Find more information about:ISBN:007290027X 262207720711101411OCLC Number:156902383Notes:Includes index.Description:xxiii, 833 pages: illustrations (some color); 26 cmContents:1. Introduction -2.
Supply and Demand -3. Balancing Benefits and Costs -4. Principles and Preferences -5. Constraints, Choices, and Demand -6. From Demand to Welfare -7. Technology and Production -8.
Profit Maximization -10. Choices Involving Time -11. Choices involving Risk -12.
Choices Involving Strategy -13. Behavioral Economics -14. Equilibrium and Efficiency -15. Market Intervention -16.
General Equilibrium, Efficiency, and Equity -17. Monopoly -18. Pricing Policies -19. Oligopoly -20. Externalities and Public Goods -21. Information Imperfections.Responsibility:B.
Douglas Bernheim, Michael D. Whinston.More information:.Abstract.
Microeconomics 2nd edition bernheim solutions manual.1.Chapter 02 – Supply and DemandMicroeconomics 2nd Edition Bernheim Solutions ManualDownload: 2nd Edition Bernheim Test BankDownload: to Discussion Questions1. After terrorists destroyed the World Trade Center and surrounding officebuildings on September 11, 2001, some businesspeople worried about the risks ofremaining in Manhattan. What effect would you expect their concern to have onthe price of office space in Manhattan?
Over time, those fears eased and the areaaround the World Trade Center site was made into a park, so the destroyed officebuildings were never rebuilt. Who would be likely to gain economically from thecreation of this park? Who would be likely to lose?Answer:The destruction of the World Trade Center caused a change in both the supply of and thedemand for office space in Manhattan. The change in supply was a physical reduction inthe available space; the change in demand came from worry from businesspeople aboutissues of safety. When both supply and demand decrease in this way, the effect onquantity is obvious: there will be less office space rented in Manhattan.
What is not clearis the effect on price. If the decrease in supply were greater than the decrease in demand,price would rise; if the other way around, price would fall.In the long run, after office space is rebuilt, the supply curve would shift back out to (orcloser to) its original position. If demand never rebounded, then this would cause anoverall reduction in the price of office space.However, now that the area around the World Trade Center has been turned into a park,the decrease in supply is permanent. Further, if demand were to rebound (say because thepark causes a lower density of office space, making it a less likely target for anotherattack, thereby alleviating concerns), this would mean a higher price in the long run.Those who owned the office space not destroyed by the attacks would be the “winners,”as they would see their prices rise. The “losers” would be those who pay higher rents fortheir office space.2.
Government were to ban imports of Canadian beef for reasonsunrelated to health concerns, what would be the effect on the price of beef in theUnited States? How would the typical American’s diet change? What about thetypical Canadians? What if the ban suggested to consumers that there might behealth risks associated with beef?Answer:.Chapter 02 – Supply and DemandA ban on Canadian beef would lower the supply of beef available to U.S. Consumers,which would cause an increase in the price of beef. Initially, before the price changes,there will not be enough beef to satisfy demand. This will cause upward pressure onprices, driving some consumers out of the market, and leading some suppliers into themarket.
Depending on how much of the beef being sold in the U.S. Was Canadian beef,the increase could be great. Americans will reduce their beef consumption (though moreAmericans are producing beef than before).Chapter 02 – Supply and DemandIn Canada, beef producers would be supplying too much beef to the market, with no oneto buy it.
This will cause downward pressure on prices. Because of the decrease in price,some Canadian consumers will enter the market and some producers will leave themarket. Canadians will consume more beef (and produce less).Unless U.S. Consumers believed that the health risk associated with Canadian beef alsoimplied health risks associated with U.S.-produced beef, the analysis for the U.S. Wouldnot be any different. Consumers did believe that all beef was unsafe, this wouldcause a decrease in the demand for beef, which would reverse the price-increasing trendof the ban (making the final effect on price ambiguous) while further reducing beefconsumption.If Canadian consumers believed that their beef was unsafe, there would also be adecrease in demand.
Microeconomics Bernheim Whinston 2008 Edition Hotel Reviews
This would counter the trend toward consuming more beef (so thatthe final effect on beef consumption would be ambiguous, but it would further reduce theprice.3. Published reports indicate that Economics professors have higher salaries thanEnglish professors. Discuss the factors that might be responsible for this.Answer:Salaries are determined by demand and supply. Relative to English, fewer EconomicsPh.D.’s are granted every year. Additionally, economists have relatively morenonacademic job options, further reducing the supply of Economics professors, relativeto English.
There may be more demand for English professors, but the difference indemand is not large enough to make up for the difference in supply.4. In the last 30 years, the wage difference between high school and collegegraduates has grown dramatically.
At the same time, the fraction of adults overage 25 that have college degrees has risen from around 16 percent to over 27percent. How might the widespread adoption of computers explain these trends?Answer:Widespread adoption of computers has increased the demand for computer literateworkers while decreasing the demand for computer illiterate workers. College graduatesare more likely to have the necessary computer literacy. Also, the increase in demand forcomputer literate workers has been faster than the increase in supply of collegegraduates.Chapter 02 – Supply and DemandAnswers to Problems2.1 Consider again the demand function for corn in formula (1).
Graph thecorresponding demand curve when potatoes and butter cost $0.75 and $4 perpound, respectively, and average income is $40,000 per year. At what price doesthe amount demanded equal 15 billion bushels per year?