Questions from Microeconomics

Q: Use supply and demand curves to illustrate how each of the

Use supply and demand curves to illustrate how each of the following events would affect the price of butter and the quantity of butter bought and sold: a.An increase in the price of margarine. b.An...

Q: How can a price ceiling make consumers better off?Under

How can a price ceiling make consumers better off?Under what conditions might it make them worse off?

Q: Explain the difference between a shift in the supply curve and

Explain the difference between a shift in the supply curve and a movement along the supply curve.

Q: Is the firm’s expansion path always a straight line?

Is the firm’s expansion path always a straight line?

Q: Suppose the price of regular-octane gasoline were 20 cents

Suppose the price of regular-octane gasoline were 20 cents per gallon higher in New Jersey than in Oklahoma.Do you think there would be an opportunity for arbitrage (i.e., that firms could buy gas in...

Q: Faced with constantly changing conditions, why would a firm ever

Faced with constantly changing conditions, why would a firm ever keep any factors fixed?What criteria determine whether a factor is fixed or variable?

Q: A certain brand of vacuum cleaners can be purchased from several

A certain brand of vacuum cleaners can be purchased from several local stores as well as from several catalogue or website sources. a.If all sellers charge the same price for the vacuum cleaner, will...

Q: Suppose that the Japanese yen rises against the U.S

Suppose that the Japanese yen rises against the U.S. dollar – that is, it will take more dollars to buy any given amount of Japanese yen.Explain why this increase simultaneously increases the real pri...

Q: Draw indifference curves that represent the following individuals’ preferences for hamburgers

Draw indifference curves that represent the following individuals’ preferences for hamburgers and soft drinks.Indicate the direction in which the individuals’ satisfaction (or utility) is increasing....

Q: Suppose the government regulates the prices of beef and chicken and

Suppose the government regulates the prices of beef and chicken and sets them below their market-clearing levels.Explain why shortages of these goods will develop and what factors will determine the s...