- 7.1: Melissa buys an iPhone for $120 and gets consumer surplus of $80.a....
- 7.2: An early freeze in California sours the lemon crop. Explain what ha...
- 7.3: Suppose the demand for French bread rises. Explain what happens to ...
- 7.4: 3.John has been working as a tutor for $300 a semester. When the un...
- 7.5: Ernie owns a water pump. Because pumping large amounts of water is ...
- 7.6: Consider a market in which Bert from problem 4 is the buyer and Ern...
- 7.7: The cost of producing flat-screen TVs has fallen over the past deca...
- 7.8: There are four consumers willing to pay the following amounts for h...
- 7.9: One of the largest changes in the economy over the past several dec...
- 7.10: A friend of yours is considering two cell phone service providers. ...
- 7.11: Consider how health insurance affects the quantity of healthcare se...
Solutions for Chapter 7: Consumers, Producers, and the Efficiency of Markets
Full solutions for Principles of Microeconomics | 7th Edition
average variable cost
variable cost divided by the quantity of output
a certificate of indebtedness
an excess of government spending over government receipts
cross-price elasticity of demand
a measure of how much the quantity demanded of one good responds to a change in the price of another good, computed as the percentage change in quantity demanded of the first good divided by the percentage change in price of the second good
the property whereby the benefit from an extra unit of an input declines as the quantity of the input increases
total revenue minus total cost, including both explicit and implicit costs
the uncompensated impact of one person’s actions on the well-being of a bystander
federal funds rate
the interest rate at which banks make overnight loans to one another
goods produced abroad and sold domestically
a good for which, other things being equal, an increase in income leads to a decrease in demand
law of demand
the claim that, other things being equal, the quantity demanded of a good falls when the price of the good rises
a market structure in which many firms sell products that are similar but not identical
the tendency of a person who is imperfectly monitored to engage in dishonest or otherwise undesirable behavior
claims that attempt to prescribe how the world should be
a market structure in which only a few sellers offer similar or identical products
people who systematically and purposefully do the best they can to achieve their objectives
an action taken by an informed party to reveal private information to an uninformed party
a cost that has already been committed and cannot be recovered
a government policy that directly influences the quantity of goods and services that a country imports or exports
costs that vary with the quantity of output produced