Figure 4.6Price$96x4,0008,000Supply12,000DemandQuantityRefer to Figure 4.6. The figure above represents the market for pecans. Assume that this is a competitive market. Ata price of $9,O A. consumers' willingness to pay is greater than producers' willingness to sell, therefore, output produced isinefficiently low.B. the marginal cost of pecans is greater than the marginal benefit; therefore, output is inefficiently low.C. producers should lower the price to $3 in order to sell the quantity demanded of 4,000.D. the marginal benefit of pecans is greater than the marginal cost; therefore, output is inefficiently low.O E. the marginal benefit of pecans is greater than the marginal cost; therefore, output is inefficiently high.

Option A: Consumers' willingness to pay is greater than producers' willingness to sell; therefore,…

Answered: Figure 4.6 Price $9 6 x 4,000 8,000…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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3. In most cases, a supply curve has a shape that we call "upward sloping". This means that it looks like a diagonal line going from the bottom left to the top right of a market graph. Why does supply usually have this shape? Explain in your own words. Make sure to include the concept of marginal cost in your explanation.
2. Ralph opened a small shop selling bags of trail mix. The price of the mix $5 and the market for trail mix is very competitive. Ralph's curves are shown in the figure bellow. Price $8 7 6 5 2 MC AC 2 4 6 8 10 12 14 16 18 20 22 24 Quantity a. At what quantity will Ralph produce? Why? b. When the price is $5, shade the area of profit or loss in the graph provided and calculate Ralph's profit or loss (round up).__ c. If all other sellers of trail mix have the same marginal and average costs as Ralph, should he expect more or less competition in future? In the long run, will the price of trail mix rise or fall? What will be the price of trail mix in the long run? Price will rise/fall in the LR. Price in the LR will be $
c. Suppose that the demand for Molly's product increased by three units at every price level. Complete the table below. Total Revenue Marginal Cost Quantity per Period Price $30 30 29 28 27 26 25 24 22 20 $ Marginal Revenue $ $ Total Cost $ d. What will be her new profit-maximizing output and price, and what will be the amount of her profit? Output: Price: $ Profit: $
QUESTION 1 When there is a technological advance in the cheese industry, consumer surplus in that market will Ⓒ a not change, since technology affects producers and not consumers. Ob. Increase. O c.not change, since consumers' willingness to pay is unaffected by the technological advance. Od. Decrease.
Question 21
Question 10 Plastic is a key component in the manufacture of children's dolls. A new technology is de- veloped that allows soybeans to be used to make the plastics at a fraction of the price. What will happen to the supply curve for children's dolls? A B C D It will remain the same, but manufacturers will charge less for the dolls. It will shift to the left, as dolls will no longer offer an acceptable profit to stay in business. It will remain the same, but manufacturers will charge more for the dolls. It will shift to the right, as manufacturers will seek additional profits because of the fall- ing costs of production. ó ó ó ó ó ó ó f 23 Total Questions Answered o o o o o o o All Changes Saved * < Contin 9
7. Notepads and pens can be considered to be complements. Woodchips are an input to notepads, and plastic is an input to pens. Assume markets for notepads, pens, woodchips and plastic, are all perfectly competitive. Suppose that the equilibrium price of notepads increases, and the equilibrium price of pens decrease. Which of the following could explain these changes? a) A decrease in the supply of plastic b) An increase in the demand for wood chips c) An increase in the demand for plastic d) An increase in the supply of plastic e) Either (b) or (d)
Figure 7-4 Price P₂ P₁ o с D 9₂ B E 82 Quantity Refer to Figure 7-4. What will NOT occur when the price falls from P2 to P1? a. The total quantity sold in the market increases. b. The sellers who still sell the good are worse off because they now receive less. OC. The total cost of what is now sold by sellers is actually higher. X d. Producer surplus would fall by area A + B.
I want the solutions for microeconomics
Have to pick what will happen in each scenario from the list
7. A shift in the supply curve of bicycles resulting from higher metal prices will lead to higher prices lower prices a shift in the demand curve larger output a. b C. d.
3. Demand and supply of cigarettes in California are: Supply: Qs = 2Ps + 20 Demand: QD = 200 – PD Calculate the market equilibrium price and quantity, assuming perfect competition. a. b. California decides to tax on cigarettes to fund preschool. It recognizes that a secondary benefit of the tax would be to reduce teen smoking. Suppose taxes of $15 per carton are placed on the consumption of cigarettes. By how much will the tax increase the price consumers pay? By how much will it decrease the price producers receive?

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