Microeconomics (7th Edition)
7th Edition
ISBN: 9780134737508
Author: R. Glenn Hubbard, Anthony Patrick O'Brien
Publisher: PEARSON
expand_more
expand_more
format_list_bulleted
Question
Chapter 4.A, Problem 1RQ
To determine
The information from the intercepts of linear demand and supply
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solution
Students have asked these similar questions
Suppose the figure to the right illustrates the monthly demand for imported rugs at
a local rug gallery. Suppose the price of rugs increases from $5,500 to $6,500.
10,000
9,000-
Total revenue before the price change is S (Enter your response as an integer.)
Total revenue after the price change is $
(Enter your response as an integer.)
8,000-
7,000-
The change in total revenue is $
include a minus sign if appropriate,)
(Enter your response as an integer and
6,000-
The demand for imported rugs at this rug gallery is
V over the given
5,000-
price range.
4,000-
3,000-
Demand
2,000-
1,000-
0-
10 20 30
40 50 G0
70 80
90 100
Ouanti
Rent (dollars per month)
U U U
Price & Demand
In economic theory, we let z represent the number of items (called demand) a supplier will produce if the
price of the item is p.
For a particular item, if the price is $10 per item, then the demand is 577 items. However, if the price is
raised to $33 per item, then the demand decreases to 393 items.
Using this information, find the demand equation as a function of the price p?
r(p)
The demand for coffee is given by the following equation, where QD�� stands for the quantity demanded and P stands for price.
QD=100−4PQD= 100- 4P
The supply of coffee is given by the following equation, where QS�� stands for the quantity supplied and P stands for price.
QS=-10+2PQS= -10+ 2P
For parts a-d, consider a graph of the demand and supply curves with price on the vertical axis and quantity on the horizontal axis.
What is the slope of demand?
Slope =
At what price is quantity demanded equal to zero (this is, graphically, the vertical intercept of Demand)?
P =
What is the slope of supply?
Slope =
At what price is quantity supplied equal to zero (this is, graphically, the vertical intercept of Supply)?
P =
Chapter 4 Solutions
Microeconomics (7th Edition)
Ch. 4.A - Prob. 1RQCh. 4.A - Prob. 2RQCh. 4.A - Prob. 3RQCh. 4.A - Why would economists use the term deadweight loss...Ch. 4.A - Prob. 5PACh. 4.A - Prob. 6PACh. 4.A - Prob. 7PACh. 4.A - Prob. 8PACh. 4.A - Prob. 9PACh. 4 - Prob. 1TC
Ch. 4 - Prob. 2TCCh. 4 - Prob. 4.1.1RQCh. 4 - Prob. 4.1.2RQCh. 4 - Prob. 4.1.3RQCh. 4 - Prob. 4.1.4RQCh. 4 - Prob. 4.1.5PACh. 4 - Prob. 4.1.6PACh. 4 - Prob. 4.1.7PACh. 4 - Prob. 4.1.8PACh. 4 - Prob. 4.1.9PACh. 4 - Prob. 4.1.10PACh. 4 - Prob. 4.1.11PACh. 4 - Prob. 4.1.12PACh. 4 - Prob. 4.1.13PACh. 4 - Prob. 4.1.14PACh. 4 - Prob. 4.2.1RQCh. 4 - Prob. 4.2.2RQCh. 4 - Prob. 4.2.3PACh. 4 - Prob. 4.2.4PACh. 4 - Prob. 4.2.5PACh. 4 - Prob. 4.2.6PACh. 4 - Prob. 4.2.7PACh. 4 - Prob. 4.2.8PACh. 4 - Prob. 4.2.9PACh. 4 - Prob. 4.2.10PACh. 4 - Prob. 4.3.1RQCh. 4 - Prob. 4.3.2RQCh. 4 - Prob. 4.3.3RQCh. 4 - Prob. 4.3.4RQCh. 4 - Prob. 4.3.5PACh. 4 - Prob. 4.3.6PACh. 4 - Prob. 4.3.7PACh. 4 - Prob. 4.3.8PACh. 4 - Prob. 4.3.9PACh. 4 - Prob. 4.3.10PACh. 4 - Prob. 4.3.11PACh. 4 - Prob. 4.3.12PACh. 4 - Prob. 4.3.13PACh. 4 - Prob. 4.3.14PACh. 4 - Prob. 4.3.15PACh. 4 - Prob. 4.3.16PACh. 4 - Prob. 4.3.17PACh. 4 - Prob. 4.3.18PACh. 4 - Prob. 4.3.19PACh. 4 - Prob. 4.4.1RQCh. 4 - Prob. 4.4.2RQCh. 4 - Prob. 4.4.3RQCh. 4 - As explained in the chapter, economic efficiency...Ch. 4 - Prob. 4.4.5PACh. 4 - Prob. 4.4.6PACh. 4 - Prob. 4.4.7PACh. 4 - Prob. 4.4.8PACh. 4 - Prob. 4.4.9PACh. 4 - Prob. 4.4.10PACh. 4 - Prob. 4.2CTE
