Consumers Producers 9 Maximum Actual Price Person Price Willing (Equilibrium Person Minimum Acceptable To Pay Price) Price Actual Price (Equilibrium Price) Bob $18 $10 Carlos $2 $10 Barb 16 10 Courtney 4 10 Bill 14 10 Chuck 6 10 Bart 12 10 Cindy 8 10 Brent 10 10 Craig 10 10 Betty 8 10 Chad 12 10 nces Instructions: Enter your answers as a whole number. a. What is the equilibrium quantity for the data displayed in the two tables? bag(s) b. Assume that we are back to talking about bags of oranges (a private good), but the government has decided that tossed orange peels impose a negative externality on the public that must be rectified by imposing a tax of $4 per bag on sellers. What is the new equilibrium price? $ What is the new equilibrium quantity? bag(s) If the new equilibrium quantity is the optimal quantity, by how many bags were oranges being overproduced before? bag(s) Help Save & E
Consumers Producers 9 Maximum Actual Price Person Price Willing (Equilibrium Person Minimum Acceptable To Pay Price) Price Actual Price (Equilibrium Price) Bob $18 $10 Carlos $2 $10 Barb 16 10 Courtney 4 10 Bill 14 10 Chuck 6 10 Bart 12 10 Cindy 8 10 Brent 10 10 Craig 10 10 Betty 8 10 Chad 12 10 nces Instructions: Enter your answers as a whole number. a. What is the equilibrium quantity for the data displayed in the two tables? bag(s) b. Assume that we are back to talking about bags of oranges (a private good), but the government has decided that tossed orange peels impose a negative externality on the public that must be rectified by imposing a tax of $4 per bag on sellers. What is the new equilibrium price? $ What is the new equilibrium quantity? bag(s) If the new equilibrium quantity is the optimal quantity, by how many bags were oranges being overproduced before? bag(s) Help Save & E
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
Related questions
Question
Transcribed Image Text:Consumers
Producers
9
Maximum
Actual Price
Person
Price Willing
(Equilibrium
Person
Minimum
Acceptable
To Pay
Price)
Price
Actual Price
(Equilibrium
Price)
Bob
$18
$10
Carlos
$2
$10
Barb
16
10
Courtney
4
10
Bill
14
10
Chuck
6
10
Bart
12
10
Cindy
8
10
Brent
10
10
Craig
10
10
Betty
8
10
Chad
12
10
nces
Instructions: Enter your answers as a whole number.
a. What is the equilibrium quantity for the data displayed in the two tables?
bag(s)
b. Assume that we are back to talking about bags of oranges (a private good), but the government has decided that tossed orange
peels impose a negative externality on the public that must be rectified by imposing a tax of $4 per bag on sellers. What is the new
equilibrium price?
$
What is the new equilibrium quantity?
bag(s)
If the new equilibrium quantity is the optimal quantity, by how many bags were oranges being overproduced before?
bag(s)
Help
Save & E
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 2 steps with 1 images
Recommended textbooks for you
Principles of Economics (12th Edition)
Economics
ISBN:
9780134078779
Author:
Karl E. Case, Ray C. Fair, Sharon E. Oster
Publisher:
PEARSON
Engineering Economy (17th Edition)
Economics
ISBN:
9780134870069
Author:
William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
Publisher:
PEARSON
Principles of Economics (12th Edition)
Economics
ISBN:
9780134078779
Author:
Karl E. Case, Ray C. Fair, Sharon E. Oster
Publisher:
PEARSON
Engineering Economy (17th Edition)
Economics
ISBN:
9780134870069
Author:
William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
Publisher:
PEARSON
Principles of Economics (MindTap Course List)
Economics
ISBN:
9781305585126
Author:
N. Gregory Mankiw
Publisher:
Cengage Learning
Managerial Economics: A Problem Solving Approach
Economics
ISBN:
9781337106665
Author:
Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher:
Cengage Learning
Managerial Economics & Business Strategy (Mcgraw-…
Economics
ISBN:
9781259290619
Author:
Michael Baye, Jeff Prince
Publisher:
McGraw-Hill Education