Answers to chapter 4

Answers to chapter 4 - SolutionstoEndofChapterExercises...

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Solutions to End-of-Chapter Exercises Chapter 4 SECTION 4.1:  THE DEMAND CURVE 1.1 Down arrow 1.2 Consumer income, price of other related goods, consumer expectations about future prices 1.3 Price of the product, quantity of the product purchased 1.4 horizontal 1.5 a. b. 11,000 SECTION 4.2: THE SUPPLY CURVE 2.1 Up Arrow 2.2 Wages paid to workers, the price of materials used in production, taxes paid by producers 2.3 lowest 2.4 horizontal 2.5 The marginal cost of the 21 st house exceeds $150,000, and the marginal cost of the 22 nd house is greater than $160,000. 2.6 a. [ Errata for Exercise 2.6: If you are using the first printing of the main book, exercise 2.6 on page 92 includes a graph. That graph supports exercise 3.5 on page 93. Alert your students to this error when you assign either exercise 2.6 or exercise 3.5.]
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44 Chapter 4 Market supply is kinked at P = $24 and Q = 14 million pounds b. Quantity supplied equals 5 million pounds at a price of 15 cents and 26 million pounds at a price of 30 cents. SECTION 4.3: MARKET EQUILIBRIUM BRINGING DEMAND AND SUPPLY TOGETHER
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Answers to chapter 4 - SolutionstoEndofChapterExercises...

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