• Home
  • Textbooks
  • Microeconomics and Behavior
  • Supply and Demand

Microeconomics and Behavior

Robert Frank

Chapter 2

Supply and Demand - all with Video Answers

Educators


Chapter Questions

Problem 1

What is the difference between "scarcity" and "shortage"?

Check back soon!
02:20

Problem 2

What would the supply curve look like for a good that is not scarce? Assuming the good is useful, what would its demand curve look like? Explain why a positive price for a commodity implies that it is scarce.

Rashmi Sinha
Rashmi Sinha
Numerade Educator
View

Problem 3

Give two examples of actions taken by the administration of your college or university whose effect is to prevent specific markets from reaching equilibrium. What evidence of excess supply or excess demand can you cite in these examples?

Rashmi Sinha
Rashmi Sinha
Numerade Educator
00:45

Problem 4

What is the difference between "a reduction in supply" and "a reduction in the quantity supplied"?

Daniel Cisneros
Daniel Cisneros
Numerade Educator
View

Problem 5

Identify each of the following as (1) a change in demand or (2) a change in the quantity demanded.
a. Grape consumption falls because of a consumer boycott.
b. Grape consumption falls because of a tax on grape producers.
c. Grape consumption rises because of a good harvest.
d. Grape consumption rises because of a change in tastes.

Rashmi Sinha
Rashmi Sinha
Numerade Educator
00:53

Problem 6

When there is excess supply, why is any single seller able to sell all she wants to by offering only a small reduction below the current market price?

Daniel Cisneros
Daniel Cisneros
Numerade Educator

Problem 7

Give an example of a market in which the allocative function of price is not very important.

Check back soon!

Problem 8

Suppose you are a government official and need to collect revenue by taxing a product. For political reasons, you want the burden of the tax to fall mostly on consumers, not firms (who have been substantial contributors to your campaign fund). What should you look for when picking a product to tax?

Check back soon!
00:34

Problem 9

Which would a rational poor person be more likely to accept and why?
a. A $$\$ 50,000$$ Mercedes (immediate resale value $=$ $$\$ 30,000$$ )
b. $$\$ 35,000 \mathrm{cash}$$

Jennifer Stoner
Jennifer Stoner
Numerade Educator