New Semester
Started
Get
50% OFF
Study Help!
--h --m --s
Claim Now
Question Answers
Textbooks
Find textbooks, questions and answers
Oops, something went wrong!
Change your search query and then try again
S
Books
FREE
Study Help
Expert Questions
Accounting
General Management
Mathematics
Finance
Organizational Behaviour
Law
Physics
Operating System
Management Leadership
Sociology
Programming
Marketing
Database
Computer Network
Economics
Textbooks Solutions
Accounting
Managerial Accounting
Management Leadership
Cost Accounting
Statistics
Business Law
Corporate Finance
Finance
Economics
Auditing
Tutors
Online Tutors
Find a Tutor
Hire a Tutor
Become a Tutor
AI Tutor
AI Study Planner
NEW
Sell Books
Search
Search
Sign In
Register
study help
business
economics
Principles Of Economics 2nd Edition Steven A. Greenlaw: University Of Mary Washington, David Shapiro: Pennsylvania State University - Solutions
Can you propose a policy that would induce the market to supply more rental housing units?
Agricultural price supports result in governments holding large inventories of agricultural products. Why do you think the government cannot simply give the products away to poor people?
Most government policy decisions have winners and losers. What are the effects of raising the minimum wage? It is more complex than simply producers lose and workers gain. Who are the winners and who are the losers, and what exactly do they win and lose? To what extent does the policy change
Suppose both of these events took place at the same time. Combine your analyses of the impacts of the iPod and the tariff reduction to determine the likely impact on the equilibrium price and quantity of Sony Walkmantype products. Show your answer graphically.
Use the four-step process to analyze the impact of a reduction in tariffs on imports of iPods on the equilibrium price and quantity of Sony Walkman-type products.
Use the four-step process to analyze the impact of the advent of the iPod (or other portable digital music players) on the equilibrium price and quantity of the Sony Walkman (or other portable audio cassette players).
Suppose there is soda tax to curb obesity. What should a reduction in the soda tax do to the supply of sodas and to the equilibrium price and quantity? Can you show this graphically? Hint: assume that the soda tax is collected from the sellers
We know that a change in the price of a product causes a movement along the demand curve. Suppose consumers believe that prices will be rising in the future.How will that affect demand for the product in the present? Can you show this graphically?
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.
Consider the demand for hamburgers. If the price of a substitute good (for example, hot dogs) increases and the price of a complement good (for example, hamburger buns) increases, can you tell for sure what will happen to the demand for hamburgers? Why or why not? Illustrate your answer with a
Explain why the following statement is false: “In the goods market, no seller would be willing to sell for less than the equilibrium price.”
Explain why the following statement is false: “In the goods market, no buyer would be willing to pay more than the equilibrium price.”
Review Figure 3.4. Suppose the government decided that, since gasoline is a necessity, its price should be legally capped at $1.30 per gallon. What do you anticipate would be the outcome in the gasoline market?
What is deadweight loss?
What is the relationship between total surplus and economic efficiency?
What is total surplus? How is it illustrated on a demand and supply diagram?
What is producer surplus? How is it illustrated on a demand and supply diagram?
What is consumer surplus? How is it illustrated on a demand and supply diagram?
How does a price floor set above the equilibrium level affect quantity demanded and quantity supplied?
Does a price floor attempt to make a price higher or lower?
How does a price ceiling set below the equilibrium level affect quantity demanded and quantity supplied?
Does a price ceiling attempt to make a price higher or lower?
What causes a movement along the demand curve?What causes a movement along the supply curve?
How does one analyze a market where both demand and supply shift?
Name some factors that can cause a shift in the supply curve in markets for goods and services.
Name some factors that can cause a shift in the demand curve in markets for goods and services.
When analyzing a market, how do economists deal with the problem that many factors that affect the market are changing at the same time?
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 curve for milk.
What is the difference between the demand and the quantity demanded of a product, say milk? Explain in words and show the difference on a graph with a demand curve for milk.
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.
If the price is above the equilibrium level, would you predict a surplus or a shortage? If the price is below the equilibrium level, would you predict a surplus or a shortage? Why?
How can you locate the equilibrium point on a demand and supply graph?
What is the relationship between quantity demanded and quantity supplied at equilibrium? What is the relationship when there is a shortage? What is the relationship when there is a surplus?
Will supply curves have the same shape in all markets? If not, how will they differ?
