micro chapter 4
he diagram at right shows the market for pharmaceutical drugs. The pharmaceutical industry has benefited from advances in research and development that enable manufacturers to identify potential cures more quickly and therefore at lower cost. At the same time, the aging of our society has increased the demand for new drugs. Using the line drawing tool, illustrate the impacts of these developments on both the demand and supply. Label the new lines. Carefully follow the instructions above, and only draw the required objects. 1)The equilibrium market quantity will _____________ . 2)The equilibrium market price will _____________________________
)The equilibrium market quantity will __increase__ . 2)The equilibrium market price will ____change in an indeterminate way__
suppose that in the figure to the right, the government lowers the floor price of milk below the displayed $0.10-per-pound floor price, to $0.09 per pound. Will the excess quantity of milk supplied increase or decrease as a consequence? 1)At the floor price of $0.10 per pound, the excess quantity of milk supplied is _____billion pounds per time period. 2)of milk from $0.10 per pound to $0.09 per pound, the excess quantity of milk supplied will ________
1) 1 billion 2) decrease
Suppose that in the figure to the right, the government reduces the floor price of milk below the displayed $0.10-per-pound floor price, to $0.08 per pound. Will the excess quantity of milk supplied increase or decrease as a consequence? 1)At the floor price of $0.10 per pound, the excess quantity of milk supplied is _____billion pounds per time period. If the government reduces the floor price of milk from $0.10 per pound to $0.08 per pound, the excess quantity 2)of milk supplied will _______to 3)_____billion pounds per time period.
1) 1 billlion 2) decrease 3) 0 billion
n recent years, the government of Pakistan has established a support price for wheat of about $0.2020 per kilogram of wheat.At this price, consumers are willing to purchase 1010 billion kilograms of wheat per year, while Pakistani farmers are willing to grow and harvest 1919 billion kilograms of wheat per year. The government purchases and stores all surplus wheat. 1)What are annual consumer expenditures on the Pakistani wheat crop? $ 2)What are annual government expenditures on the Pakistani wheat crop? $ 3)How much, in total, do Pakistani wheat farmers receive for the wheat they produce? $ 4)Suppose that the market clearing price of Pakistani wheat in the absence of price supports is equal to $0.15 per kilogram. At this price, the quantity of wheat demanded is 14 billion kilograms. In an unregulated market, how much is spent each year on wheat harvested in Pakistan? $ 5)Under the government wheat price-support program, how much more is spent each year on wheat harvested in Pakistan than otherwise would have been spent in an unregulated market for Pakistani wheat? $
1) 2 billion 2) 1.8 billion 3.) 3.8 billion 4) 2.1 billion 5) 1.7 billion
Consider the diagram at right, which depicts the labor market in a city that has adopted a 'living wage law' requiring employers to pay a minimum wage LOADING... rate of $9 per hour. 1)What condition exists in this city's labor market at the present minimum wage of $9 per hour? There is _____________ . 2)How many people are unemployed at this wage? 3)A city councilwoman has proposed amending the living wage law. She suggests reducing the minimum wage to $6 per hour. Assuming that the labor demand and supply curves were to remain in their present positions, how many people would be unemployed at a $6 minimum wage? 4)This is because at a wage of $6 per hour A. there are more workers supplied than demanded. B. there is a surplus of labor. C. the demand for workers is higher than the quantity demanded. D. the quantity demanded of workers is higher than the quantity supplied of workers. 5)A councilman has offered a counterproposal. In his view, the current minimum wage is too low and should be increased to $10 per hour. Assuming that the labor demand and supply curves were to remain in their present positions, how many people would be unemployed at a $10 minimum wage?
1) Surplus of labor 2) 4 thousand workers 3) 0 thousand workers 4) D- the quantity demanded of workers is higher than the quantity supplied of workers 5) 8 thousand workers
In advance of the recent increase in the U.S. minimum wage rate, the government of the state of Arizona decided to boost its own minimum wage by $1.60 per hour. This pushed the wage rate earned by Arizona teenagers above the equilibrium wage rate in the teen labor market. What is the predicted effect of this action by Arizona's government on each of the following? 1)The quantity of labor supplied by Arizona teenagers will 2)The quantity of labor demanded by employers of Arizona teenagers will 3)The number of unemployed Arizona teenagers in this city will
1) increase 2) decrease 3) increase
in 2016, the government of a nation established a price support for wheat. The government's support price has been above the equilibrium price each year since, and the government has purchased all wheat over and above the amounts that consumers have bought at the support price. Every year since 2016, there has been an increase in the number of wheat producers in the market. No other factors affecting the market for wheat have changed. Predict what has happened every year since 2016 to each of the following: 1)The quantity of wheat supplied by wheat producers has ▼ 2)The quantity of wheat demanded by wheat consumers has ▼ 3)The quantity of wheat purchased by the government has
1) increased 2) stayed the same 3)increased
he following table depicts the quantity demanded and quantity supplied of studio apartments in a small college town. 1)What is the market price of apartments in this town? 2)What is the equilibrium quantity of apartments in this town? . 3)If this town imposes a rent control LOADING... of $450 per month, how many studio apartments will be rented? .
