12. The following table shows the aggregate supply and demand data for a country.AggregateSupplyPriceAggregateLevelDemand20010,0004,0003009,0006,0004008,0008,0005007,0009,0006006,0009,5007005,0009,8008004,0009,900What is the equilibrium price level?(A) 200.B) 400 (C) 500 (D) 800

Answer to the question is as follows:

12. The following table shows the aggregate supply and demand data for a country. Price Aggregate Aggregate Level Demand Supply 200 10,000 4,000 300 9,000 6,000 400 8,000 8,000 500 7,000 9,000 600 6,000 9,500 700 5,000 9,800 800 4,000 9,900 What is the equilibrium price level? (A) 200.B) 400 (C) 500 (D) 800

12. The following table shows the aggregate supply and demand data for a country. Price Aggregate Aggregate Level Demand Supply 200 10,000 4,000 300 9,000 6,000 400 8,000 8,000 500 7,000 9,000 600 6,000 9,500 700 5,000 9,800 800 4,000 9,900 What is the equilibrium price level? (A) 200.B) 400 (C) 500 (D) 800

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

1. Refer to the diagram below: Price (per bushel) $10 9 8 7 6 5 4 3 2 1 0 X 2 4 8 10 12 Quantity of wheat (thousands of bushels per period) 6 (a) Suppose that the government introduced a new migration policy which has led to an increase in the number of consumers in the market. Due to this policy change, there is an increase in demand of 2,000 bushels at each price, what would be the new equilibrium price and quantity of bushels? Show the impact on the graph above and label it A. (b) Shortly after the announcement of the new immigration policy, there was a wild fire that destroyed some of the wheat harvesting plains. This led to a decrease in supply of 2,000 bushels at each price at the same time. What would be the new equilibrium price and quantity of bushels (Hint: your starting equilibrium should be A)? Show the impact on the graph above and label it B.
1-18 The equilibrium price of fertilizer has gone up. Think about the standard supply and demand framework. What curve shift could have caused the increase in price of fertilizer? A. Increase in demand B. Increase in supply
13. Application Problem Use the table to find the (a) Linear Supply equation: P = mx + b (b) Linear Demand equation: P = mx + b Prof herbert (c) The equilibrium point. This is the point where the two lines meet. Supply In millions Demand in millions Year Price $ per unit 2002 2003 340 270 2,22 370 250 | 2.72 Hint to finding solution (a) Find the slopes for demand and supply using the point (x,p) given in the table (b) Use point slope equation substituting the slope obtained and one point (x,p) to obtain the requires demand and supply equations respectively. (c) Graph the two equations, The point (x,p) the two lines meet is the equilibrium point meaning when Demand = Supply. (x,p) 14. Modeling problem Medgar Evers College bookstore sells a custom printed T-Shirt. The cost function is given as C(x) = 250 + 4.50x. (a) What is the slope in the cost function (b) Interpret the meaning of the slope in the context of this problem.
i Within the context of pricing for international markets, explain briefly what ismeant by price escalation, and list the factors that contribute to price escalation.)(ii) (Name the different approaches to reducing price escalation.)iii (What are the main factors that drive international pricing policy?
Price ($/ton) 439 400 330 300 1. Answer the following questions based on the below diagram of the U.S. steel industry. For simplicity, you may assume that the United States is a "small country" (except in part c.), and please note that the precise numbers in this question are strictly hypothetical. U.S. Steel Market 80 88 100 130 Domestic Supply Domestic Demand ¹142 50 Quantity of Steel (in Millions of tons) Refer to the graph above. Assume that the price of steel from Korea is $300 per ton and the price of steel from Brazil is $330. a. Assume the US originally placed a 33% tariff on Korean and Brazil steel. Then the US engages in a preferential trade agreement with Brazil, which removes the tariff on Brazilian steel. Will the agreement result in trade diversion or trade creation? Show the result by calculating the area of consumer surplus, producer surplus and change in government revenue.
ch QUESTION 55 P ($ per gallon) $2.20 $1.80 $1.40 $1.20 $1.00 $0.60 Excess supply or surplus O Equilibrium price is If supply is 680, price is If demand is 700, price is S --- An above-equilibrium price E - Equilibrium price A below-equilibrium price Excess demand or shortage 300 400 500 600 700 800 900 Quantity of Gasoline (millions of gallons) 113 hp