Knowledge Booster
Similar questions
- Suppose that Raphael and Susan are the only suppliers of pieces of cake in some hypothetical market. Their annual supply schedules are given by the following table: Price (Dollars per piece) 1 2 3 4 5 PRICE (Dollars per piece) On the following graph, plot Raphael's supply of pieces of cake using the green points (triangle symbol). Next, plot Susan's supply of pieces of cake using the purple points (diamond symbol). Finally, plot the market supply of pieces of cake using the orange points (square symbol). Note: Line segments will automatically connect the points. Remember to plot from left to right. 6 5 1 0 0 20 Raphael's Quantity Supplied (Pieces) 0 20 30 35 40 40 60 80 QUANTITY (Pieces) 100 Susan's Quantity Supplied (Pieces) 20 35 45 50 55 120 Raphael's Supply Susan's Supply Market Supply (?)arrow_forwardThe demand for butter is given by 120-4pd and the supply is 2ps-30, where pd and ps are, respectively the price paid by demanders and the price received by suppliers. a: Draw the demand and supply functions. b: Find the equilibrium quantity and price, and show them on the graph. c: Suppose a drought strikes that shifts the supply functions to 2ps-60. The demand remains the same. Draw the new supply function, and find the new equilibrium price and quantity.arrow_forwardSuppose the annual demand for gasoline as motor fuel in the US can be represented by the demand curve: Qd=125 - 10*P, where Qd is the quantity measured in billions of gallons, P is the price in dollars per gallon, and the supply curve is: Qs=-100 + 40*P . A) First, solve each equation for P, so that you can represent the inverse demand and the inverse supply on a graph with P on the vertical axis B) Now, draw the supply-demand graph, with P on the vertical axis. C) What is the equilibrium quantity of gasoline, in billions of gallons per year? The equilibrium quantity is D) What is the equilibrium price of gasoline? E) What is the amount of consumer surplus (CS), in billions of dollars, at the equilibrium price? F) What is the amount of producer surplus (PS), in billions of dollars, at the equilibrium price G) What is the total surplus (TS)?arrow_forward
- The supply and demand for a computer in a store are given for two prices: for a price of $800, the demand quanity is 50 and the supply quanity 230: for a price of $50, the demand quanity is 150 and the supply quantity 150. Let a represent the quanity A. Write an equation representing the demand function B. Write an equation representing the supply function C. Find the equlibrium quantity and pricearrow_forwardAssume that the demand curve D(p) given below is the market demand for widgets: Q=D(p)=2636−22p , p > 0 Let the market supply of widgets be given by: Q=S(p)=−4+8p , p > 0 where p is the price and Q is the quantity. The functions D(p) and S(p) give the number of widgets demanded and supplied at a given price. What is the equilibrium price? Please round your answer to the nearest hundredth. What is the equilibrium quantity? Please round your answer to the nearest integer. What is the price elasticity of demand (include negative sign if negative)? Please round your answer to the nearest hundredth. What is the price elasticity of supply? Please round your answer to the nearest hundredth.arrow_forwardConsider the following demand and supply functions: Qd= 100 - 5P and Qs = 4 + 3P. Graph the supply and demand functions in the typical manner with price (P) on the Y-axis and quantity on the X-axis, showing their intercepts. Label your graphs What is the slope of each line? What is the equilibrium price and quantity?arrow_forward
