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demand curve

demand curve

ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Homework 4 Compatibility Mode OSearch Josep ayout Mailings Review View Help Text Box References 12 -A A Aa A E E-E 三 AaBbCcl AaBbCel AaBbC AaB AoBbcct 1 Normal 1 No Spac. Heading 1 Title Subtitle b x, x A- .A EEE- E- Styles Font Paragraph 4. The three diagrams show the market for blue cod. The demand curve for cod is the same in each scenario. Scenario A represents market day; all of the fishing is done for the day, so price does not affect supply: supply is perfectly inelastic. Scenario B represents the short term, in which fishing boat captains can change a little what they do in response to a price change, but not much. Scenario C represents the market a year from now, when captains can decide to move to a different market, sell or buy boats, hire or fire crews, etc... so in Scenario C, supply is much more responsive to a price change. Scenario A Scenario B Scenario C Pe Pe Pe Focus 23 hp 144 IDI %23 & 3. 4 5. 6. 7. 8. %24
Transcribed Image Text:Homework 4 Compatibility Mode OSearch Josep ayout Mailings Review View Help Text Box References 12 -A A Aa A E E-E 三 AaBbCcl AaBbCel AaBbC AaB AoBbcct 1 Normal 1 No Spac. Heading 1 Title Subtitle b x, x A- .A EEE- E- Styles Font Paragraph 4. The three diagrams show the market for blue cod. The demand curve for cod is the same in each scenario. Scenario A represents market day; all of the fishing is done for the day, so price does not affect supply: supply is perfectly inelastic. Scenario B represents the short term, in which fishing boat captains can change a little what they do in response to a price change, but not much. Scenario C represents the market a year from now, when captains can decide to move to a different market, sell or buy boats, hire or fire crews, etc... so in Scenario C, supply is much more responsive to a price change. Scenario A Scenario B Scenario C Pe Pe Pe Focus 23 hp 144 IDI %23 & 3. 4 5. 6. 7. 8. %24
ompatibility Mode Mailings Review View Help Text Box m、前。一印一T AaBbCcl AaBbCed AaBbC AaB 1 Normal No Spac.. Heading 1 Title Paragraph Styles a. In each case, label the graphs and insert an appropriate supply curve, as described in the above paragraph. Make each supply curve go through the demand curve at the price indicated. b. The govemment imposes a tax on blue cod. Assume the buyers pay the tax directly, so show the effect of the tax by moving the demand curve down in each scenario by the exact same amount. c. Show on the graphs The price paid by buyers (including the tax) [mark it PB] The price received by sellers (excluding the tax) [mark it PS] 1. 11 d. In which scenario does the total price paid by consumers increase the least because of the tax? e. In which scenario does the total price paid by consumers increase the most because of the tax? hp
Transcribed Image Text:ompatibility Mode Mailings Review View Help Text Box m、前。一印一T AaBbCcl AaBbCed AaBbC AaB 1 Normal No Spac.. Heading 1 Title Paragraph Styles a. In each case, label the graphs and insert an appropriate supply curve, as described in the above paragraph. Make each supply curve go through the demand curve at the price indicated. b. The govemment imposes a tax on blue cod. Assume the buyers pay the tax directly, so show the effect of the tax by moving the demand curve down in each scenario by the exact same amount. c. Show on the graphs The price paid by buyers (including the tax) [mark it PB] The price received by sellers (excluding the tax) [mark it PS] 1. 11 d. In which scenario does the total price paid by consumers increase the least because of the tax? e. In which scenario does the total price paid by consumers increase the most because of the tax? hp
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