Economics (Irwin Economics)
21st Edition
ISBN: 9781259723223
Author: Campbell R. McConnell, Stanley L. Brue, Sean Masaki Flynn Dr.
Publisher: McGraw-Hill Education
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Question
Chapter 3, Problem 5DQ
To determine
The impact on supply and price of the good.
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Next, complete the following graph, labeled Scenario 2, by shifting the supply and demand curves in the same way that you did on the Scenario 1
graph.
PRICE (Dollars per pen)
10
9
8
co
LO
5
+
3
2
1
0
0
1
Price
Quantity
2
Equilibrium Object
True
Scenario 2
3
False
Supply
4
5
6
7
QUANTITY (Millions of pens)
Demand
Scenario 1
8
9
Compare both the Scenario 1 and Scenario 2 graphs. Notice that after completing both graphs, you can now see a difference between them that
wasn't apparent before the shifts because each graph indicates different magnitudes for the supply and demand shifts in the market for pens.
10
Use the results of your answers on both the Scenario 1 and Scenario 2 graphs to complete the following table. Begin by indicating the overall change
in the equilibrium price and quantity after the shift in demand or supply for each shift-magnitude scenario. Then, in the final column, indicate the
resulting change in the equilibrium price and quantity when supply and demand shift in…
Done
4
LO
5
6
Question 3
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Question 4
Question 5
199
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D.J
ECO-205 As...) O'Neill copy
Question 4
What would happen to equilibrium price and equilibrium
quantity of khaki pants if...the price of the cloth used to
make khaki pants falls?
A
B
S
Price
Slide 5 of 6
Eq
0₁
Ea.
Q₂
D
Quantity
5
Price
Price
Eg
с
5
P₂
Eq
P₁
D₂
Q₂
Quantity
Q₁
0₂ Quantity
Describe the impact on equilibrium price and equilibrium quantity... what happened, and why?
(Type your answer here.) The equilibrium price will go down due to the price decline of cloth.
Companies have the ability to make different products at lower prices, making the equilibrium
quantity decrease because fewer khaki pants are being made.
A
Drag this circle and place
around
the letter below for your answer.
Price
t%₂
P₁
P₂
0₂
Notes
Ơ
:
Q₁
5
Quantity
Comments
:
Will the equilibrium price of orange juice increase or decrease in each of the following situations? LO7a.
A medical study reporting that orange juice reduces cancer is released at the same time that a freak storm destroys half of the orange crop in Florida.
The prices of all beverages except orange juice fall in half while unexpectedly perfect weather in Florida results in an orange crop that is 20 percent larger than normal.
Chapter 3 Solutions
Economics (Irwin Economics)
Ch. 3.6 - Prob. 1QQCh. 3.6 - Prob. 2QQCh. 3.6 - Prob. 3QQCh. 3.6 - Prob. 4QQCh. 3.A - Prob. 1ADQCh. 3.A - Prob. 2ADQCh. 3.A - Prob. 3ADQCh. 3.A - Prob. 4ADQCh. 3.A - Prob. 5ADQCh. 3.A - Prob. 6ADQ
Ch. 3.A - Prob. 7ADQCh. 3.A - Prob. 1ARQCh. 3.A - Prob. 2ARQCh. 3.A - Prob. 3ARQCh. 3.A - Prob. 4ARQCh. 3.A - Prob. 5ARQCh. 3.A - Prob. 6ARQCh. 3.A - Prob. 1APCh. 3.A - The following table shows two demand schedules for...Ch. 3.A - Prob. 3APCh. 3 - Prob. 1DQCh. 3 - Prob. 2DQCh. 3 - Prob. 3DQCh. 3 - Prob. 4DQCh. 3 - Prob. 5DQCh. 3 - Prob. 6DQCh. 3 - Prob. 7DQCh. 3 - Prob. 8DQCh. 3 - Prob. 1RQCh. 3 - Prob. 2RQCh. 3 - Prob. 3RQCh. 3 - Prob. 4RQCh. 3 - Prob. 5RQCh. 3 - Prob. 6RQCh. 3 - Prob. 7RQCh. 3 - Prob. 8RQCh. 3 - Prob. 9RQCh. 3 - Prob. 1PCh. 3 - Prob. 2PCh. 3 - Prob. 3PCh. 3 - Prob. 4PCh. 3 - Prob. 5PCh. 3 - Prob. 6PCh. 3 - Prob. 7P
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