1)500 2)2000 . 3)1,800 .
Consider the market for wheat in Pakistan, illustrated in the graph at right. In recent years, the government of Pakistan has established a support price for wheat of about $0.1818 per kilogram of wheat. At this price, consumers are willing to purchase approximately 1111 billion kilograms of wheat per year, while Pakistani farmers are willing to grow and harvest approximately 1919 billion kilograms of wheat per year. The government purchases and stores all surplus wheat. 1)What are annual consumer expenditures on the Pakistani wheat crop? $___ billion (round your answer to two decimal places) 2)How much, in total, do Pakistani wheat farmers receive for the wheat they produce? $___ (round your answer to two decimal places) 3)What are annual government expenditures on the Pakistani wheat crop? $_____ billion (round your answer to two decimal places)
1)Consumers are paying the price of wheat (0.18 per kilogram) times the quantity demanded (11 billion gkilograms) or __1.98 billion__ 2)Producers receive the price of wheat ($0.1818 per kilogram) times the quantity produced (1919 billion kilograms) or ___$3.42 billion__ 3).Annual crop expenditures are the difference between what producers receive ($3.423.42 billion) and what consumers pay ($1.981.98 billion) or ____$1.44 billion.___
The diagram at right shows the market for basic cell phones. In recent years, technological improvements have greatly reduced the costs of producing basic cell phones, and a number of new firms have entered the cell phone industry. At the same time, prices of substitutes for cell phones, such as smartphones and some tablet devices, have declined considerably. 1)Using the line drawing tool, illustrate the impacts of these developments on both the demand and supply. Label the new lines. Carefully follow the instructions above, and only draw the required objects. 2)The equilibrium market price will ____________________________________________ .3)The equilibrium market quantity will _____________________________________________ .
1)S^1 should b paralell and above line S. D^1 should be paralel and below line D 2)the equilibrium market price will ___decrease____ . 3)The equilibrium market quantity will ___change in an indeterminate way___ .
Consider the figure to the right. The current demand and supply curves are Upper D 1D1 and Upper S 1S1, at which the equilibrium price and quantity are Upper P 1P1 and Upper Q 1Q1. If there is an increasean increase in the price of an item that consumers regard as a substitute for this good, which curve shifts, and in which direction does it shift? What happens to the market clearing price and to the equilibrium quantity? Using the line drawing tool, draw either a new demand curve (Upper D 2D2) or a new supply curve (Upper S 2S2) that shows how an increasean increase in the price of a substitute affects the market for this good. Properly label your line. Using the point drawing tool, indicate the new equilibrium price and quantity. Label this point 'Upper E 2E2.' Carefully follow the instructions above, and only draw the required objects. 1)The market clearing price for this good will __________ 2) and the equilibrium quantity will ____________
1)the market clearing price for this good will __rise 2) and the equilibrium quantity will __rise
Consider the figure to the right. The current demand and supply curves are Upper D 1D1 and Upper S 1S1, at which the equilibrium price and quantity are Upper P 1P1 and Upper Q 1Q1. If firms incur higher costs inincur higher costs in producing this good, which curve shifts, and in which direction does it shift? What happens to the market clearing price and to the equilibrium quantity? Using the line drawing tool, draw either a new demand curve (Upper D 2D2) or a new supply curve (Upper S 2S2) that shows how higher costs affecthigher costs affect the market for this good. Properly label your line. Using the point drawing tool, indicate the new equilibrium price and quantity. Label this point 'Upper E 2E2.' Carefully follow the instructions above, and only draw the required objects. 1)The market clearing price for this good will rise 2)and the equilibrium quantity will fall
1)the market clearing price for this good will rise 2)and the equilibrium quantity will fall
the city of New Raven has decided to impose rent controls on office buildings in the city. As a result of this, the new rent A. celing is lower than the equilibrium rent and there will be a shortage of rental offices. .B. floor is equal to the equilibrium rent and there will be a surplus of rental offices. C. floor is lower than the equilibrium rent and there is no shortage of rental offices. D. celing is higher than the equilibrium rent and there will be a surplus of rental offices.
