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
project management processes methodologies and economics
Economics For Today 5th Edition Irvin B. Tucker - Solutions
Suppose you own a video rental store. List some of the fixed inputs and variable inputs you would use in operating the store.
Explain why the long-run average cost curve for movie theaters rises (diseconomies of scale)beyond some number of screens.
Explain why the long-run average cost curve for movie theaters falls (economies of scale) as movie theaters add screens.
Why have multiscreen movie theaters replaced single-screen theaters?
What is the difference between the short run and the long run?
Why would an accountant say a firm is making a profit and an economist say it is losing money?
Assume that a consumer’s preference is for two goods, X and Y in Exhibit A-6. By holding the price of Y and money income constant while varying the price of X, it is possible to derivea. the demand curve for X.b. the demand curve for Y.c. the demand curve for both X and Y.d. none of the above.
T F The substitution effect is the concept that changes in consumption of a good result from changes in the relative price of a jointly consumed good.
Consider a consumer who spends all income on only two goods: bread and wine. An extra loaf of bread would give the consumer 10 extra utils, while an extra bottle of wine would give the consumer 60 extra utils. Bread costs 50 cents per loaf, and wine costs $6 per bottle. In this situation, the
If water is essential for life, while diamonds are not, then why is water cheaper than diamonds?a. Because most people would rather die with a big diamond ring than live without one.b. Because the total utility generated by diamonds is larger than the total utility generated by water.c. Because
Assume a consumer purchases a combination of goods X and Y such that MUxPx 40 units of utility per dollar and MUyPy 20 units of utility per dollar. To maximize utility, the consumers should buya. more of both X and Y.b. less of both X and Y.c. neither X nor Y.d. more of X and less of Y.e. less of X
A condition in which total utility cannot increase by spending more of a given budget on one good and spending less on another good is called ___________.
Suppose you consume three pounds of beef and five pounds of pork per month. The price of beef is$1.50 per pound, and pork is $2.00 per pound.Assuming you have studied economics and achieved consumer equilibrium, what is the ratio of the marginal utility of beef to the marginal utility of pork?
Suppose the price per gallon of water is 1 cent and the price per carat of a diamond is $10,000.Is the total utility of diamonds 10,000 times as great as the total utility received from water?
Can you imagine a situation in which water would be more expensive than diamonds?
Do white rats obey the law of demand?
When ordering Big Macs, milkshakes, pizza, and other goods, how can you obtain the highest possible satisfaction?
Under what conditions might you be willing to pay $10,000 for a gallon of water and 1 cent for a one-carat diamond?
The relationship between changes in price and quantity demanded for this segment of the demand curve isa. elastic.b. inelastic.c. perfectly elastic.d. perfectly inelastic.e. unitary elastic.
A manufacturer of Beanie Babies hires an economist to study the price elasticity of demand for this product. The economist estimates that the price elasticity of demand coefficient for a range of prices close to the selling price is greater than
T F Suppose an economist found that total revenues increased for the bus system when fares were raised.The conclusion is that the price elasticity demand for subway services over the range of fare increase is inelastic.
The cross-elasticity of demand between two goods is 2.5. These goods area. perfect complements.b. imperfect complements.c. unrelated.d. substitutes.e. inferior.
The number of CDs purchased increased by 50 percent when consumer income increased by 10 percent.Assuming other factors are held constant, CDs would be classified asa. social goods.b. normal goods.c. Giffen goods.d. inferior goods.
If the quantity of tickets to the fair sold decreases by 10 percent when the price increases by 5 percent, the price elasticity of demand over this range of the demand curve isa. price elastic.b. price inelastic.c. perfectly inelastic.d. unitary elastic.
An extreme case in which the demand curve is vertical and the elasticity coefficient equals zero is called _____________.
How might you determine whether compact discs and cassettes are in competition with each other?
What does this mean? What will be the effect on the quantity demanded for used cars if the price rises by 10 percent?
Suppose the price elasticity of demand for used cars is estimated to be
According to the above discussion, what factors influence the price elasticity of demand for cigarettes?What other factors not mentioned in the article might also influence the price elasticity of demand for cigarettes?
What would happen to the sales of Mercedes, BMWs, and Jaguars in the United States if Congress prohibited sales of luxury Japanese cars in this country?
How sensitive is the quantity of cigarettes demanded to changes in the price of cigarettes?
