Question 1

The inverse demand curve for eggs is P = 20 - 0.25Q. What is the price elasticity of demand at P = $4?

Accepted Answer

The answer of The inverse demand curve for eggs is...

Question 2

Suppose that the demand and supply curves for green peas are given by Q^D = 10 - 8P and Q^S = 2P, where P is price per pound and Q is measured in thousands of pounds. If the price per pound of peas is $0.50, the market _____, so the price will _____.

Accepted Answer

The answer of Suppose that the demand and supply curves...

Question 3

Suppose that the extended supply curve for children's books can be expressed as , where P_p is the price of colored paper. Using calculus, determine whether the quantity supplied of children's books increases or decreases as the price of colored paper increases.

Accepted Answer

The answer of Suppose that the extended supply curve for...

Question 4

In the market for good X, demand is Q^D = 6,000 - 0.8P and supply is Q^S = 0.4P - 300. What is the equilibrium quantity?

Accepted Answer

To find the equilibrium quantity, set Q^D equal to Q^S: 6,000 - 0.8P = 0.4P - 300. Solving for P gives P = 6,750. Substitute P back into either the demand or supply equation to find the equilibrium quantity: Q = 0.4(6,750) - 300 = 1,800.

Question 5

Suppose that we observe a decrease in the price of sunscreen and fewer people buying sunscreen. What could have caused this change?

Accepted Answer

A decrease in the price of sunscreen accompanied by fewer people buying it suggests a shift in consumer preferences or perceptions rather than a simple market supply or demand shift. Choice C, indicating a new study linking sunscreen ingredients to cancer, could lead to a decrease in demand as consumers avoid the product due to health concerns, which could also lead to a decrease in price as suppliers attempt to sell their now less desirable product.

Question 6

Suppose that the demand and supply curves for a good are given by Q^D = 1,000/P and Q^S = 10P. a. What are the equilibrium price and equilibrium quantity? b. Explain what is happening in the market at a price of $2. c. Explain what is happening in the market at a price of $20.

Accepted Answer

The answer of Suppose that the demand and supply curves...

Question 7

Suppose that the demand and supply curves for a good are given by Q^D = 1,000/P and Q^S = 10P. What is the equilibrium quantity?

Accepted Answer

To find the equilibrium quantity, set the demand and supply equations equal to each other: 1,000/P = 10P. Solving for P gives P^2 = 100, so P = 10. Substituting P = 10 into either the demand or supply equation gives the equilibrium quantity of 100.

Question 8

What happens in the gasoline market if the price of automobiles falls?

Accepted Answer

When the price of automobiles falls, more people are likely to buy cars, which in turn increases the demand for gasoline as more cars on the road mean more fuel consumption.

Question 9

(Figure: Price and Quantity of Turkeys II) If the price of turkey is $4 per pound, _____ pounds of turkey will be offered for sale; if the price of turkey is $7 per pound, _____ pounds of turkey will be offered for sale.

Accepted Answer

The answer of (Figure: Price and Quantity of Turkeys II)...

Question 10

Answer the following questions about price elasticity of demand. a. The price elasticity of demand for Major League Baseball tickets is -0.50. What happens to the quantity of tickets sold if ticket prices rise by 5%? b. The price elasticity of demand for fried chicken is -1.12. What happens to expenditures on fried chicken following a price increase? c. Suppose the demand for insulin is given by Q^D = 1,000. What is the price elasticity of demand at P = $100? d. What will happen to the price elasticity of demand if there are more substitute goods available?

Accepted Answer

The answer of Answer the following questions about price elasticity...

Question 11

The supply curve of rubber balls is given by Q = 100P - 10.
a. What happens to the quantity supplied of rubber balls if the price of rubber balls increases by $1?
b. What is the equation for the inverse supply curve?
c. Graph the supply curve of rubber balls, showing the quantity supplied at prices of $0.10 and $0.60.

Accepted Answer

The answer of The supply curve of rubber balls is...

Question 12

Suppose your company is faced with the demand curve: Q^D = 600 - 100P. The price elasticity of demand, E^D, at a price of $5 equals _____, and the price elasticity of demand, E^D, at a price of $1 equals _____.

Accepted Answer

The answer of Suppose your company is faced with the...

Question 13

The normal supply curve is Q^S = 12P - 20. What is the inverse supply curve?