Will demand curves have the same exact shape in all markets? If not, how will they differ?
What does a downward-sloping demand curve mean about how buyers in a market will react to a higher price?
What determines the level of prices in a market?
If a price floor benefits producers, why does a price floor reduce social surplus?
Does a price ceiling increase or decrease the number of transactions in a market? Why? What about a price floor?
What would be the impact of imposing a price floor below the equilibrium price?
Does a price ceiling change the equilibrium price?
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? Why exactly does a price ceiling cause a shortage?
A tariff is a tax on imported goods. Suppose the U.S. government cuts the tariff on imported flat screen televisions.Using the four-step analysis, how do you think the tariff reduction will affect the equilibrium price and quantity of flat screen TVs?
Let’s think about the market for air travel. From August 2014 to January 2015, the price of jet fuel decreased roughly 47%. Using the four-step analysis, how do you think this fuel price decrease affected the equilibrium price and quantity of air travel?
Many changes are affecting the market for oil. Predict how each of the following events will affect the equilibrium price and quantity in the market for oil. In each case, state how the event will affect the supply and demand diagram.Create a sketch of the diagram if necessary.a. Cars are becoming
In an analysis of the market for paint, an economist discovers the facts listed below. State whether each of these changes will affect supply or demand, and in what direction.a. There have recently been some important cost-saving inventions in the technology for making paint.b. Paint is lasting
Why do economists use the ceteris paribus assumption?
Review Figure 3.4. Suppose the price of gasoline is $1.60 per gallon. Is the quantity demanded higher or lower than at the equilibrium price of $1.40 per gallon? And what about the quantity supplied? Is there a shortage or a surplus in the market? If so, of how much?
What is Marie’s opportunity cost of purchasing a pie?
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?
If the price of a pie is $12, what is the maximum number of pies she could buy in a week?
If the price of a magazine is $4 each, what is the maximum number of magazines she could buy in a week?
Do economists have any particular expertise at making normative arguments? In other words, they have expertise at making positive statements (i.e., what will happen) about some economic policy, for example, but do they have special expertise to judge whether or not the policy should be undertaken?
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?
It is clear that productive inefficiency is a waste since resources are being used in a way that produces less goods and services than a nation is capable of. Why is allocative inefficiency also wasteful?
During the Second World War, Germany’s factories were decimated. It also suffered many human casualties, both soldiers and civilians. How did the war affect Germany’s production possibilities curve?
Suppose Alphonso’s town raises the price of bus tickets from $0.50 to $1 and the price of burgers rises from $2 to $4. Why is the opportunity cost of bus tickets unchanged? Suppose Alphonso’s weekly spending money increases from $10 to $20. How is his budget constraint affected from all three
What are four responses to the claim that people should not behave in the way described in this chapter?
Is the economic model of decision-making intended as a literal description of how individuals, firms, and the governments actually make decisions?
What is the difference between a positive and a normative statement?
What is productive efficiency? Allocative efficiency?
What are diminishing marginal returns?
Explain why societies cannot make a choice above their production possibilities frontier and should not make a choice below it.
Why is a production possibilities frontier typically drawn as a curve, rather than a straight line?
What does a production possibilities frontier illustrate?
What is comparative advantage?
Explain why individuals make choices that are directly on the budget constraint, rather than inside the budget constraint or outside it.
Explain why scarcity leads to tradeoffs.
Would a research study on the effects of soft drink consumption on children’s cognitive development be considered a positive or normative statement?
Would an op-ed piece in a newspaper urging the adoption of a particular economic policy be considered a positive or normative statement?
Individuals may not act in the rational, calculating way described by the economic model of decision making, measuring utility and costs at the margin, but can you make a case that they behave approximately that way?
What are the similarities between a consumer’s budget constraint and society’s production possibilities frontier, not just graphically but analytically?
Could a nation be producing in a way that is allocatively efficient, but productively inefficient?
Return to the example in Figure 2.4. Suppose there is an improvement in medical technology that enables more healthcare to be provided with the same amount of resources. How would this affect the production possibilities curve and, in particular, how would it affect the opportunity cost of
Suppose Alphonso’s town raised the price of bus tickets to $1 per trip (while the price of burgers stayed at $2 and his budget remained $10 per week.) Draw Alphonso’s new budget constraint. What happens to the opportunity cost of bus tickets?
Showing 1400 - 1500
of 1475
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
Step by Step Answers
Get 50% OFF
Claim Now