Can total revenue from a Steel Porcupines concert remain unchanged regardless of changes in the ticket price?
In Exhibit 11, which of the following might cause a shift from S1 to S2?a. A decrease in input pricesb. An improvement in technologyc. An increase in input pricesd. An increase in consumer income
A public good may be defined as any good or service thata. allows users to collectively consume benefits.b. must be distributed to all citizens in equal shares.c. is never produced by government.d. is described by answers (a) and (c) above. Price (dollars per unit) P P P E P E Quantity of good X
Which of the following is the best example of a public good?a. Pencilsb. Educationc. Defensed. Trucks
A good that provides external benefits to society hasa. too few resources devoted to its production.b. too many resources devoted to its production.c. the optimal resources devoted to its production.d. not provided profits to producers of the good.
Suppose the equilibrium price set by supply and demand is lower than the price ceiling set by the government. The eventual result will bea. a shortage.b. that quantity demanded is equal to quantity supplied.c. a surplus.d. a black market.
Which of the following is least likely to result from rent controls set below the equilibrium price for rental housing?a. Shortages and black markets will result.b. The existing rental housing will deteriorate.c. The supply of rental housing will increase rapidly.d. People will demand more
If the federal government wants to raise the price of cheese, it willa. take cheese from government storage and sell it.b. encourage farmers to research ways to produce more cheese.c. subsidize purchases of farm equipment.d. encourage farmers to produce less cheese.
An increase in the wage paid to grape pickers will cause thea. demand curve for grapes to shift to the right, resulting in higher prices for grapes.b. demand curve for grapes to shift to the left, resulting in lower prices for grapes.c. supply curve for grapes to shift to the left, resulting in
An increase in consumers’ incomes increases the demand for oranges. As a result of the adjustment to a new equilibrium, there is a (an)a. leftward shift of the supply curve.b. downward movement along the supply curve.c. rightward shift of the supply curve.d. upward movement along the supply curve.
Consider the market for chicken. An increase in the price of beef willa. decrease the demand for chicken, resulting in a lower price and a smaller amount of chicken purchased in the market.b. decrease the supply of chicken, resulting in a higher price and a smaller amount of chicken purchased in
Which of the following statements is true?a. An increase in demand, with no change in supply, will increase the equilibrium price and quantity.b. An increase in supply, with no change in demand, will decrease the equilibrium price and the equilibrium quantity.c. A decrease in supply, with no change
Suppose prices for new homes have risen, yet the number of new homes sold has also risen. We can conclude thata. the demand for new homes has risen.b. the law of demand has been violated.c. new firms have entered the construction industry.d. construction firms must be facing higher costs.
T F It’s difficult for a private firm to provide a public good because of free riders.
Which of the following is a property of a public good?a. A public good is free from externalities.b. Many individuals benefit simultaneously.c. A public good is not subject to free riders.d. A public good is established by law.
If the equilibrium price of good X is $5 and a price ceiling is imposed at $4, the eventual result will be a (an)a. accumulation of inventories of unsold gas.b. shortage.c. surplus.d. all of the above.
Suppose the government imposes rent control (a price ceiling) below the equilibrium price for rental housing. Which of the following will result?a. Black marketsb. The quality of existing rental housing deterioratesc. Shortagesd. All of the above
Vaccination shots provide ____________, which means sellers devote too few resources to produce this product. Two basic solutions to this type of market failure are laws to require consumption of shots and special subsidies.
Which of the following are public goods?a. Air bagsb. Pencilsc. Cycle helmetsd. Smokinge. Contact lenses
Suppose a market is in equilibrium and both demand and supply curves increase. What happens to the equilibrium price if demand increases more than supply?
Use a graph to show the impact on the price of Japanese cars sold in the United States if the United States imposes import quotas on Japanese cars. Now draw another graph to show how the change in the price of Japanese cars affects the price of Americanmade cars in the United States. Explain the
Market researchers have studied the market for milk, and their estimates for the supply of and the demand for milk per month are as follows:a. Using the above data, graph the demand for and the supply of milk. Identify the equilibrium point as E, and use dotted lines to connect E to the equilibrium
The Friedmans present a very one-sided view of the benefits of a voucher system. Other economists disagree about the potential effectiveness of vouchers. Do you support a voucher system for education? Explain your reasoning.
In recent years, school choice has been a hotly debated issue. Explain whether education is a public good. If education is not a public good, why should the government provide it?