Accepted Answer

The answer of The normal supply curve is Q^S =...

Question 14

Suppose that the market demand and supply curves for granola bars are represented by the following equations: Q^D = 7,000 - 120P Q^S = -50 + 20P where Q^D is the quantity demanded, Q^S is the quantity supplied, and P is the price. a. Show that the law of demand holds using calculus. b. Show that the law of supply holds using calculus.

Accepted Answer

The answer of Suppose that the market demand and supply...

Question 15

In each of the following cases, predict what will happen to the equilibrium price and quantity.
a. More sellers enter the market and consumer income decreases. The good is a normal good.
b. The price of a substitute good increases and sellers' options in other markets become less profitable.
c. A drought reduces the cotton harvest and cotton clothing falls out of favor with consumers.
d. The price of inputs in production rises and the price of a complement good falls.

Accepted Answer

The answer of In each of the following cases, predict...

Question 16

The demand and supply curves for a good are given by Q^D = 50 - 2P and Q^S = P - 1. a. Calculate the price elasticity of demand at the equilibrium price. b. Calculate the price elasticity of supply at the equilibrium price. c. What would happen to consumer expenditures on the good if firms must pay higher prices for their inputs in production?

Accepted Answer

The answer of The demand and supply curves for a...

Question 17

If the demand curve is Q_D = 10 - 2P, then the lowest price at which no consumer is willing to buy the good (i.e., the demand choke price) is:

Accepted Answer

The answer of If the demand curve is Q_D =...

Question 18

Given the information in the associated graph, determine the equation for the inverse demand.

Accepted Answer

The answer of Given the information in the associated graph,...

Question 19

Using well-labeled supply and demand curves, show how the following events will affect the market for the metal lead.
a. A large deposit of lead is found in Australia.
b. Millions of people who were recently lifted out of poverty buy new cars that use lead acid batteries.
c. The Environmental Protection Agency bans the use of lead ammunition because of environmental concerns.
d. A new production technology reduces the cost of removing lead from ore.

Accepted Answer

The answer of Using well-labeled supply and demand curves, show...

Question 20

The inverse supply equation for clay pots is P = 0.5Q^S + 1; the inverse demand equation is P = -2Q^D + 15. Quantity is in thousands of units. Which is more elastic at a price of $3.80, demand or supply? Round your answers to four decimal places.

Accepted Answer

The answer of The inverse supply equation for clay pots...

Quiz 2: Supply and Demand

The inverse demand curve for eggs is P = 20 - 0.25Q. What is the price elasticity of demand at P = $4?

Suppose that the demand and supply curves for green peas are given by Q^D = 10 - 8P and Q^S = 2P, where P is price per pound and Q is measured in thousands of pounds. If the price per pound of peas is $0.50, the market _, so the price will _.

Suppose that the extended supply curve for children's books can be expressed as , where P_p is the price of colored paper. Using calculus, determine whether the quantity supplied of children's books increases or decreases as the price of colored paper increases.

In the market for good X, demand is Q^D = 6,000 - 0.8P and supply is Q^S = 0.4P - 300. What is the equilibrium quantity?

Suppose that we observe a decrease in the price of sunscreen and fewer people buying sunscreen. What could have caused this change?

Suppose that the demand and supply curves for a good are given by Q^D = 1,000/P and Q^S = 10P. a. What are the equilibrium price and equilibrium quantity? b. Explain what is happening in the market at a price of $2. c. Explain what is happening in the market at a price of $20.

Suppose that the demand and supply curves for a good are given by Q^D = 1,000/P and Q^S = 10P. What is the equilibrium quantity?

What happens in the gasoline market if the price of automobiles falls?

(Figure: Price and Quantity of Turkeys II) If the price of turkey is $4 per pound, _ pounds of turkey will be offered for sale; if the price of turkey is $7 per pound, _ pounds of turkey will be offered for sale.

Suppose your company is faced with the demand curve: Q^D = 600 - 100P. The price elasticity of demand, E^D, at a price of $5 equals _, and the price elasticity of demand, E^D, at a price of $1 equals _.

The normal supply curve is Q^S = 12P - 20. What is the inverse supply curve?

If the demand curve is Q_D = 10 - 2P, then the lowest price at which no consumer is willing to buy the good (i.e., the demand choke price) is:

Given the information in the associated graph, determine the equation for the inverse demand.

