Questionnbsp the table sets out the demand and supply

Assignment Help Microeconomics
Reference no: EM13372454

Question 

The table sets out the demand and supply schedules for chewing gum.

Price

(cents per pack)

Quantity
demanded

Quantity
supplied

 

(millions of packs a week)

20

180

60

40

140

100

60

100

140

80

60

180

100

20

220

(a) Draw a graph of the market for chewing gum. What are the equilibrium price and quantity? Mark the equilibrium price and quantity in the graph.  

(b) Suppose that the price of chewing gum is 70¢ a pack. Describe the situation in the chewing gum market (shortage or surplus and why?) and explain how the price adjusts.  

(c) Suppose that the price of chewing gum is 30¢ a pack. Describe the situation in the chewing gum market (shortage or surplus and why?) and explain how the price adjusts.  

(d) Suppose a fire destroys some factories that produce chewing gum and the quantity of gum supplied decreases by 40 million packs a week at each price. Explain what happens in the market for gum and illustrate the changes on your graph.

Reference no: EM13372454

Questions Cloud

Questionsouth korea is one of major beef importing : questionsouth korea is one of major beef importing countries. with no international trade koreas equilibrium price for
Questionnbsp coal shortage at china plants chinese power : questionnbsp coal shortage at china plants chinese power plants have run short of coal an unintended effect of
Questionnbsp part a the table shows the demand and supply : questionnbsp part a the table shows the demand and supply schedules for low-cost housing.rent per
Questionnbsp the demand schedule for computer chips is in : questionnbsp the demand schedule for computer chips is in the table.price dollars per chipquantity demanded millions
Questionnbsp the table sets out the demand and supply : questionnbsp the table sets out the demand and supply schedules for chewing gum.pricecents per packquantity
1 what factors can contribute to unemployment2 how can : 1. what factors can contribute to unemployment?2. how can technology lead to greater unemployment or is it a benefit to
Write a paper modeled as a policy recommendation in which : write a paper modeled as a policy recommendation in which youbriefly describe the economic problem you have
1international trade leads to specialization and mutual : 1.international trade leads to specialization and mutual interdependence. every country specializes in a sub-set of
Suppose that the phillips curve is given bypit piet - pit : suppose that the phillips curve is given bypit piet - pit - 5and expected inflation is given bypiet pit-1a. what is

Reviews

Write a Review

Microeconomics Questions & Answers

  Draw game tree and find backward induction equilibrium

Draw the game as a table. What are the Nash equilibria of this game? How does this game differ from a prisoner's dilemma, and how can participants achieve the optimal (both hunt Stag) outcome?

  Researchers have estimated the long run demand elasticity

Researchers have estimated the long run demand elasticity for almonds is -0.47, and the long run supply elasticity is 12.0. The short run demand elasticity for almonds is -0.30

  To calculate the opportunity cost

If a country is currently producing 11 units of health care and 16 units of education. what is the  opportunity cost of producing 5 more units of education?

  Difference between a monopoly and an oligopoly

Explain the difference between a monopoly and an oligopoly, and a cartel and provide an example of a monopoly, an oligopoly, and a cartel.

  1 a small modular nuclear reactor delivers 100 mwe and

1. a small modular nuclear reactor delivers 100 mwe and has a capital cost of 1500kwe costs 5 millionyear for

  Describe what would make this an effective price ceiling

Consider the market for ipods. The government decides to impose a price ceiling on ipods. You are told that this is an effective price ceiling. Describe what would make this an effective price ceiling.

  A consumer is currently purchasing three pairs of jeans and

A consumer is currently purchasing three pairs of jeans and five T-shirts per year. The price of jeans is $30, and T-shirts cost $10. At the current rate of consumption, the marginal utility of jeans is 60, and the marginal utility of T-shirts

  Determine what effect a price increase would hence on total

RKT corporation is a publisher of Economics books. The demand function for its books is given by the equation Qx = 12000 - 5000 Px + 5y + 500 Pc where Px is the price charged for RKT's boks, y is income per capita and Pi is the price of books from co..

  Making it cost- less for them to communicate

Ronald owns a cattle farm at the source of a long river. His cattle’s waste flows into the river and down many miles to where Carla lives. Carla gets her drinking water from the river. By allowing his cattle’s waste to flow into the river, Ronald imp..

  Is the measure stabilizing or destabilizing

Some states are required to balance their budgets. Is this measure stabilizing or destabilizing? Suppose all states were committed to a balanced budget philosophy and the economy moved into a recession. What effects would this philosophy have on t..

  What might be the long run effect of raising price of gas

When a government wants to increase tax revenue, they will often increase the sales tax on gasoline. Using price elasticity of demand, explain why the tax would be placed on gasoline rather than, say, yachts. What might be the long run effect of r..

  Which industry is labor intensive

Give the percentage change in the rental on capital and percentage change in wage and compare the magnitude of the percentage in the rental on capital with percentage change in wage in part (b). Use notational format.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd