1. Using a supply-and-demand graph andassuming competitive markets, show andexplain the effect on equilibrium price andquantity of the following:(a) A technological change that reduces thecost of producing X-rays on the market forphysician clinic services.(b) Increased graduations of new doctors onthe market for physician services.(c) The virtual elimination of smoking in thepopulation on the market for hospital services.(d) A price ceiling placed on physician fees inthe market for physician services.

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Answered: 1. Using a supply-and-demand graph and…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Use the data and graph below to complete the following. Plot the data points onto the graph. Use all necessary labels. Suppose Miley Cyrus only charges $60 per ticket. Draw this price ceiling on the graph What is the equilibrium price and quantity in this market? Price:# # $# Quantity: If the price Miley Cyrus charges for each ticket is below equilibrium, why doesn’t she raise her prices?
1
10. Assume there are 100 bee keepers raising honeybees in North Carolina. Each bee keeper has a supply curve of qs = P/2 - 1, where quantity is measured in thousands of jars of honey. Assume market demand for honey can be represented by QD = 20 - 10P. a. What will be the price and quantity in the market? Draw a supply and demand diagram and indicate the equilibrium price and quantity while making sure to label your axes and intercepts. Now assume that each jar of honey produced generates $2 of benefit to society from the honeybees pollinating the crops and flowers at nearby farms. b. Label the MSC, MSB, MPC, and MPB curves in this market on your diagram from part (a). Calculate and label the efficient quantity of honey in the market. Does the market over-produce or under- produce? I c. Explain why it might be a good idea for the government to intervene in this market. What would be an optimal policy for them to enact and why? MacBook Air
Figure 19-6 25.00 Demand Supply 22.50 20.00 17.50 15.00 12.50 10.00 7.50 5.00 2.50 10 20 30 40 50 60 70 80 90 100 QUANTITY OF LABOR (Worker hours) Refer to Figure 19-6 . This figure depicts labor demand and supply for the widget industry. The market equilibrium wage is $15. If the minimum wage in the economy is $10, how many hours of labor will be demanded from firms in the widget industry? Оа. 10 Ob. o Ос. 60 Od. 90 WAGE
11) There are two closely related crops, X and Y, with the following demand functions QX = 180 - 2PX + PY and QY = 150 + PX - PY where QX is the quantity of X, PX is the price of X, QY is the quantity of Y, and PY is the price of Y. These two crops are grown in two widely separated countries so there is no interrelationship between the supply curves. The short-run perfectly inelastic supply for X is 150 while the short-run perfectly inelastic supply for Y is 100. In equilibrium, the prices are A) PX = 80, PY = 130 B) PX = 40, PY = 65 C) PX = 60, PY = 120 D) PX = 30, PY = 80 12) There are two closely related crops, X and Y, with the following demand functions QX = 180 - 2PX + PY and QY = 150 + PX - PY where QX is the quantity of X, PX is the price of X, QY is the quantity of Y, and PY is the price of Y. These two crops are grown in two widely separated countries so there is no interrelationship between the supply curves. The short-run perfectly inelastic supply for X is…
1. Suppose the demand curve for a product is given by Q = 300 -2P + 41, where I is average income measured in thousands of dollars. The supply curve is Q = 3P – 50. a. If I = 25, find the market-clearing price and quantity for the product.
I) The demand for petroleum is given by QD=85 − 0.4? where Q Dis the quantity demanded in thousands of barrels per day and P is the price per barrel in dollars. The supply of petroleum is given by QS=55+0.6?. Calculate the equilibrium price and quantity in this market. II) In the context of the problem in part (i), calculate the demand and supply for petroleum if the market price is $15 per barrel. What problem exists in the economy?
Answer part a, b and d only.... Quick
Please evaluate the following statements and determine which ones are true? (1) "a price ceiling above the equilibrium price of grapes will create a shortage of grapes." (1I) "a price floor below the equilibrium price of onions will create a surplus of onions." statement I is true, statement II is false statement I is false, statement II is true O both statements are true both statements are false
Consider that the retail market for sanitizing wipes in a small locale is described by the follow demand and supply equations respectively: P = 8.40 - 0.02Q and P = 6.60 + 0.01Q where P is the price in dollars and Q is the quantity measured in thousands per week. The market is currently in equilibrium. (Question 8 of 8) Now consider than an unexpected viral outbreak led to consumers ensuring that much more surfaces (counter tops, door handles, etc.) are clean and sanitized. At the same time, the government's demand for sanitizing wipes at various public institutions (hospitals, schools, etc.) has impacted the supply of sanitizing wipes in the retail market. Although the government is neither a buyer nor seller in the retail market, their requests for sanitizing wipes does affect how many sanitizing wipes firms are able to supply in the retail market. The market for sanitizing wipes adjusts afterwards and the market is in equilibrium. Suppose that after the market for sanitizing wipes…
part D
Please refer to the background information below to answer the following three questions. Consider the following supply and demand schedule of chocolate. Price ($ per unit) Quantity Demanded (units) Quantity Supplied (units) 295 95 120 40 45 270 245 50 55 60 145 170 195 220 195 65 70 170 220 145 245 75 120 95 270 295 80 85 70 320 90 45 20 345 95 370 33. Suppose initially the chocolate market is in an unregulated equilibrium. If the government imposes a tax of $10 for cach unit of the chocolate sold, the new equilibrium price paid by the consumers will be $[ Answer33 ]. 34. Given the above information, the government's tax revenue will be $[ Answer34 ]. 35. Suppose initially the chocolate market is in an unregulated equilibrium. If the government imposes a subsidy of $10 for each unit of the chocolate sold, the new equilibrium quantity would be [ Answer35 ] units.

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