estion 6 This figure reflects the market for outdoor concerts in a public park surrounded by residential neighbourhoods. Refer to Figure. What is the total surplus derived from the most efficient outcome? Price P₂ P₁ 0° b M C Oa+b Oa+b+c+d Oa+b+c+d+e+f Oa+b+c+e+g Social Cost Supply (Private Cost) Demand Quantity of Concerts

estion 6 This figure reflects the market for outdoor concerts in a public park surrounded by residential neighbourhoods. Refer to Figure. What is the total surplus derived from the most efficient outcome? Price P₂ P₁ 0° b M C Oa+b Oa+b+c+d Oa+b+c+d+e+f Oa+b+c+e+g Social Cost Supply (Private Cost) Demand Quantity of Concerts

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Name: Discussion day/time: Discussion Problems Week 5 Efficiency of Markets Econ 20A Introduction to Microeconomics Prof. Branch Your economic consulting firm has been hired by the Mayor of Las Vegas to provide economic analysis of the consequences of sales taxes on hotel rooms. Background: guided discussion You begin your presentation to the Mayor with some background on the efficiency of the market for hotel rooms in Las Vegas. You estimate that the supply and demand for hotel rooms are described by the following equations: Supply : Q* Demand : Qd 4P – 80 100 – 2P (a.) Graph the supply curve and the demand curve. What is the equilibrium price and quantity? (b.) Calculate (and label in the graph) consumer surplus, producer surplus, and total surplus at the equi- librium. (c.) If the Mayor decided to ban all hotel rooms in Las Vegas, who wold bear the larger burden – the buyers or sellers of broccoli? 1
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1. The graph below shows the Demand Curve and Supply Curve for a particular item (a) Label the Demand Curve and the Supply Curve. (b) Explain how you know which curve is the Demand curve and which curve is the Supply curve. (c) Label the Equilibrium Point (re. Pe) and mark z, and p, on the appropriate axes. (d) Shade and label the region whose area represents the Producer Surplus. (e) Shade and label the region whose area represents the Consumer Surplus. Show Transcribed Text S 2. The demand function for a product is p product is p²+12r+23. C and the supply function for the same (a) Sketch the graph of both the supply and demand functions (on the same axes) for 0 ≤ ≤ 10. Clearly label the axes and the curves (b) Find the equilibrium point (hint: do this with your calculator). Label the equi- librium point on your graph above. (c) Find the consumer's surplus at the equilibrium point. Show your organized work.
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PRICE (Dollars per pair) 22892852 70 63 56 49 42 35 21 14 7 0 0 7 14 21 28 35 42 49 56 63 70 QUANTITY (Thousands of pairs of loafers) Entering 36.00 into the Price of Sneakers field Entering 3.50 into the Price of Leather field Entering 7.00 into the Price field Supply Demand True False Graph Input Tool Market for Loafers Price (Dollars per pair) Demand Curve Quantity Demanded (Thousands of pairs) Surplus (Thousands of pairs) Demand Shifter Price of Sneakers (Dollars per pair) Supply Curve True or False: You can reset the entire graph by selecting outside of the tool. Green Line 14.00 56 0 Reset the graph to the initial state. Then, for each action described in the following table, indicate which elements on the graph (if any) are affected. Check all that apply. (Note: After changing the value in each field, be sure to again refresh back to the initial value before proceeding to the next row in the table.) 50.00 Quantity Supplied (Thousands of pairs) Quantity Demanded Shortage…
img' (a If po increases, what happens to the demand and supply of public transportation (shifts left/shifts right/doesn’t change) What happens to the equilibrium quantity and price for public transportation? (increase/decrease) (b)At a given price p, as oil becomes more expensive (po increases), does the (own) price elasticity of demand for public transportation increase / decrease / stay the same? (c) Calculate the cross-price elasticity of public transportation demand with respect to the oil price po, at the point p = 1 and po = 2. Are the two goods (public transportation and oil) substitutes or complements, or unrelated?
The table on the right shows the demand and supply schedules for sandwiches
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8. Total economic surplus The following graph plots the supply and demand curves in the market for VR headsets. Use the black point (plus symbol) to indicate the equilibrium price and quantity of VR headsets. Then use the green point (triangle symbol) to fill the area representing consumer surplus, and use the purple point (diamond symbol) to fill the area representing producer surplus. (?) PRICE (Dollars per headset) 350 315 280 245 210 175 140 105 70 35 0 0 Demand Supply 55 110 165 220 275 330 385 440 495 QUANTITY (Millions of headsets) Total surplus in this market is $ 550 million. + Equilibrium Consumer Surplus Producer Surplus
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2. Supply and Demand Schedules for A Gallon of Gasoline Price Quantity Supplied Quantity Demanded $4.00 $5.00 $6.00 $7.00 $8.00 6500 7000 7500 8000 8500 8000 7000 6000 5000 4000 Complete parts a, b, and c and either part d OR part e. a. Graph the supply and demand schedules in a supply curve and demand curve, respectively, on one graph. b. What are the equilibrium price and quantity? c. Show on your graph from part a and explain how the sanctions being placed upon Russia as a result of their actions in the Ukraine has affected the world market for the gallons of gasoline. Label what you did as R. d. If the government determined that the price for the gallon of gas in the marketplace should be set at $4.00, would this indicate that they were setting a price ceiling or a price floor? At this price of $4.00, how many gallons of gas will be sold