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Intermediate Microeconomics: A Modern Approach

Hal R. Varian

Chapter 1

The Market - all with Video Answers

Educators

Chapter Questions

02:31

Problem 1

Suppose that there were 25 people who had a reservation price of $\$ 500$, and the 26 th person had a reservation price of $\$ 200$. What would the demand curve look like?

Anand Jangid
Anand Jangid
Numerade Educator
05:21

Problem 2

In the above example, what would the equilibrium price be if there were 24 apartments to rent? What if there were 26 apartments to rent? What if there were 25 apartments to rent?

Jonathan Tapiwa
Jonathan Tapiwa
Numerade Educator
04:01

Problem 3

If people have different reservation prices, why does the market demand curve slope down?

Jonathan Tapiwa
Jonathan Tapiwa
Numerade Educator
02:44

Problem 4

In the text we assumed that the condominium purchasers came from the inner-ring people- people who were already renting apartments. What would happen to the price of inner-ring apartments if all of the condominium purchasers were outer-ring people the people who were not currently renting apartments in the inner ring?

Jonathan Tapiwa
Jonathan Tapiwa
Numerade Educator
01:44

Problem 5

Suppose now that the condominium purchasers were all inner-ring people, but that each condominium was constructed from two apartments. What would happen to the price of apartments?

Jonathan Tapiwa
Jonathan Tapiwa
Numerade Educator
02:05

Problem 6

What do you suppose the effect of a tax would be on the number of apartments that would be built in the long run?

Jonathan Tapiwa
Jonathan Tapiwa
Numerade Educator
05:01

Problem 7

Suppose the demand curve is $D(p)=100-2 p$. What price would the monopolist set if he had 60 apartments? How many would he rent? What price would he set if he had 40 apartments? How many would he rent?

Jonathan Tapiwa
Jonathan Tapiwa
Numerade Educator
04:49

Problem 8

If our model of rent control allowed for unrestricted subletting, who would end up getting apartments in the inner circle? Would the outcome be Pareto efficient?

Jonathan Tapiwa
Jonathan Tapiwa
Numerade Educator