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Chapter 2 Answers to Worksheet Figure 1 Figure 2 352

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Chapter 2 Appendix Answers to Worksheet 1. 10 visits to doctors; 1 visit to Disney World 2. A to B: lose 10 PCs; B to C: lose 20 PCs; C to D: lose 30 PCs; D to E: lose 40 PCs; E to F: lose 50 PCs. 353
Chapter 3 Answers to Worksheet Figure 1 (1) Equilibrium price = \$15.50; equilibium quantity = 300 (3) Equilibrium price = \$14.50; equilibrium quantity = 250 (4) decrease; decrease 354

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Figure 2 (1) Equilibrium price = \$122; equilibrium quantity = 65 (3) Equilibrium price = \$100; equilibrium quantity = 80 (4) decrease; increase 3. (a) price ceiling (b) shortage (c) 14 4. (a) price floor (b) surplus (c) 15 (or a bit more) 5. (a) price floor (b) surplus (d) 44 6. (a) price ceiling (b) shortage (c) 40 355
Chapter 5 Answers to Worksheet 1. consumption = 2000, saving = –2000, autonomous consumption = 2000, and induced consumption = 0. 2. consumption = 2500, saving = 0, autonomous consumption = 2000, and induced consumption = 500. 3. consumption = 3200; saving = –3200; autonomous consumption = 3200; induced consumption = 0. 4. consumption = 3600, saving = 1600, autonomous consumption = 3200, and induced consumption = 400. 5. \$10,000 \$40,000 \$50,000 n consumptio Income Disposable Savings * 2 . 5 1 000 , 50 \$ * 000 , 10 \$ Income Disposable saving APS 8 . 5 4 000 , 50 \$ 000 , 40 \$ Income Disposable n consumptio APC = = = = = = = = = = = 6. 2 . 5 1 20 4 000 , 20 \$ 000 , 4 \$ Income Disposable saving APS \$16,000 \$4,000 \$20,000 savings Income Disposable n Consumptio * 8 . 20 8 20 16 000 , 20 \$ * 000 , 16 \$ Income Disposable n consumptio APC = = = = = = = = = = = = = 356

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7. 25 . 4 1 20 5 000 , 20 \$ * 000 , 5 \$ Income Disposable in change saving in change MPS 75 . 4 3 20 15 \$20,000 \$15,000 Income Disposable in change n consumptio in change MPC = = = = = = = = = = *Disposable Income - C = Saving \$50,000 - \$40,000 = \$10,000 70,000 - 55,000 = 15,000 (change in saving = \$5,000) 8. 8 . 5 4 25 20 000 , 25 \$ * 000 , 20 \$ Income Disposable in change n consumptio in change MPC = = = = = *Disposable Income - Saving = Consumption \$75,000 - \$5,000 = \$70,000 100,000 - 10,000 = 90,000 (change in consumption = \$20,000) 2 . 5 1 25 5 000 , 25 \$ 000 , 5 \$ Income Disposable in change saving in change MPS = = = = = 9. Figure 3: (1) Consumption = 3200; saving = –1200. (2) Consumption = 4000; saving = 0. (3) Consumption = 4800; saving = 1200. 10. Figure 4: (1) Consumption = 4000; saving = –1000. (2) Consumption = 4500; saving = 1500. (3) Consumption = 5000; saving = 4000. 357
11. Disposable (Total) Autonomous Induced Income Saving Consumption Consumption Consumption 2000 -1000 3000 2000 1000 4000 0 4000 2000 2000 6000 +1000 5000 2000 3000 12. Table 4 Disposable (Total) Autonomous Induced Income Saving Consumption Consumption Consumption 3000 -2000 5000 4000 1000 6000 0 6000 4000 2000 9000 2000 7000 4000 3000 13. 0 . 1 4000 4000 Income Disposable n consumptio APC = = = 0 4000 0 Income Disposable saving APS = = = 14. 5 . 2

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## This note was uploaded on 07/27/2010 for the course ACCT 0455 taught by Professor Kingd during the Spring '10 term at Shoreline.

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