Microeconomics
2nd Edition
ISBN: 9781259813337
Author: KARLAN, Dean S., Morduch, Jonathan
Publisher: Mcgraw-hill Education,
expand_more
expand_more
format_list_bulleted
Question
Chapter 3, Problem 1RQ
To determine
To find: a competitive market and explain all of its features.
Expert Solution & Answer
Explanation of Solution
The market for wheat is a competitive market because it has all the characteristics of a competitive market.
The buyer and seller of wheat have complete information about the prices and quality of wheat. The wheat sold by each seller is standardized and has the same features.
Buying wheat does not include any transaction cost. Moreover, neither the buyer nor the seller can influence the market
Want to see more full solutions like this?
Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!
Students have asked these similar questions
Explain why the price in competitive markets settles down at the equilibrium intersection of supply and demand. Explain what happens if the market price starts out too high or too low.
Given a market equilibrium point, explain, using
the concepts of demand and supply, how it is
achieved.
Explain the Market Equilibrium.
Chapter 3 Solutions
Microeconomics
Ch. 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. 10RQ
Ch. 3 - Prob. 11RQCh. 3 - Prob. 12RQCh. 3 - Prob. 13RQCh. 3 - Prob. 14RQCh. 3 - Prob. 15RQCh. 3 - Prob. 1PACh. 3 - Prob. 2PACh. 3 - Prob. 3PACh. 3 - Prob. 4PACh. 3 - Prob. 5PACh. 3 - Prob. 6PACh. 3 - Prob. 7PACh. 3 - The demand curve in Figure 3P-1 shows the...Ch. 3 - Prob. 9PACh. 3 - Prob. 10PACh. 3 - Prob. 11PACh. 3 - Prob. 12PACh. 3 - Prob. 13PACh. 3 - Prob. 14PACh. 3 - Prob. 15PACh. 3 - Prob. 16PACh. 3 - Prob. 17PACh. 3 - Prob. 18PA
Knowledge Booster
Similar questions
- This is a picture of a farmer's market. A farmer's market is a place where farmers bring their fresh produce to sell to consumers at low prices. Based on the information provided to you, name at least two scarce resources that were probably used to produce the fruits and vegetables shown in the picture. What would happen if one of those resources were no longer available? Choose which resource you want to pretend is no longer available, then provide an example as to how the business would be affected.arrow_forwardSelect and name a market of any well-known product , draw its market diagram, state and name four different factors that might cause changes in equilibrium price and quantity.arrow_forwardWhat are these mismatched trends telling us about how demand and supply work in the market?arrow_forward
- Carefully explain what is happening in the following market. Indicate the impact if any on demand, supply, price and quantity.arrow_forwardQuestion 4 Which of the following is NOT a characteristic of a competitive market? Multiple Choice At least one of the producers has significant market power. Externalities do not exist in the market. There is free entry into the market. There are many buyers in the market.arrow_forwardwhen the price of a product decreases what happens to supply and demand. Show in a graph.arrow_forward
- What is a market? What are the characteristics of a competitive market?arrow_forwardA Market is most efficient whenarrow_forwardYou're shopping online, and you place an item in your virtual cart. Two days later, you return to the virtual cart to check out and find that the item is now more expensive. Assuming that the market is competitive, what could explain the price increase?arrow_forward
- Draw 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_forwardYou run a produce stall at a farmer's market, but rather than sell your own goods, you travel to other farmer's markets, seeking fruits and vegetables you can buy to sell at your stall at the going rates in your market, making a profit in the process. One day, you find the prices to be as follows: Your market Market A Market B Carrots $1.00 per pound $1.25 per pound $0.90 per pound Turnips $1.50 per pound $1.80 per pound $1.60 per pound Oranges $4.00 per pound $3.25 per pound $3.75 per pound You will buy: carrots in market A and market B and turnips in market B. turnips in market B and oranges in market A and market B. turnips in market A and oranges in market B. carrots in market B and oranges in market A and market B.arrow_forwardStarting a gluten free and nut free restaurant has been a lifelong dream of Sydney Quintero, since he realized his dietary restrictions as a teenager. Now, that Sydney has graduated with his business degree, he is pursuing his dream. He has researched geographic locations around his state and selected three different cities, Fort Alden, Central City and Roseville, as possibilities for his flagship restaurant. The market for gluten/nut free products often changes due to health awareness, current trends and general demographic changes in population. Sydney’s marketing research has given him some estimates for the different locations as described in the decision table below.Decision Table State of Nature Alternatives Strong Market Fair Market Poor Market Fort Alden 75,00075,000 49,50049,500 35,00035,000 Central City 70,00070,000 54,00054,000 29,00029,000 Roseville 115,000115,000 80,00080,000 40,00040,000 Step 2 of 2 : What would Sydney’s anticipated payoff be…arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
- Economics Today and Tomorrow, Student EditionEconomicsISBN:9780078747663Author:McGraw-HillPublisher:Glencoe/McGraw-Hill School Pub Co
Economics Today and Tomorrow, Student Edition
Economics
ISBN:9780078747663
Author:McGraw-Hill
Publisher:Glencoe/McGraw-Hill School Pub Co