Main Content Economist, functions: In the fictional economy of Econland, where you've been hired as the Chief the market for fruit can be defined by the following demand and supply QD = 90-3P QS = 12+5P a) Solve for equilibrium price and quantity in the market for fruit in Econland (keep answers accurate to 2 decimal places). The President of Econland would like to be re-elected. As part of her re-election campaign, she aims to keep fruit prices low. She proposes 2 different policies, and asks your opinion on both. Policy 1: a price ceiling of $10 Policy 2: a price ceiling of $8 b) Solve for equilibrium price and quantity in the market for fruit under Policy 1. Is there a shortage/surplus in this market? If so, by how much? c) Solve for equilibrium price and quantity in the market for fruit under Policy 2. Is there a shortage/surplus in this market? If so, by how much?

Main Content Economist, functions: In the fictional economy of Econland, where you've been hired as the Chief the market for fruit can be defined by the following demand and supply QD = 90-3P QS = 12+5P a) Solve for equilibrium price and quantity in the market for fruit in Econland (keep answers accurate to 2 decimal places). The President of Econland would like to be re-elected. As part of her re-election campaign, she aims to keep fruit prices low. She proposes 2 different policies, and asks your opinion on both. Policy 1: a price ceiling of $10 Policy 2: a price ceiling of $8 b) Solve for equilibrium price and quantity in the market for fruit under Policy 1. Is there a shortage/surplus in this market? If so, by how much? c) Solve for equilibrium price and quantity in the market for fruit under Policy 2. Is there a shortage/surplus in this market? If so, by how much?

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Concept explainers

Risk and Uncertainty

Uncertainty refers to a situation when there is one possible outcome of a decision but where the probability of occurrence of each particular outcome is not known or cannot be estimated.

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the fictional economy of Econland, where you've been hired as the Chief
Main Content
Economist,
functions:
the market for fruit can be defined by the following demand and supply
QD = 90-3P
QS = 12+5P
a) Solve for equilibrium price and quantity in the market for fruit in Econland (keep
answers accurate to 2 decimal places).
The President of Econland would like to be re-elected. As part of her re-election
campaign, she aims to keep fruit prices low. She proposes 2 different policies, and
asks your opinion on both.
Policy 1: a price ceiling of $10
Policy 2: a price ceiling of $8
b) Solve for equilibrium price and quantity in the market for fruit under Policy 1. Is
there a shortage/surplus in this market? If so, by how much?
c) Solve for equilibrium price and quantity in the market for fruit under Policy 2. Is
there a shortage/surplus in this market? If so, by how much?

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