Macroeconomics (7th Edition)
7th Edition
ISBN: 9780134738314
Author: R. Glenn Hubbard, Anthony Patrick O'Brien
Publisher: PEARSON
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Question
Chapter 4.A, Problem 1RQ
To determine
The information from the intercepts of linear demand and supply
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Students have asked these 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
(?)
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 =
Q:
Q:
Q:
Assume that the demand curve D(p) given below is the market demand for widgets:
Q = D(p) = 1604 - 16p, 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.
Chapter 4 Solutions
Macroeconomics (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 - What is economic efficiency? Why do economists...Ch. 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 - Prob. 4.4.4RQCh. 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
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