10. Assume there are 100 bee keepers raising honeybees in North Carolina. Each bee keeper has a supplycurve of qs = P/2 - 1, where quantity is measured in thousands of jars of honey. Assume market demandfor 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 andindicate 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 honeybeespollinating 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). Calculateand label the efficient quantity of honey in the market. Does the market over-produce or under-produce?Ic. Explain why it might be a good idea for the government to intervene in this market. What would bean optimal policy for them to enact and why?MacBook Air

Quantity Supplied : Qs = P/2 - 1 Quantity Demanded : Qd = 20 - 10P Equilibrium level is achieved at…

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.

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.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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