Economics For Today
9th Edition
ISBN: 9781305507074
Author: Tucker, Irvin B.
Publisher: Cengage Learning,
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Question
Chapter 4, Problem 12SQ
To determine
The relation between price and supply.
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Can you propose a policy that would induce the market to supply more rental housing units?
PRICE
$4
Supply
Demand
0
10
QUANTITY (units)
In the market shown in the graph above, at a price of $5, there will be
(A)
a surplus and the price will eventually fall
D
B
a surplus generating a decrease in demand
a shortage and the price will eventually rise
a shortage generating an increase in supply
ய
E
an increase in supply and a decrease in demand
WHEN DO YOU SAY THAT THERE IS EXCESS SUPPLY FOR A COMMODITY IN THE MARKET?
Chapter 4 Solutions
Economics For Today
Ch. 4.2 - Prob. 1YTECh. 4.2 - Prob. 2YTECh. 4.2 - Prob. 3YTECh. 4.2 - Prob. 4YTECh. 4.3 - Prob. 1YTECh. 4.3 - Prob. 2YTECh. 4 - Prob. 1SQPCh. 4 - Prob. 2SQPCh. 4 - Prob. 3SQPCh. 4 - Prob. 4SQP
Ch. 4 - Prob. 5SQPCh. 4 - Prob. 6SQPCh. 4 - Prob. 7SQPCh. 4 - Prob. 8SQPCh. 4 - Prob. 9SQPCh. 4 - Prob. 10SQPCh. 4 - Prob. 1SQCh. 4 - Prob. 2SQCh. 4 - Prob. 3SQCh. 4 - Prob. 4SQCh. 4 - Prob. 5SQCh. 4 - Prob. 6SQCh. 4 - Prob. 7SQCh. 4 - Prob. 8SQCh. 4 - Prob. 9SQCh. 4 - Prob. 10SQCh. 4 - Prob. 11SQCh. 4 - Prob. 12SQCh. 4 - Prob. 13SQCh. 4 - Prob. 14SQCh. 4 - Prob. 15SQCh. 4 - Prob. 16SQCh. 4 - Prob. 17SQCh. 4 - Prob. 18SQCh. 4 - Prob. 19SQCh. 4 - Prob. 20SQ
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Similar questions
- The graph shows the supply and demand curves for a certain product, which has a current selling price of $ 500. The laws of supply and demand most support which conclusion about the product?arrow_forwardDraw the supply and demand graph in equilibrium for a single market. Identify the equilibrium price and quantity. Make sure to label the axis as well as the curves.arrow_forwardExplain how the market moves to equilibrium in terms of shortages and surpluses and in terms of maximum buying prices and minimum selling prices.arrow_forward
- Price P EQ A B Market for Product X D Quantity What would happen to the equilibrium price of Product X if demand for Product X increased? It would rise. It would fall. It would fluctuate. S It would stay the same. Darrow_forwardWhen the actual price in a market is above the equilibrium price we would expect: a. a shortage of the good or service. b. this higher price to be the new equilibrium. c. a surplus of the good or service. d. an excess demand or excess supply depending upon the extent of the difference between actual and equilibrium price.arrow_forwardThe rent for apartments in New York City has been rising sharply. Demand for apartments in New York City has been rising sharply as well. This is hard to explain because the law of demand says that higher prices should lead to lower demand. Do you agree or disagree? Explain your answer.arrow_forward
- Explain how prices behaves under different markets.arrow_forwardIf the supply decreases and the demand decreases, a. b. C. d. the equilibrium price and quantity both decreases. the equilibrium price decreases while the equilibrium quantity increases. the equilibrium quantity decreases while the effect on price is ambiguous. the equilibrium price and quantity both increases. A a B b D darrow_forwardHow would an increase in the demand for housing affect the market for construction workers? The demand for construction workers would increase, causing construction workers' wages to rise. The demand for construction workers would increase, causing construction workers' wages to fall. The demand for construction workers would decrease, causing construction workers' wages to rise. The demand for construction workers would decrease, causing construction workers' wages to fall.arrow_forward
- carefully explain what is happening in the market for tea. indicate the impact if any on demand, supply,price and quantity .coffee and tea are demand substitutes. coffee plantations increase the supply of coffee. choose the suitable answer. 1) Impact on demand a. decrease equilibrium quantity b.excess supply c. increase equilibrium quantity d. decrease towards equilibrium e.increase towards equilibrium f. change in price in uncertain g.decrease equilibrium price h.excess demand i. change in quantity uncertain j.increase equilibrium price k. no impact l.shift outwards/ to right m.shift inwards/to leftarrow_forwardCan you propose a policy that meld induce the market to supply more rental housing units?arrow_forward
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