- Q2. Assume that the demand curve D(p) given below is the market demand for widgets:Q=D(p)=1307−11p, p > 0 Let the market supply of widgets be given by:Q=S(p)=−4+8p, p > 0 where p is the price and Q is the quantity. The functions D(p) and S(p) give the number of widgets demanded and supplied at a given price. What is the equilibrium price? Please round your answer to the nearest hundredth.What is the equilibrium quantity? Please round your answer to the nearest integer.What is the consumer surplus at equilibrium? Please round the intercept to the nearest tenth and round your answer to the nearest integer.What is the producer surplus at equilibrium? Please round the intercept to the nearest tenth and round your answer to the nearest integer.What is the unmet demand at equilibrium? Please round your answer to the nearest integer.arrow_forwardGiven the following inverse demand and supply functions: Supply: p = 40 + 1Q Demand: p = 77−3Q Solve for the equilibrium quantityarrow_forwardFind the equilibrium point of the demand and supply equations. Demand is p = 370 0.0003x Supply is p = 136 +0.0006x (x, p) =?arrow_forward
- Consider the following demand function for airline tickets (quantities are in thousands): Q = 10-0.1p, + 0.4py + 0.25p, + 0.005Y, where P, = price of an airline ticket Py = price of a bus ticket Q = quantity demanded P, = price of gasoline Y = consumer income %3D According to the above equation, airline tickets and bus tickets are V goods. If, in equilibrium, the cross-price elasticity between airline tickets and gasoline is 1.1; when the price of the gasoline increases by 4%, the quantity demanded of airline tickets increases by % (enter your response rounded to two decimal places). Reaction O stv MacBook Air 80 DII DD F1 F2 F3 F4 F5 F6 F7 F8 F9 F10 F11 ! @ #3 $ 一 2 3 4. 6 7 Q W E Y U { A F G J K L Z C V B- M く > Fion command command option * 00 エ Rarrow_forwardQ3. Assume that the demand curve D(p) given below is the market demand for widgets:Q=D(p)=2372−19p, p > 0 Let the market supply of widgets be given by:Q=S(p)=−3+6p, p > 0 where p is the price and Q is the quantity. The functions D(p) and S(p) give the number of widgets demanded and supplied at a given price.What is the equilibrium price? Please round your answer to the nearest hundredth.What is the equilibrium quantity? Please round your answer to the nearest integer.What is the price elasticity of demand (include negative sign if negative)? Please round your answer to the nearest hundredth.What is the price elasticity of supply? Please round your answer to the nearest hundredtharrow_forwardDuring the week before Memorial Day, a supermarket chain begins running a new set of sales. The prices of grilling products such as charcoal briquettes and lighter fluid are significantly discounted. Condiments such as mustard, ketchup, and relish have been put on sale as well. Which shift in the supply and demand curve represents how the Memorial Day sale will most likely affect the market for hot dogs? Supply shifts Right Demand shifts Left Demand shifts Right ()Supply shifts Leftarrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
Economics (MindTap Course List)EconomicsISBN:9781337617383Author:Roger A. ArnoldPublisher:Cengage Learning
Economics (MindTap Course List)
Economics
ISBN:9781337617383
Author:Roger A. Arnold
Publisher:Cengage Learning