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Predict how this change has affected the equilibrium price and quantity in market for beef, market for chicken, and the market for roadside hamburger stands.
How this will affect the equilibrium price and quantity in market for sugar and the market for honey. Draw supply and demand diagrams to illustrate your answer.
Explain why, if the price of the good is below the equilibrium price, the market will tend to adjust toward equilibrium.
Why does an individual's demand curve normally slope down? Why does a market demand curve normally slope down?
Bob likes to divide his recreational time between going to movies and listening to compact discs. Draw his budget constraint line. What is his opportunity set?
Why is the opportunity cost of going to medical school likely to be greater than the opportunity cost of going to college?
Why are short-run average cost curves frequently U-shaped? What is relationship between average and marginal costs? What does the total cost curve look like?
What are the relationships between these costs? What are short-run and long-run costs? What is the relationship between them?
What is meant by these various concepts of cost: total, average, average variable, marginal, and fixed? What are the relationships between these costs?
What is a production function? When there is a single (variable) input, why does output normally increase less than in proportion to input?
By what percentage more will the tax paid by the $40,000 earner be greater than that paid by the $20,000 earner? Why might some people think this unfair?
If a tax equal to 10 percent of the value of the wine is imposed, who pays more in taxes? Who pays the greater amount as a percentage of income?
Now ind two points on the new budget line such that the new preferred choice of the consumer must fall between these points.
What is the substitution effect? Why do the substitution and income effects normally reinforce each other? Is this true for an inferior good?
If the price of a normal good increases, how will the income effect cause the quantity demanded of that good to change?
How can the budget constraint appear the same even for individuals whose tastes and preferences differ dramatically?
How is the slope of the budget constraint related to the relative prices of the goods on the horizontal and vertical axes?
Predict what effect each of these proposals would have on the price and quantity of rental housing in the short run and the long run.
What is the effect of an advertising program that succeeds in discouraging people from drinking? Draw diagrams to illustrate each of your answers.
What are the short- and long-run changes in quantity supplied if prices rise by 15 percent? What happens to the farmer's revenues in each of these situations?
If the price of gasoline rises 28 percent, what effect on quantity demanded will this have in the short run? in the long run?
Increase in Housing Demand in Britain versus the United States. Draw a set of supply and demand curves showing the effects on housing prices in.
Suppose the initial equilibrium price of haircuts is $12. Draw demand and supply graphs to show the short-run and long-run effects.
The price of gasoline rose to $2.50 per gallon. In each case, how does the trade-off between junk food and gasoline change?
What are the advantages of allowing people to buy and sell their coupons? What are the disadvantages?