Answers to Study Questions Set 2

Answers to Study Questions Set 2 - Answers to Study...

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Answers to Study Questions Set 2 Chapter 3 Question 6 ( Key Question ) What effect will each of the following have on the supply of automobile tires? a. A technological advance in the methods of producing tires. b. A decline in the number of firms in the tire industry. c. An increase in the price of rubber used in the production of tires. d. The expectation that the equilibrium price of auto tires will be lower in the future than it is currently. e. A decline in the price of large tires used for semi-trucks and earth hauling rigs (with no change in the price of auto tires). f. The levying of a per-unit tax in each auto tire sold. g. The granting of a 50-cent-per-unit subsidy for each auto tire produced. Supply increases in (a), (d), (e), and (g); decreases in (b), (c), and (f). Chapter 3 Question 8 ( Key Question ) Suppose the total demand for wheat and the total supply of wheat per month in the Kansas City grain market are as follows: Thousands of bushels demanded Price per bushel Thousand
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This note was uploaded on 10/13/2009 for the course ECON 1220 taught by Professor Evans during the Winter '08 term at Langara.

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Answers to Study Questions Set 2 - Answers to Study...

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