The inverse supply equation for clay pots is P = 0.5Q^S + 1; the inverse demand equation is P = -2Q^D + 15. Quantity is in thousands of units. Which is more elastic at a price of $3.80, demand or supply? Round your answers to four decimal places.

Quiz 2: Supply and Demand

The inverse demand curve for eggs is P = 20 - 0.25Q. What is the price elasticity of demand at P = $4?

Suppose that the demand and supply curves for green peas are given by QD = 10 - 8P and QS = 2P, where P is price per pound and Q is measured in thousands of pounds. If the price per pound of peas is $0.50, the market _____, so the price will _____.

Suppose that the extended supply curve for children's books can be expressed as , where Pp is the price of colored paper. Using calculus, determine whether the quantity supplied of children's books increases or decreases as the price of colored paper increases.

In the market for good X, demand is QD = 6,000 - 0.8P and supply is QS = 0.4P - 300. What is the equilibrium quantity?

Suppose that we observe a decrease in the price of sunscreen and fewer people buying sunscreen. What could have caused this change?

Suppose that the demand and supply curves for a good are given by QD = 1,000/P and QS = 10P. a. What are the equilibrium price and equilibrium quantity? b. Explain what is happening in the market at a price of $2. c. Explain what is happening in the market at a price of $20.

Suppose that the demand and supply curves for a good are given by QD = 1,000/P and QS = 10P. What is the equilibrium quantity?

What happens in the gasoline market if the price of automobiles falls?

(Figure: Price and Quantity of Turkeys II) If the price of turkey is $4 per pound, _____ pounds of turkey will be offered for sale; if the price of turkey is $7 per pound, _____ pounds of turkey will be offered for sale.

Suppose your company is faced with the demand curve: QD = 600 - 100P. The price elasticity of demand, ED, at a price of $5 equals _____, and the price elasticity of demand, ED, at a price of $1 equals _____.

The normal supply curve is QS = 12P - 20. What is the inverse supply curve?

If the demand curve is QD = 10 - 2P, then the lowest price at which no consumer is willing to buy the good (i.e., the demand choke price) is:

Given the information in the associated graph, determine the equation for the inverse demand.

The inverse supply equation for clay pots is P = 0.5QS + 1; the inverse demand equation is P = -2QD + 15. Quantity is in thousands of units. Which is more elastic at a price of $3.80, demand or supply? Round your answers to four decimal places.

Suppose that the demand and supply curves for green peas are given by Q^D = 10 - 8P and Q^S = 2P, where P is price per pound and Q is measured in thousands of pounds. If the price per pound of peas is $0.50, the market _, so the price will _.

Suppose that the extended supply curve for children's books can be expressed as , where P_p is the price of colored paper. Using calculus, determine whether the quantity supplied of children's books increases or decreases as the price of colored paper increases.

In the market for good X, demand is Q^D = 6,000 - 0.8P and supply is Q^S = 0.4P - 300. What is the equilibrium quantity?

Suppose that the demand and supply curves for a good are given by Q^D = 1,000/P and Q^S = 10P. a. What are the equilibrium price and equilibrium quantity? b. Explain what is happening in the market at a price of $2. c. Explain what is happening in the market at a price of $20.

Suppose that the demand and supply curves for a good are given by Q^D = 1,000/P and Q^S = 10P. What is the equilibrium quantity?

(Figure: Price and Quantity of Turkeys II) If the price of turkey is $4 per pound, _ pounds of turkey will be offered for sale; if the price of turkey is $7 per pound, _ pounds of turkey will be offered for sale.

Suppose your company is faced with the demand curve: Q^D = 600 - 100P. The price elasticity of demand, E^D, at a price of $5 equals _, and the price elasticity of demand, E^D, at a price of $1 equals _.

The normal supply curve is Q^S = 12P - 20. What is the inverse supply curve?

If the demand curve is Q_D = 10 - 2P, then the lowest price at which no consumer is willing to buy the good (i.e., the demand choke price) is:

The inverse supply equation for clay pots is P = 0.5Q^S + 1; the inverse demand equation is P = -2Q^D + 15. Quantity is in thousands of units. Which is more elastic at a price of $3.80, demand or supply? Round your answers to four decimal places.