A. celing is lower than the equilibrium rent and there will be a shortage of rental offices.
Consider the figure to the right. Suppose that the government reducesreduces the ceiling price from $600 per unit to $500 per unit. Would the shortage at the $500-per-unit ceiling price be greater than the shortage at the $600-per-unit price ceiling? At the ceiling price of $600 per unit, the shortage equals _______ units per time period. (Enter your response as a whole number.) the shortage at the $500-per-unit ceiling price would be _________________________the shortage at the $600-per-unit price ceiling.
At the ceiling price of $600 per unit, the shortage equals _10000_ units per time period. (Enter your response as a whole number.) The shortage at the $500-per-unit ceiling price would be ____greater than___ the shortage at the $600-per-unit price ceiling.
There are simultaneous changes in the demand for and supply of tablet devices, with the consequences being an unambiguous increaseincrease in the equilibrium quantity of these devices but no change in the market clearing price. What changes in the demand for and supply of tablet devices could have generated these outcomes? A. Demand decreases and supply increases. B. Demand increases and supply increasesDemand increases and supply increases. .C. Demand decreases and supply decreasesDemand decreases and supply decreases. D. Demand increases and supply decreases.
B. Demand increases and supply increasesDemand increases and supply increases.
There are simultaneous changes in the demand for and supply of global-positioning-system (GPS) devices, with the consequences being an unambiguous decreasedecrease in the market clearing price of these devices but no change in the equilibrium quantity. What changes in the demand for and supply of GPS devices could have generated these outcomes? A. Demand decreases and supply decreases. B. Demand increases and supply decreasesDemand increases and supply decreases. C. Demand decreases and supply increasesDemand decreases and supply increases. .D. Demand increases and supply increases
C. Demand decreases and supply increasesDemand decreases and supply increases.
The consequences of decriminalizing illegal drugs have long been debated. Some claim that legalization will lower the price of these drugs and reduce related crime. Others claim that more people will use these drugs. Suppose that some of these drugs are legalized so that anyone may sell them and use them. Based on positive economic analysis, such decriminalization will lead to A. an increase in quantity demanded of these drugs and in price. B. a reduction in both quantity demanded of these drugs and in price. C. a reduction in quantity demanded of these drugs and an increase in price. D. a reduction in price of these drugs and an increase in quantity demanded.
D. a reduction in price of these drugs and an increase in quantity demanded.
Suppose that the U.S. government places a ceiling on the price of a medical drug of $7. 1.) Using the point drawing tool, plot the quantity supplied on the supply line and label it. 2.) Using the point drawing tool, plot the quantity demanded on the demand line and label it. 3.) Using the double arrow line, indicate, via a label, the shortage or surplus. Carefully follow the instructions above, and only draw the required objects. Suppose that a black market for the medical drug arises, with pharmaceutical firms secretly selling the drug at higher prices. The legal price is $___ The maximum quantity demanded for black market service is A. 2 thousand customers. B. 98 thousand customers. C. 102 thousand customers. D. 4 thousand customers. . The maximum quantity supplied by black market providers is A. up to 4 thousand customers. B. between 98 and 102 thousand customers. C. up to 98 thousand customers. D. up to 2 thousand customers. The highest feasible black market price is $__
The legal price is $7 The maximum quantity demanded for black market service is D. 4 thousand customers. The maximum quantity supplied by black market providers is A. up to 4 thousand customers. highest feasible black market price is $9
he table below illustrates the demand and supply schedules for seats on air flights between two cities: What is the market price for seats? $___ What is the equilibrium quantity of seats? _______ Now suppose that federal authorities limit the number of flights between the two cities to ensure that no more than 1,200 passengers can be flown. Using the line drawing tool, illustrate this restriction on the graph at right. Label this line 'Restriction'. Carefully follow the instructions above, and only draw the required objects. What is the price of seats now? $______(Hint: How much are the 1,200 passengers willing to pay for their flights?)
What is the market price for seats? $400. What is the equilibrium quantity of seats? 1600. What is the price of seats now? $600
Suppose that the figure to the right applies to the labor market in the state of Ohio, in which Upper W Subscript mW is the minimum wage established by the federal government, and Upper Q Subscript sQ minus−Upper Q Subscript dQ is therefore Ohio's excess quantity of labor supplied as a result of the federal wage minimum. What would happen to Ohio's excess quantity of labor supplied if the state were to decide to establish its own minimum wage at a level above the federal minimum? If the state of Ohio were to establish its own minimum wage at a level aboveabove the federal minimum, the excess quantity of labor supplied would ___________
increase
