Microeconomics (9th Edition) (Pearson Series in Economics)
9th Edition
ISBN: 9780134184241
Author: Robert Pindyck, Daniel Rubinfeld
Publisher: PEARSON
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Chapter 1, Problem 1E
(a)
To determine
Identify if the statement is true or false.
(b)
To determine
Identify if the statement is true or false.
(c)
To determine
Identify if the statement is true or false.
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Demand and supply often shift in the retail market for gasoline. Here are two demand curves and two supply curves for gallons of gasoline in the month of May in a small town in Maine. Some of the data are missing.
Using the table, answer the following questions:
Quantities Demanded Quantities Supplied
Price
D1
D2
S1
S2
$ 4.00
5,000
7,500
9,000
9,500
6,000
8,000
8,000
9,000
2.00
8,500
8,500
9,000
5,000
Instructions: Enter your answers as whole numbers.
A) use the following facts to fill in the missing data in the table. If demand is D1 and supply is S1, the equilibrium quantity is 7,000 gallons per month. When demand is D2 and suppy is S1, the equilibrium price is $ 3.00 per galllon. When demand is D2 and supply is S1, there is an excess demand of 4,000 gallons per month at a price of $ 1.00 per gallon. If demand is D1 and supply is S2, the equilibrium quantity is 8,000 gallons per month.
B) Compare the two…
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.
Demand and supply often shift in the retail market for gasoline. Here are two demand curves and two supply curves for gallons of gasoline in the month of May in a small town in Maine. Some of the data are missing.Using the table, answer the following questions:
Quantities Demanded Quantities Supplied
Price
D1
D2
S1
S2
$7.00
5,000
7,500
9,000
9,500
6,000
8,000
8,000
9,000
5.00
8,500
8,500
9,000
5,000
Use the following facts to fill in the missing data in the table. If demand is D1 and supply is S1, the equilibrium quantity is 7,000 gallons per month. When demand is D2 and supply is S1, the equilibrium price is $6.00 per gallon. When demand is D2 and supply is S1, there is an excess demand of 4,000 gallons per month at a price of $4.00 per gallon. If demand is D1 and supply is S2, the equilibrium quantity is 8,000 gallons per month.
b. Compare the two equilibriums: In the first,…
Chapter 1 Solutions
Microeconomics (9th Edition) (Pearson Series in Economics)
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