1. In order to ingratiate himself with voters, the mayor of Gotham City decides to lower the price of taxi rides. Assume, for simplicity, that all taxi rides are the same distance and therefore cost the same. The accompanying table shows the demand and supply schedules for taxi rides. Quantity of rides (millions per year) Quantity supplied Fare Quantity (per ride) demanded $7.00 10 12 6.50 11 11 6.00 12 10 5.50 13 5.00 14 8 4.50 15 7 b. Suppose that the mayor sets a price ceiling at $4.50. How large is the shortage of rides? Who loses and who benefits from this policy? Shortage of rides: million

1. In order to ingratiate himself with voters, the mayor of Gotham City decides to lower the price of taxi rides. Assume, for simplicity, that all taxi rides are the same distance and therefore cost the same. The accompanying table shows the demand and supply schedules for taxi rides. Quantity of rides (millions per year) Quantity supplied Fare Quantity (per ride) demanded $7.00 10 12 6.50 11 11 6.00 12 10 5.50 13 5.00 14 8 4.50 15 7 b. Suppose that the mayor sets a price ceiling at $4.50. How large is the shortage of rides? Who loses and who benefits from this policy? Shortage of rides: million

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Similar questions

please explain correctly.its my homework but can't solve.
2
6
The accompanying table shows the price and yearly quantity sold of souvenir Tshirts in the town of Silver Lake according to the average income of the tourists visiting. Price of T-shirt Quantity of T-shirts demanded when the average tourist income is $20,000 Quantity of T-shirts demanded when the average tourist income is $30,000 $43,000 5,000 $5 2,400 4,200 $6 1,600 3,000 $7 800 1,800* I a. Using the midpoint method, calculate the price elasticity of demand when the price of a T-shirt rises from $5 to $6 and the average tourist income is $20,000. Also calculate it when the average tourist income is $30,000. b. Using the midpoint method, calculate the income elasticity of demand when the price of a T-shirt is $4 and the average tourist income increases from $20,000 to $30,000. Also calculate it when the price is $7.
8. Suppose we want regular cars to be gradually replaced by electric cars. There are several kinds of government interventions that could be used to make this happen, or at least to push the car market to produce and sell more electric cars. Explain how a tax could be used for this purpose, and then explain how a subsidy could be used for this purpose.
Q13
11
The table below shows Bellamy's demand schedule for tutoring before and after winning the lottery. Use the data provided to answer two questions. Quantity Demanded (Hours per Semester) Price (per Hour) $23 20 18 15 13 10 8 5 Initial Quantity After Increase in Demanded Income 4 12 6 8 10 12 14 16 18 $ Instructions: Enter your responses as a whole number. At what price would Bellamy buy 12 hours of tutoring? a. Without a lottery win. 20 per hour b. With a lottery win. 14 16 18 20 22 24 26 35 per hour
1. Please explain what would happen to the market-clearing prices and quantities of e- cigarettes in the U.S. under the following hypothetical scenarios. a. Widespread reporting of e-cigarette or vaping use-associated lung injury (EVALI) increased the health risk concerns about vaping among existing e-cigarette users.
3.In the market for nutritional bars there are two types of consumers: men and women. Suppose that the market equilibrium happens at the same price and quantity for both the women and men's market. At the market equilibrium, the price elasticity of demand for men is ϵMD,P=−2 and the price elasticity of demand for women is ϵWD,P=−2.4. If the supply for nutritional bars is perfectly elastic and if the government implements a subsidy of $A$A in this market, we can be sure that: The increase in the consumer surplus for women will be ?? (greater tlower tequal) than the increase in the consumer surplus for men. The deadweight loss will be greater in which market? (women, men, both)
Traffic fee The graph below shows the daily demand for entry into the downtown core of a major city by commuter vehicles and shoppers' vehicles if they were required to pay a special traffic fee in order to enter. a. Draw the total demand curve. Plot only three points of the curve. 14 12 10 4 Commuters Shoppers Tools 0 6 12 18 24 30 36 42 Number of vehicles per day (tens of thousands) Total demand b. Assuming that there is no charge for entry, what is the total number of vehicles entering downtown? (Give your answers in tens of thousands of vehicles.) Quantity of vehicles: c. Suppose that government, in an effort to reduce the number of vehicles by 50 percent, decides to impose a traffic fee (the same fee for both commuters and shoppers) for entry into the downtown area. What will be the amount of the fee, and how many of each group will enter downtown? Fee: $ Number of commuter vehicles: Number of shoppers'vehicles: [ оп d. Assume that government, alternatively, decides to have a…
QUESTION 11 The number of seats available in an arena is fixed at 20,000. The equilibrium price for a ticket to a basketball game at the arena is $75. The equilibrium price for a ticket to the circus at the arena is $25. Which of the following is true? O The demand for each basketball game must be more than the demand for each circus performance. O Basketball games must be more expensive to produce than a circus performance. O The supply of circus performances must be less elastic than the supply of basketball games. O The demand for each circus performance must be greater than the demand for each basketball game.