Edrftgyihu jiuh
Microeconomics, 18th
ST
Canadian Edition
UV
INSTRUCTOR’S
IA
SOLUTIONS
_A
MANUAL
PP
RO
Christopher T. S. Ragan
────────────────────────────────────────────────────
Comprehensive Instructor’s Solutions
VE
Manual for Instructors and Students
||| ||| || ||| || | || ||| | || ||| |
D?
© Christopher T. S. Ragan. All rights reserved. Reproduction or
distribution without permission is prohibited.
?
© MEDGEEK
, Edrftgyihu jiuh
Microeconomics — Instructor’s Solutions Manual
Christopher T. S. Ragan
ST
Chapter 1: Economic Issues and Concepts
Chapter 2: Economic Theories, Data, and Graphs
Chapter 3: Demand, Supply, and Price
UV
Chapter 4: Elasticity
Chapter 5: Price Controls and Market Efficiency
Chapter 6: Consumer Behaviour
Chapter 7: Producers in the Short Run
Chapter 8: Producers in the Long Run
IA
Chapter 9: Competitive Markets
Chapter 10: Monopoly, Cartels, and Price Discrimination
Chapter 11: Imperfect Competition and Strategic Behaviour
Chapter 12: Economic Efficiency and Public Policy
_A
Chapter 13: How Factor Markets Work
Chapter 14: Labour Markets and Income Inequality
Chapter 15: Interest Rates and the Capital Market
Chapter 16: Market Failures and Government Intervention
PP
Chapter 17: Environmental Protection
Chapter 18: Taxation and Public Expenditure
Chapter 19: Gains from International Trade
Chapter 20: Trade Policy
RO
VE
D?
?
© MEDGEEK
, CHAPTER 1: ECONOMIC ISSUES AND CONCEPTS 3
List of Boxes
Applying Economic Concepts
1-1 The High Opportunity Cost of Your University Degree 8
ST
1-2 Economics Needs the Other Social Sciences 23
2-1 Where Economists Work 32
2-2 Can Economists Design Controlled Experiments to Test Their Theories? 36
3-1 Demand and Supply Shocks Created by the COVID-19 Pandemic 66
UV
3-2 Why Apples but Not iPhones? 74
4-1 Who Really ―Pays‖ for Payroll Taxes? 95
5-1 Minimum Wages and Unemployment 107
5-2 The Debate over ―Price Gouging‖: Efficiency Versus Public Virtue 120
6-1 Rationality and Framing in Consumer Behaviour 134
IA
7-1 Is It Socially Responsible to Maximize Profits? 162
7-2 Three Examples of Diminishing Returns 171
7-3 The Digital World: When Diminishing Returns Disappear Altogether 177
8-1 Is Canada Falling Behind? 196
_A
8-2 Computers, the Internet, and the Productivity Paradox 198
9-1 Why Small Firms Are Price Takers 212
9-2 The Parable of the Seaside Inn 222
10-1 Network Effects as Entry Barriers 245
PP
13-1 Is Greater Immigration a Solution for ―Labour Shortages‖? 340
14-1 A Century of Legislated Discrimination of Indigenous Peoples 354
15-1 Inflation and Interest Rates 395
15-2 Canada’s Housing Affordability Crisis 400
16-1 The World’s Endangered Fish 416
RO
16-2 Used Cars and the Market for ―Lemons‖ 422
18-1 Using a UBI to Eliminate Poverty 486
19-1 Two Examples of Absolute and Comparative Advantage 506
19-2 Comparative Advantage and Global Supply Chains 514
VE
20-1 Tensions Between Supply Management and Freer Trade 538
Lessons from History
4-1 Economic Development and Income Elasticities 97
8-1 Jacob Viner and the Clever Draftsman 193
9-1 What Do Whaling Ships and Oil Wells Have in Common? 230
D?
10-1 Disruptive Technologies and Creative Destruction 247
12-1 Are Amazon and Facebook the Standard Oil of the Twenty-First Century? 310
13-1 David Ricardo and ―Economic Rent‖ 337
20-1 Tariff Wars and the Stark Lessons from the Great Depression 532
?
20-2 Canadian Wine: A Free-Trade Success Story 545
Copyright © 2026 Pearson Canada Inc.
, 4 CHAPTER 1: ECONOMIC ISSUES AND CONCEPTS
Extensions in Theory
3-1 The Distinction Between Stocks and Flows 55
11-1 The Prisoners’ Dilemma 278
16-1 Arthur Okun’s ―Leaky Bucket‖ 424
18-1 Who Really Pays the Corporate Income Tax? 470
ST
19-1 The Gains from Trade More Generally 504
____________________________________
UV
____
Part One
IA
What Is Economics?
____________________________________
_A
____
This opening Part of the book is an introduction to
economics. The central themes of Chapter 1 are
PP
scarcity, choice, opportunity cost, and the self-
organizing role of markets. The chapter also
examines the gains from specialization and trade,
the role of money, the effects of globalization, and
RO
ends with a discussion of the various types of
economic systems. Chapter 2 examines how economists
build their models and test their theories. It also
addresses central methodological issues, the most
important being the idea that the progress of
economics as a discipline (like all scientific
VE
disciplines) depends on relating our theories to
what we observe in the world around us. Finally, the
chapter has an extensive section on graphing.
***
D?
Chapter 1 opens with a brief tour of some key
economic issues in Canada and other countries—from
rising house prices and the dangers of climate
change to accelerating technological change and
growing income inequality. The purpose is to whet
?
the reader‘s appetite for the kinds of issues
economists are thinking about today. This offers a
Copyright © 2026 Pearson Canada Inc.
