Principles of Economics (12th Edition)
12th Edition
ISBN: 9780134078779
Author: Karl E. Case, Ray C. Fair, Sharon E. Oster
Publisher: PEARSON
expand_more
expand_more
format_list_bulleted
Question
Chapter 3, Problem 5.9P
Subpart (a):
To determine
Graph the
Subpart (b):
To determine
Calculation of quantity of pizza.
Subpart (c):
To determine
Effect of change in price of pizza on its supply.
Subpart (d):
To determine
Equation for new market demand.
Subpart (e):
To determine
Calculation of
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solutionStudents have asked these similar questions
Assume that the market can be represented by the supply and demand curves: Qs = 6P - 60 Qp = 60 - 4P
1. What is the price in equilibrium?
2. What is the quantity in equilibrium?
Consider the following two equations for the demand and supply: Supply curve: Qs = 10 + 2P Demand curve: Qd = 30 − 12P
(a) What is the value of the equilibrium price?
(b) What is the equilibrium quantity?
Suppose that clothes workers at a certain factory accept a pay cut of $3 per hour.
(a) Draw a graph to show how this would affect the market for clothes.
(b) Why does this shift occur? How does that affect the equilibrium price and quantity?
Suppose that the price of product A increases from $10 to $19. As a result, quantity demanded for product B changes from 300 to 265.
What can we say about products A and B? Explain.
What is one consumer food or service for which in the last 10 to 15 years consumers preference has actually increased, and still, the price has decreased. Based on all the supply and demand determinants, what is a possible reason that could cause the decrease in the price of the suggested good.
Chapter 3 Solutions
Principles of Economics (12th Edition)
Knowledge Booster
Similar questions
- Suppose the supply and demand for a good are given by the following equations: Qd = 50 – 2P Q = 9+3P How would you find the equilibrium price for this good? A. The number in front of the P in the demand equation represents the price of the good. B. Set the quantity demanded in the demand equation equal to zero and solve for price. C. Set the demand equation equal to the supply equation and solve for price. D. Set the quantity supplied in the supply equation equal to zero and solve for price.arrow_forwardExplain how the conditions for consumer equilibrium help to support the law of demand. Give an example with a diagram to support your answerarrow_forwardIf a good is free, when will a consumer stop wanting to buy the good? Once the total utility equals zero At the quantity where marginal utility is at its maximum Once the marginal utility equals zero When marginal utility is negative Once the marginal utility equals total utility What is used to measure a consumer's entire satisfaction or happiness of a choice? Total utility Marginal cost Marginal utility Total Revenue Total costs Which of the following best defines the term utility as it is used by economists? when a market allocates resources in a way that maximizes consumer and producer surplusarrow_forward
- Suppose the market demand for pizza is given by Qd = 300 – 20P and the market supply for pizza is given by Qs = -100 + 20P, where P = price (per pizza). a. Graph the supply and demand schedules for pizza using Php.5 through Php.!5 as the value of P. b. In equilibrium, how many pizzas would be sold and at what price? c. What would happen if suppliers set the price of pizza at Php.15? Explain the market adjustment process.arrow_forwardSuppose the market demand for pizza is given by Qd = 300 – 20P and the market supply for pizza is given by Qs = -100 + 20P, where P = price (per pizza). a. Graph the supply and demand schedules for pizza using Php.5 through Php.!5 as the value of P. b. In equilibrium, how many pizzas would be sold and at what price? c. What would happen if suppliers set the price of pizza at Php.15? Explain the market adjustment process. d. Suppose the price of hamburgers, a substitute for pizza, doubles. This leads to a doubling of the demand for pizza (at each price consumers demand twice as much as pizza before). Write the equation for the new Market demand for pizza. e. Find the new equilibrium price and quantity of pizza.arrow_forwardGive typing answer with explanation and conclusion Suppose the cost of petrol is Rs. 100 per litre. There are two consumers who wish to purchase petrol for their cars: A and B. Consumer A goes to the petrol pump and asks for 10 litres of petrol. Consumer B goes to the petrol pump and asks for petrol worth Rs. 1000. (i) Find the equilibrium quantity demanded by each consumer. (ii) Draw the demand curves for each consumer. Are the two consumers identical? What is the price elasticity of demand for each consumer?arrow_forward
- Given the market price of a good, how does a consumer decide as to how many units of that good to buy? Explainarrow_forward1. Suppose you are selling t-shirts at your own t-shirt stand. The supply and demand curves for t-shirts are given below. P= 10 + 0.2 Q P= 20 – 0.2 Q a. What is the equilibrium quantity for t-shirt Number b. What is the equilibrium price for t-shirts? Number If the process of making your t-shirts results in chemical waste that you dump in a nearby stream, creating $ 8 worth of damage to the environment per shirt, what is the socially optimal number of t-shirts for you to sell? C. Number d. Given the chemical waste in part c., what is the socially optimal p Number e. What tax policy could the government use to assure that you sell the socially optimal number of t-shirts? for Listarrow_forwardThink of a relevant example in your own life of how a change in the market (including information, preferences, technology, price of alternative goods, regulations, taxes, etc.) has shifted either the supply or demand of a good. How did this change affect the market equilibrium for that good or service? Explain. Next, find a relatively recent news article (within the past year) to support your finding (the news search feature in Google is helpful with this). If you cannot find an article specific to your example, you may find an article about another similar good or service. Summarize the article and its findings, then include the URL in your discussion post. Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.arrow_forward
- Think about a retail product that you have purchased recently (e.g. groceries, restaurant meal, cotton T-shirt, leather shoes, etc.). Explain how the Law of Demand affected your purchase. Give specific examples of how your demand for this product was impacted by the five determinants of demand (T.I.P.E.N.). What might happen to your individual demand curve if any of these determinants change? Give examples of scenarios that would cause a change in demand versus a movement along the same demand curve (change in quantity demanded) for this product. Discuss the new equilibrium price and quantity that result from these changes.arrow_forwardGood A (an inferior good) and Good B (a normal good) are viewed by consumers to be substitute products. Suppose that the price of Good B falls at the same time that consumer income increases. What is the net effect of these two events on equilibrium in the market for Good A? an increase in equilibrium quantity and an indeterminate effect on price a decrease in both the equilibrium price and quantity an indeterminate effect on quantity but an increase in price an increase in both the equilibrium price and quantityarrow_forwardA consumer buys two goods X and Y. Suppose price of Good X falls. What will be its effect on its demand? Give two reasonsarrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
- Exploring EconomicsEconomicsISBN:9781544336329Author:Robert L. SextonPublisher:SAGE Publications, Inc
- Economics (MindTap Course List)EconomicsISBN:9781337617383Author:Roger A. ArnoldPublisher:Cengage Learning
Exploring Economics
Economics
ISBN:9781544336329
Author:Robert L. Sexton
Publisher:SAGE Publications, Inc
Economics (MindTap Course List)
Economics
ISBN:9781337617383
Author:Roger A. Arnold
Publisher:Cengage Learning