Microeconomics
2nd Edition
ISBN: 9780073375854
Author: B. Douglas Bernheim, Michael Whinston
Publisher: MCGRAW-HILL HIGHER EDUCATION
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Chapter 2, Problem 4P
To determine
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An economist has estimated that the demand function for cars is approximately D = −400P + 4I where I is the mean household income. The Supply of cars is estimated to be S = 2p
(a) What is the equilibrium price of cars (it will be a function of I)?(b) How does the equilibrium price of cars change when I changes?
Suppose the demand curve for an air fryer is given by the following linear function: p = 0.25x + 250.
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b) Explain why this demand curve would not do a good job of representing the relationship between the demand of a product and the price of an item.
Which factor that influences change in buying plan, other than price of good? Find out market equilibrium price and quantity from the demand function: QD = 15-4p and supply function: QS= - 1+ 6p. Show it graphically.
Chapter 2 Solutions
Microeconomics
Ch. 2 - Prob. 1DQCh. 2 - Prob. 2DQCh. 2 - Prob. 3DQCh. 2 - Prob. 4DQCh. 2 - Prob. 1PCh. 2 - Prob. 2PCh. 2 - Prob. 3PCh. 2 - Prob. 4PCh. 2 - Prob. 5PCh. 2 - Prob. 6P
Ch. 2 - Prob. 7PCh. 2 - Prob. 8PCh. 2 - Suppose the demand function for jelly beans in...Ch. 2 - Prob. 10PCh. 2 - Prob. 11PCh. 2 - Suppose the annual demand function for the Honda...Ch. 2 - Prob. 13PCh. 2 - The demand function for a product is Qd = 100 ...Ch. 2 - Prob. 2CPCh. 2 - Prob. 3CPCh. 2 - Prob. 4CPCh. 2 - Suppose that the demand function for jelly beans...
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- If the demand for a pair of shoes is given by 2p + 5q = 200 and the supply function for it is p − 2q = 10, compare the quantity demanded and the quantity supplied when the price is $70. quantity demanded ? pairs of shoes quantity supplied ? pairs of shoes Will there be a surplus or shortfall at this price? There will be a surplus or There will be a shortfallarrow_forwardGiven: (q is number of items) Demand function: d(q) = 743.6 – 0.6q² Supply function: s(q) = 0.5q² Find the equilibrium quantity: Find the equilibrium price: $ Submit Question itemsarrow_forwardsuppose the demand for shoes is given by qd=40-5p and supply is given by qs=10p-20arrow_forward
- What is wrong with this statement? Demand refers to the willingness of buyers to purchase different quantities of a good at different prices during a specific time period.arrow_forwardSuppose the demand for a product as a function of price is modeled by... GIve clear steps and explanations.arrow_forwardThe demand function for fountain pens last week is given as Qd=14-2P. If two fountain pens are sold at $4.00 each at the end of this week: Formulate the supply function. Find the equilibrium price. Find the equilibrium quantity.arrow_forward
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