Exploring Microeconomics
8th Edition
ISBN: 9781544339443
Author: Sexton, Robert L.
Publisher: Sage Publications, Inc., Corwin, Cq Press,
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Question
Chapter 1, Problem 5P
To determine
The identification of the major cause of air pollution, given the data on days of air pollution, average maximum temperature and population.
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SCENARIO 1.2: A scientist wants to understand the relationship
between automobile emissions and the level of global warming.
The scientist collects data on the volume of automobile
emissions and the levels of global warming over time. The
scientist concludes that a 1% increase in automobile emissions
causes a 0.0003% increase in average global temperatures.
From this information he concludes that the automobile
emissions are harmful to the environment and should be
reduced to stop the increase in global temperatures.
Refer to Scenario 1.2. The statement, "automobile emissions are
harmful to the environment and should be reduced to stop the
increase in global temperatures," is an example of
normative economics.
positive economics.
the fallacy of logic.
marginal economics.
SCENARIO 1.2: A scientist wants to understand the relationship between
automobile emissions and the level of global warming. The scientist collects
data on the volume of automobile emissions and the levels of global
warming over time. The scientist concludes that a 1% increase in automobile
emissions causes a 0.0003% increase in average global temperatures. From
this information he concludes that the automobile emissions are harmful to
the environment and should be reduced to stop the increase in global
temperatures.
Refer to Scenario 1.2. The statement that a 1% increase in the automobile
emissions causes a 0.0003% increase in average global temperatures is an
example of
normative economics.
marginal economics.
the fallacy of logic.
O positive economics.
Alter the desmos.com model using the following daily market demand and supply of burritos:
P = 6.37 0.025 Q
and P = 1.2 + 0.016 Q
8
7
6
5
4
3
2
1
50
100 150 200 250 30
To find the number of burritos that are supplied by firms and demanded consumers, you solve
demand equal to supply (6.37 0.025 Q = 1.2 + 0.016 Q) for Q or use your Desmos model. It
equals
burritos.
To find the market-clearing price, substitute his value into demand or supply or use your Desmos
model. It is
dollars per burrito.
Regarding the first burrito supplied, the
• maximum price the first consumer is willing to pay is
• minimum price firms are willing to accept is
• price that is paid for it is
dollars
• first consumer surplus is
dollars
dollars
dollars
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