Which proposal do you think best serves the interests of a member of Congress? Why?
Which proposal do you think best serves the interests of consumers? Why?
Which proposal do you think best serves the interests of small dairy farmers? Why?
Draw a supply and demand graph to illustrate the problem described in the case study, and prescribe your own solution.
Suppose Gizmo Inc. is willing to sell one gizmo for$10, a second gizmo for $12, a third for $14, and a fourth for $20, and the market price is $20. What is Gizmo Inc.’s producer surplus?a. $56b. $24c. $20d. $10
If Bill is willing to pay $10 for one good X, $8 for a second, and $6 for a third, and the market price is$5, then Max’s consumer surplus isa. $24.b. $18.c. $9.d. $6.
Using Exhibit A-6, and assuming the market is in equilibrium at QE, identify areas ACD, DCE, and ACE. Now explain the result of underproduction at Q in terms of areas BCG, GCF, and BCF.
Using Exhibits A-4 and A-5 above, calculate the total surplus. Now calculate the effect on consumer surplus, producer surplus, and total surplus of a fall in the equilibrium price of textbooks from $30 to$15 each. Explain the meaning of your calculations.
In Exhibit 14, if the market price of good X is initially $1.50, a movement toward equilibrium requiresa. no change, because an equilibrium already exists.b. the price to fall below $1.50 and both the quantity supplied and the quantity demanded to fall.c. the price to remain the same but the supply
In Exhibit 14, if the market price of good X is initially $.50, a movement toward equilibrium requiresa. no change, because an equilibrium already exists.b. the price to fall below $.50 and both the quantity supplied and the quantity demanded to rise.c. the price to remain the same but the supply
In Exhibit 14, if the price of good X moves from$1.00 to $2.00, the new market condition will puta. upward pressure on price.b. no pressure on price to change.c. downward pressure on price.d. no pressure on quantity to change.
In Exhibit 14, at a price of $2.00, the market for good X will experience aa. shortage of 150 units.b. surplus of 100 units.c. shortage of 100 units.d. surplus of 200 units.
Assume that the equilibrium price for a good is $10.If the market price is $5, aa. shortage will cause the price to remain at $5.b. surplus will cause the price to remain at $5.c. shortage will cause the price to rise toward $10.d. surplus will cause the price to rise toward $10.
If Qd quantity demanded and Qs quantity supplied at a given price, a shortage in the market results whena. Qs is greater than Qd.b. Qs equals Qd.c. Qd is less than or equal to Qs.d. Qd is greater than Qs.
Assuming soybeans and tobacco can be grown on the same land, an increase in the price of tobacco, other things being equal, causes a (an)a. upward movement along the supply curve for soybeans.b. downward movement along the supply curve for soybeans.c. rightward shift in the supply curve for
Suppose autoworkers receive a substantial wage increase. Other things being equal, the price of autos will rise because of a (an)a. increase in the demand for autos.b. rightward shift of the supply curve for autosc. leftward shift of the supply curve for autos.d. reduction in the demand for autos.
An improvement in technology causes a (an)a. leftward shift of the supply curve.b. upward movement along the supply curve.c. firm to supply a larger quantity at any given price.d. downward movement along the supply curve.
Yesterday seller A supplied 400 units of good X at$10 per unit. Today seller A supplies the same quantity of units at $5 per unit. Based on this evidence, seller A has experienced a (an)a. decrease in supply.b. increase in supply.c. increase in the quantity supplied.d. decrease in the quantity
An increase in consumer income, other things being equal, willa. shift the supply curve for a normal good to the right.b. cause an upward movement along the demand curve for an inferior good.c. shift the demand curve for an inferior good to the left.d. cause a downward movement along the supply
Assuming steak is a normal good, a decrease in consumer income, other things being equal, willa. cause a downward movement along the demand curve for steak.b. shift the demand curve for steak to the left.c. cause an upward movement along the demand curve for steak.d. shift the demand curve for
Assuming steak and potatoes are complements, a decrease in the price of steak willa. decrease the demand for steak.b. increase the demand for steak.c. increase the demand for potatoes.d. decrease the demand for potatoes.
