Microeconomics: Principles, Problems, & Policies, 20th Edition

Published by McGraw-Hill Education
ISBN 10: 0077660811
ISBN 13: 978-0-07766-081-9

Chapter 3 - Demand, Supply, and Market Equilibrium - Problems: 1

Answer

Refer to table for part a) Part b) At 5, Dex demands the least price At 7, Tex demands the most price Part c) Tex's quantity demanded increases the most Part d) If Tex withdrew from the market, the market demand curve curve would shift leftward If Dex doubled his purchases, the market demand curve would shift rightward Part e) Change in demand
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Work Step by Step

Part a) 0+3+1=4 12-8-2=2 19-3-4=12 27-17-6=4 23+5+8=36 Part b) Refer to table in 1a Part c) Change for Tex = 8-12 = -4 Change for Dex = 2-3 = -1 Change for Rex = 2-4 = -2 Part d) If Tex withdrew from the market, market demand would decrease, and hence at each price the quantity demanded would decrease, and the demand curve would shift leftward If Dex doubled his purchases, market demand would increase, and hence at each price the quantity demanded would increase, and the demand curve would shift rightward Part e) A change of quantity demanded would involve a change in price, and since price remains constant at $6 while the quantity demanded changes, this would have been from a change in demand, as the curve has shifted rightward to increase the quantity demanded at the same price
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