Solutions for M,Economics, The Basics, 2024 Release by Mandel (All Chapters included)
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M,Economics, The Basics 2024 Release Mandel
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M,Economics, The Basics 2024 Release Mandel
Complete Solutions Manual for M,Economics, The Basics, 4e, 4th Edition, 2024 Evergreen Release by Michael Mandel; ISBN13: 9781265096229...(Full Chapters are included and organized in reverse order from Chapter 19 to 1)...1. Introduction
2. Demand and Supply The Basics of the Market Economy
3. M...
M,Economics, The Basics, 2024
Release by Michael Mandel
Complete Chapter Solutions Manual
are included (Ch 1 to 19)
** Immediate Download
** Swift Response
** All Chapters included
,Table of Contents are given below
1. Introduction
2. Demand and Supply The Basics of the Market Economy
3. Market Equilibrium and Shifts
4. How Businesses Work
5. Competition and Market Power
6. Government and the Economy
7. The First Step into Macroeconomics
8. Inflation
9. Growth
10. Business Cycles, Unemployment, and Inflation
11. Fiscal Policy
12. Monetary Policy
13. The Financial Markets
14. International Trade
15. Technological Change
16. Economics of the Labor Market
17. The Distribution of Income
18. Economics of Health Care and Retirement
19. Economics of Energy, the Environment, and Global Climate Change
,Solutions Manual organized in reverse order, with the last chapter displayed first, to ensure
that all chapters are included in this document. (Complete Chapters included Ch19-1)
Chapter 19
The Economics of Energy, the Environment, and Global Climate
Change
Answers to End-of-Chapter Problems
1.
Q: The price of jet fuel roughly doubled in early 2022 after the Russian invasion of
Ukraine. (LO19-1)
a) What effect did that price increase have on the supply curve for airplane travel?
b) Show what changed on a supply–demand diagram.
c) All other things being equal, what effect would that change have on the price of air
travel tickets?
d) All other things being equal, how would the quantity of air travel change?
A: a) Decrease the supply of airplane travel; b) see graph below; c) increase; d) decrease
Explanation:
a) Because jet fuel is an input for the suppliers of airplane travel, this increase in the
price of crude oil (and the subsequent increase in jet fuel) will cause a decrease or
leftward shift in the supply of airplane travel.
b) The result of the oil price increase would decrease the supply of airplane travel,
therefore, shifting the supply curve left.
c) All other things being equal, the equilibrium price of airplane travel will increase.
d) All other things being equal, the equilibrium quantity of airplane travel will decrease.
2.
1
, Q: In 2023, the Department of Energy (DOE) projected that the price of electricity,
adjusted for inflation, would remain roughly flat for the next 25 years. Meanwhile, the
price of gasoline, adjusted for inflation, was also expected to remain roughly flat. (LO19-
2)
a) If the DOE is right, are these price trends likely to increase the demand for electric
vehicles? Explain.
b) Suppose the federal government increases the tax on gasoline. Draw a supply–
demand diagram for electric vehicles and show how the curves shift as the tax on
gasoline increases. Label the new equilibrium point.
A: a) No, demand for electric vehicles will be unchanged; b) see graph below.
Explanation:
a) The demand for electric cars is not likely to change if neither electric prices are
expected to decrease nor gas prices to rise.
b) If a tax is levied on gasoline, people will switch to electric cars. This will cause the
demand curve to shift rightward, from D to D’. Both price and quantity of electric
cars increase.
3.
Q: It is common to use the tax system to help support new energy technologies. The
Inflation Reduction Act of 2022 authorized tax credits of up to $7500 for a new electric
vehicle, depending on its characteristics and whether it is substantially produced in the
United States. (LO19-2)
a) What effect does the tax credit have on the number of electric vehicles sold?
b) Does the tax credit raise or lower the price charged by sellers of electric vehicles?
A: a) The tax credit will increase the number of electric cars sold because it lowers the
price for buyers without lowering the return to sellers; b) The tax credit raises the price
charged by sellers, but buyers still pay less than they would without the tax credit.
Explanation:
a) The tax credit will increase the number of electric cars sold, by lowering the price for
buyers without lowering the return to sellers.
2
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