Assuming coffee and tea are substitutes, a decrease in the price of coffee, other things being equal, results in a (an)a. downward movement along the demand curve for tea.b. leftward shift in the demand curve for tea.c. upward movement along the demand curve for tea.d. rightward shift in the demand
Assuming beef and pork are substitutes, a decrease in the price of pork will cause the demand curve for beef toa. shift to the left as consumers switch from beef to pork.b. shift to the right as consumers switch from beef to pork.c. remain unchanged, because beef and pork are sold in separate
Which of the following will cause a movement along the demand curve for good X?a. A change in the price of a close substituteb. A change in the price of good Xc. A change in consumer tastes and preferences for good Xd. A change in consumer income
Which of the following is the result of a decrease in the price of tea, other things being equal?a. A leftward shift in the demand curve for teab. A downward movement along the demand curve for teac. A rightward shift in the demand curve for tead. An upward movement along the demand curve for tea
The law of demand states that the quantity demanded of a good changes, other things being equal, whena. the price of the good changes.b. consumer income changes.c. the prices of other goods change.d. a change occurs in the quantities of other goods purchased.
If the demand curve for good X is downward sloping, an increase in the price will result ina. an increase in the demand for good X.b. a decrease in the demand for good X.c. no change in the quantity demanded for good X.d. a larger quantity demanded for good X.e. a smaller quantity demanded for good
T F Suppose the market price of good X is below the equilibrium price. The result is a shortage, and sellers can be expected to decrease the quantity of good X supplied.
Assume Congress passes a new tax of $2.00 per pack on cigarettes. The effect on the supply curve is a (an)a. decrease in supply.b. increase in supply.c. decrease in quantity supplied.d. increase in quantity supplied.
Assume that both oranges and peaches can be grown on the same type of land. A decrease in the price of peaches, other things being equal, will cause a (an)a. upward movement along the supply curve for oranges.b. downward movement along the supply curve for oranges.c. rightward shift of the supply
Which of the following will increase the demand for large automobiles?a. A fall in the price of small automobilesb. A rise in insurance rates for large automobilesc. A fall in the price of large automobiles.d. An increase in buyers’ incomes (assuming large automobiles to be a normal good)
The principle that there is a direct relationship between the price of a good and the quantity sellers are willing to offer for sale in a defined time period, ceteris paribus, is the _______________________.
The U.S. Postal Service is facing increased competition from firms providing overnight delivery of packages and letters. Additional competition has emerged because messages can be sent over computers and fax machines. What will be the effect of this competition on the market demand for mail
If a new breakthrough in manufacturing technology reduces the cost of producing CD players by half, what will happen to thea. supply of CD players?b. demand for CD players?c. equilibrium price and quantity of CD players?d. demand for CDs?
Explain and illustrate graphically the effect of the following situations:a. Population growth surges rapidly.b. The prices of resources used in the production of good X increase.c. The government is paying a $1-per-unit subsidy for each unit of a good produced.d. The incomes of consumers of normal
Predict the direction of change for either supply or demand in the following situations:a. Several new companies enter the home computer industry.b. Consumers suddenly decide large cars are unfashionable.c. The U.S. Surgeon General issues a report stating that tomatoes prevent colds.d. Frost
Draw graphs to illustrate the difference between a decrease in quantity supplied and a decrease in supply for condominiums. Give a possible reason for change in each graph.
Suppose oil prices rise sharply for years as a result of a war in the Persian Gulf region. What happens and why to the demand fora. Carsb. Home insulationc. Coald. Tires
Draw graphs to illustrate the difference between a decrease in the quantity demanded and a decrease in demand for Mickey Mantle baseball cards. Give a possible reason for change in each graph.
Some people will pay a higher price for brand-name goods. For example, some people buy Rolls Royces and Rolex watches to impress others. Does knowingly paying higher prices for certain items just to be a “snob” violate the law of demand?
Does the price system eliminate scarcity?
Can Congress repeal the law of supply to control oil prices?
In Exhibit 7, which of the following points on the production possibilities curve are full-employment production points?a. A, B, C, Db. A, B, C, D, Uc. E, U, Wd. B, C, D, Ue. A, B, C, U
In Exhibit 7, to move from U to B, the opportunity costa. would be 4 units of consumption goods.b. would be 2 units of capital goods.c. would be zero.d. would be 5 units of capital goods.e. cannot be estimated.
In Exhibit 7, which of the following points on the production possibilities curve are efficient production points?a. A, B, C, Ub. A, B, C, D, Uc. E, U, Wd. B, C, D, Ue. A, B, C, D
Showing 1600 - 1700
of 5106
First
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
Last
Step by Step Answers
Get 50% OFF
Claim Now