Microeconomics, 18th
ST
Canadian Edition
UV
INSTRUCTOR’S
IA
SOLUTIONS
_A
MANUAL
PP
RO
Christopher T. S. Ragan
────────────────────────────────────────────────────
Comprehensive Instructor’s Solutions
VE
Manual for Instructors and Students
||| ||| || ||| || | || ||| | || ||| |
D?
© Christopher T. S. Ragan. All rights reserved. Reproduction or
distribution without permission is prohibited.
?
© MEDGEEK
, Edrftgyihu jiuh
Microeconomics — Instructor’s Solutions Manual
Christopher T. S. Ragan
ST
Chapter 1: Economic Issues and Concepts
Chapter 2: Economic Theories, Data, and Graphs
Chapter 3: Demand, Supply, and Price
UV
Chapter 4: Elasticity
Chapter 5: Price Controls and Market Efficiency
Chapter 6: Consumer Behaviour
Chapter 7: Producers in the Short Run
Chapter 8: Producers in the Long Run
IA
Chapter 9: Competitive Markets
Chapter 10: Monopoly, Cartels, and Price Discrimination
Chapter 11: Imperfect Competition and Strategic Behaviour
Chapter 12: Economic Efficiency and Public Policy
_A
Chapter 13: How Factor Markets Work
Chapter 14: Labour Markets and Income Inequality
Chapter 15: Interest Rates and the Capital Market
Chapter 16: Market Failures and Government Intervention
PP
Chapter 17: Environmental Protection
Chapter 18: Taxation and Public Expenditure
Chapter 19: Gains from International Trade
Chapter 20: Trade Policy
RO
VE
D?
?
© MEDGEEK
, CHAPTER 1: ECONOMIC ISSUES AND CONCEPTS 3
List of Boxes
Applying Economic Concepts
1-1 The High Opportunity Cost of Your University Degree 8
ST
1-2 Economics Needs the Other Social Sciences 23
2-1 Where Economists Work 32
2-2 Can Economists Design Controlled Experiments to Test Their Theories? 36
3-1 Demand and Supply Shocks Created by the COVID-19 Pandemic 66
UV
3-2 Why Apples but Not iPhones? 74
4-1 Who Really ―Pays‖ for Payroll Taxes? 95
5-1 Minimum Wages and Unemployment 107
5-2 The Debate over ―Price Gouging‖: Efficiency Versus Public Virtue 120
6-1 Rationality and Framing in Consumer Behaviour 134
IA
7-1 Is It Socially Responsible to Maximize Profits? 162
7-2 Three Examples of Diminishing Returns 171
7-3 The Digital World: When Diminishing Returns Disappear Altogether 177
8-1 Is Canada Falling Behind? 196
_A
8-2 Computers, the Internet, and the Productivity Paradox 198
9-1 Why Small Firms Are Price Takers 212
9-2 The Parable of the Seaside Inn 222
10-1 Network Effects as Entry Barriers 245
PP
13-1 Is Greater Immigration a Solution for ―Labour Shortages‖? 340
14-1 A Century of Legislated Discrimination of Indigenous Peoples 354
15-1 Inflation and Interest Rates 395
15-2 Canada’s Housing Affordability Crisis 400
16-1 The World’s Endangered Fish 416
RO
16-2 Used Cars and the Market for ―Lemons‖ 422
18-1 Using a UBI to Eliminate Poverty 486
19-1 Two Examples of Absolute and Comparative Advantage 506
19-2 Comparative Advantage and Global Supply Chains 514
VE
20-1 Tensions Between Supply Management and Freer Trade 538
Lessons from History
4-1 Economic Development and Income Elasticities 97
8-1 Jacob Viner and the Clever Draftsman 193
9-1 What Do Whaling Ships and Oil Wells Have in Common? 230
D?
10-1 Disruptive Technologies and Creative Destruction 247
12-1 Are Amazon and Facebook the Standard Oil of the Twenty-First Century? 310
13-1 David Ricardo and ―Economic Rent‖ 337
20-1 Tariff Wars and the Stark Lessons from the Great Depression 532
?
20-2 Canadian Wine: A Free-Trade Success Story 545
Copyright © 2026 Pearson Canada Inc.
, 4 CHAPTER 1: ECONOMIC ISSUES AND CONCEPTS
Extensions in Theory
3-1 The Distinction Between Stocks and Flows 55
11-1 The Prisoners’ Dilemma 278
16-1 Arthur Okun’s ―Leaky Bucket‖ 424
18-1 Who Really Pays the Corporate Income Tax? 470
ST
19-1 The Gains from Trade More Generally 504
____________________________________
UV
____
Part One
IA
What Is Economics?
____________________________________
_A
____
This opening Part of the book is an introduction to
economics. The central themes of Chapter 1 are
PP
scarcity, choice, opportunity cost, and the self-
organizing role of markets. The chapter also
examines the gains from specialization and trade,
the role of money, the effects of globalization, and
RO
ends with a discussion of the various types of
economic systems. Chapter 2 examines how economists
build their models and test their theories. It also
addresses central methodological issues, the most
important being the idea that the progress of
economics as a discipline (like all scientific
VE
disciplines) depends on relating our theories to
what we observe in the world around us. Finally, the
chapter has an extensive section on graphing.
***
D?
Chapter 1 opens with a brief tour of some key
economic issues in Canada and other countries—from
rising house prices and the dangers of climate
change to accelerating technological change and
growing income inequality. The purpose is to whet
?
the reader‘s appetite for the kinds of issues
economists are thinking about today. This offers a
Copyright © 2026 Pearson Canada Inc.
