2. Assume that the supply of imported macadamia nuts is perfectly inelastic at a quantity or100 lbs/day. The domestic supply curve (lbs/day) of macadamia nuts is 200 p where p is theprice of nuts in $/lbs.(a) Draw the supply curves for imported, domestic, and total (aggregate) supply of nuts.Clearly label each supply curve. Indicate the total (aggregate) market quantity at $0.50and $1.00.Price1.0050300400Quanty100200(b) Now FreedomIsNuts, a U.S. nut producer group, convinces congress to ban importedmacadamia nuts. Does the elasticity of total supply get larger, smaller, or stay thesame? Explain.

Price elasticity of supply refers to the responsiveness of the quantity supplied to a change in the…

Answered: Assume that the supply of imported…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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A baker will supply 17 jumbo cinnamon rolls to a cafe at a price of $3.91 each. If she is offered $3.15, then she will supply 4 fewer rolls to the cafe. The cafe's demand for jumbo cinnamon rolls is given by p = D(x) = -0.48x + 8.05. What is the equilibrium point? ___ rolls at a price of $ ___ each
Suppose the Canadian demand for and the Japanese supply of cars to Canada is shown in the table below (quantities in thousands). Quantity Supplied (before tariff) Quantity supplied (after tariff) Price ($) 13,000 14,000 15,000 16,000 17,000 18,000 19,000 20,000 Quantity Demanded 170 150 130 110 90 70 50 30 50 70 90 110 130 150 170 190 a) The present equilibrium price is $ and quantity is b) Suppose that the Canadian government imposes a $2,000 per car tariff on imported Japanese cars. Show the new supply in the last column above. thousand. thousand. c) The new equilibrium price is $ and quantity is d) The total revenue received by the government will be $ e) Assume, instead, that the government imposes an import quota of 90,000 cars. The new equilibrium price is $ quantity is thousand. f) Does the government now receive any revenue? No million. and
Note: Select and drag one or both of the curves to the desired position. Curves will snap into position, so if you try to move a curve and it snaps back to its original position, just drag it a little farther. PRICE (Dollars per box) I QUANTITY (Boxes) Supply Demand Demand If cereal is a normal good, this will cause the demand for cereal to -0 Supply ? Now suppose Congress passes a new tax that decreases the income of Philadelphia residents.
At a price of $2:29 per bushel, the supply of a certain grain is 7500 million bushels and the demand is 7600 million bushels. At a price of $2.4 per bushel, the supply is 7000 million bushels and the demand is 7500 million bushels (A) Find a price-supply equation of the form p mxb, where p is the price in dollars and x is the supply in milions of bushels (B) Find a price-demand equation of the form p mx +b, where p is the price in dollars and x is the demand in millions of bushels (C)Find the equilibrium point (D) Graph the price-supply equation, price-demand equation, and equilibrium point in the same coordinate system. (A) The price-supply equation is p (Type an exact answer) -CTD
The weekly demand for wine in the United States is described by the following equation: Qd = 45,000,000 - 1,500,000P where Qd is the weekly quatity demanded in bottles and P is the price per bottle in dollars. The weekly supply of wine in the United States is described by the following equation: Qs = -5,000,000 + 1,000,000P where Qs is the weekly quantity supplied in bottles and P is the price per bottle in dollars. a. What is the equilibrium price and quantity for wine in the US? Intense lobbying efforts result in the United States government establishing a $5 per bottle excise tax by wine producers. b. What would be the new equilibirum price and quantity after the imposition of the per bottle excise tax? c. Determine the total amount of the consumer surplus assuming the market for wine is in equilibrium after the imposition of the excise tax.
New York decides to reduce the consumption of sugary soda by imposing a minimum price of $2.50 per soda. The current equilibrium price is $1.50. Using the double arrow line tool, show the difference between the quantity supplied and quantity demanded when the market price of soda is $2.50. Properly label this difference. Carefully follow the instructions above, and only draw the required objects. Price ($) 5- 4.5- 4- 3.5- 3- 2.5+ 2+ 1.5- 1- 0.5- 0- 0 0.75 1.5 2.25 3 Quantity Supply 3.75 Excess supply Demand 4.5 Q
The demand for watches is given by p= 7000 - 2q dollars and the supply of watches is given by p = 0.01q2 + 2q + 1000 dollars where q is the number of watches demanded and supplied when the price per watch is p dollars. Based on the information provided calculate the equilibrium quantity and the equilibrium price for watches.
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Suppose products A and B have demand and supply equations that are related to each other. If q Subscript Upper AqA and q Subscript Upper BqB are the quantities produced and sold of A and B, respectively, and p Subscript Upper ApA and p Subscript Upper BpB are their respective prices, the table below shows the demand equations and the supply equations. Eliminate q Subscript Upper AqA and q Subscript Upper BqB to get the equilibrium prices. demand equations supply equations q Subscript Upper AqA equals=33minus−p Subscript Upper ApAplus+p Subscript Upper BpB q Subscript Upper AqA equals=minus−77plus+66p Subscript Upper ApAminus−22p Subscript Upper BpB q Subscript Upper BqB equals=2222plus+p Subscript Upper ApAminus−p Subscript Upper BpB q Subscript Upper BqB equals=minus−33minus−22p Subscript Upper ApAplus+66p Subscript Upper BpB Question content area bottom Part 1 The prices are p Subscript Upper ApAequals=$ enter your response…
Assume that the market demand for a product is represented by the equation P=50- and its market supply by the equation P = 10 + 2Qs where Qd and are quantity demanded and quantity supplied, respectively, and P is the market price. Determine the equilibrium market price and quantity of the product. Clearly show your steps and calculations .

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