 13 3. S.NO TOTAL MARGINAL | RETURNS TO PRODUCT PRODUCT SCALE 18 8 2 3 28 10 10 38 48 56 10 15 6 62 6 4 Complete the following table Marginal Average Average Average cost MC Output Fixed Variable Total cost cost AFC variabie cost AC cost cost F cost AVC 84 1 84 10 2 84 21 3 84 28 4 84 36 5 84 54 6 84 81 7 84 108 84 136 84 178 10 84 226 ...
Thu 8 Apr *© 44% AA docs.google.com Problem 4 Which of the following events will cause a leftward shift in the supply curve of automobile? * O An increase in the wage rate of workers. A decrease in the price of gasoline. O An improvement in oil refining technology. Decrease in the price of crude oil. ould cause the supply curve for gasoline to shift to the
Suppose that the profit-maximizing quantity ofoutput for a firm in the competitive textile industry is 1 million yards of cloth. If this firm is representative of others in the industry, how can youdescribe total supply in the market, with respectto the number of firms?
The following graph shows the monthly demand and supply curves in the market for combs. Use the graph input tool to help you answer the following questions. You will not be graded on any changes you make to this graph. Note: Once you enter a value in a white field, the graph and any corresponding amounts in each grey field will change accordingly. PRICE (Dollars per comb) 528 && 28 72 64 56 48 40 16 Supply Demand 0 50 100 150 200 250 300 350 400 450 500 QUANTITY (Combo) Graph Input Tool Market for Combs Price (Dollars per comb) Quantity Demanded (Combs) 24 500 Quantity Supplied (Combs)
Hi, the question is Doug William, the owner of a corner store, estimates that the supply and demand for a specialized energy drinkcould be described by the following equationsD : q = −25p + 345, S : q = 50 p − 330 ,where p represents the price in dollars per case (each case contains 12 bottles), and q represents the number of cases sold each week. I want you to help me with how to... Set the problem in Excel, and use Goal Seek to confirm your answers in parts
The following graph shows the market for cakes in San Francisco, where there are over 1,000 bakeries at any given moment. Suppose the number of bakeries increases significantly. tudy Tools Show the effect of this change on the market for cakes by shifting one or both of the curves on the following graph, holding all else constant. ns 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 curve and it snaps back ess Tips to its original position, just drag it a little farther. ess Tips (?) R YOU Supply Demand ning Supply back Demand QUANTITY (Cakes) MacBook Air PRICE (Dollars per cake)
The market demand for productXis given by: \[ Q_{d}=6-1 / 2 P \text { or } P d=12-2 Q \] The market supply for goodXis given by: \[ Q_{s}=-14+2 P \text { or } P s=7+1 / 2 Q \] whereP=price per unit andQis number of units. Draw a supply-and-demand graph with these curves. 1.) Using the line drawing tool, draw the supply and demand curves. Properly label your lines. 2.) Using the point drawing tool, plot the equilibrium point. Label your point 'E'. Note: Carefully follow the instructions above and only draw the required objects. The equilibrium price is$and the equilibrium quantity is unit(s). (Enter your responses as integers.) A per-unit excise tax is imposed on suppliers of productX, and the market supply with the tax is now given by: \[ Q_{s}=-19+2 P \text { or } P s=9.50+1 / 2 Q \] Using the graph on the right, show this supply curve. 1.) Using the line drawing tool, draw the new supply curve. Label your line 'S1+tax'.1. Note: Carefully follow the instructions above and only draw…
"There's two things driving the prices," says wool general manager for PGG Wrightson, Grant Edwards. "One, it's the sporting apparel. We've had a huge increase in merino wools going into that sporting apparel. Also we're still seeing a strong benchmark from that Italian market, the suiting market. Plus we're seeing diminishing merino numbers around the world."November 2017 How is the number of sheep impacting on the wool market?
The graph shows the market for cashews. What is the equilibrium price of cashews? What is the equilibrium quantity of cashews? Is the market for cashews efficient or inefficient? Why? CIER The equilibrium price of cashews is $ a pound and the equilibrium quantity of cashews is pounds. The market for cashews is O A. inefficient only if the cost of growing all the cashews is an average of $6.00 a pound OB. efficient because the marginal benefit of cashews equals the marginal cost of producing them, which is $6.00 a pound OC. inefficient because growers of cashews receive a large producer surplus O D. efficient because the benefit of each pound of cashews consumed equals the cost of growing it OE. efficient only if the total benefit of the cashews equals $6.00 a pound billion A 12.00- 10.00- 8.00- 6.00+ 4.00- 2.00- 0.00+ 0 Price (dollars per pound) S 3 9 12 6 Quantity (billions of pounds per year) D 15 Q Q
In 2018, a cold front in Barbados increased both the demand for water heaters andgasolines. The usage of gasoline was 581 tonnes, an increase from 499 tonnes in theprevious year. The Petroleum Company of Barbados advised Government officials thatdemand could outweigh supply and asked companies to increase the supply. They alsoasked major gasoline users, such as power plants, to reduce demand. Illustrate the effect of the cold front on the demand for gasoline using a demandcurve diagram over the two years.
Consider the market for bicycles which is initially in equilibrium. Suppose that the number of bicycle producers increases at the same time that the cost of labour decreases. Which of the following statements is true about the market for bicycles given this information O a. The equilibrium price will decrease and the equilibrium quantity will increase Ob. The equilibrium price will increase and the equilibrium quantity will decrease Oc. The equilibrium price may increase, decrease or remain the same while the equilibrium quantity will increase Od. The equilibrium quantity may increase, decrease or remain the same while the equilibrium price will decrease
Market Equilibrium A retail chain will buy 800 televisions if the price is $350 each and 1200 if the priceis $300. A wholesaler will supply 700 of these televisions at $280 each and 1400 at $385 each. Assumingthat the supply and demand functions are linear, findthe market equilibrium point and explain what itmeans.

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