- 2.1: A survey indicated that chocolate ice cream is Americas favoriteice...
- 2.2: In a supply and demand diagram, draw the change in demandfor hambur...
- 2.3: The market for many goods changes in predictable ways accordingto t...
- 2.4: Show in a diagram the effect on the demand curve, the supplycurve, ...
- 2.5: Find the flaws in reasoning in the following statements, payingpart...
- 2.6: In Rolling Stone magazine, several fans and rock stars, includingPe...
- 2.7: After several years of decline, the market for handmadeacoustic gui...
- 2.8: Will Shakespeare is a struggling playwright in sixteenthcenturyLond...
- 2.9: The small town of Middling experiences a sudden doubling ofthe birt...
- 2.10: Use a diagram to illustrate how each of the following events affect...
- 2.11: Although he was a prolific artist, Pablo Picasso painted only1,000 ...
- 2.12: Draw the appropriate curve in each of the following cases. Is itlik...
- 2.13: Suppose it is decided that rent control in New York City will beabo...
- 2.14: In the late eighteenth century, the price of bread in New YorkCity ...
- 2.15: Suppose the U.S. government decides that the incomes of dairyfarmer...
- 2.16: As noted in the text, European governments tend to makegreater use ...
- 2.17: Until recently, the standard number of hours worked per weekfor a f...
- 2.18: For the last 70 years, the U.S. government has used price supportst...
- 2.19: The waters off the north Atlantic coast were once teeming withfish....
Solutions for Chapter 2: Supply and Demand
Full solutions for Krugman's Macroeconomics for AP* | 1st Edition
the limit on the consumption bundles that a consumer can afford
a group of firms acting in unison
the property whereby countries that start off poor tend to grow more rapidly than countries that start off rich
an economy that does not interact with other economies in the world
efficient markets hypothesis
the theory that asset prices reflect all publicly available information about the value of an asset
goods produced domestically and sold abroad
the uncompensated impact of one person’s actions on the well-being of a bystander
a good for which, other things being equal, an increase in income leads to a decrease in demand
labor-force participation rate
the percentage of the adult population that is in the labor force
the political philosophy according to which the government should choose policies deemed just, as evaluated by an impartial observer behind a “veil of ignorance”
the claim that the government should aim to maximize the well-being of the worst-off person in society
model of aggregate demand and aggregate supply
the model that most economists use to explain shortrun fluctuations in economic activity around its long-run trend
the tendency of a person who is imperfectly monitored to engage in dishonest or otherwise undesirable behavior
variables measured in monetary units
price elasticity of demand
a measure of how much the quantity demanded of a good responds to a change in the price of that good, computed as the percentage change in quantity demanded divided by the percentage change in price
goods that are neither excludable nor rival in consumption
deposits that banks have received but have not loaned out
an action taken by an uninformed party to induce an informed party to reveal information
an action taken by an informed party to reveal private information to an uninformed party
Tragedy of the Commons
a parable that illustrates why common resources are used more than is desirable from the standpoint of society as a whole