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

See similar textbooks

Similar questions

How can I solve task 9?
Equilibrium Scenarios On a separate piece of paper, use an appropriately labeled supply/demand graph to answer the following questions. For each question, you need to a) state the determinant of demand (TRIPE)/supply (NICEJAG) that caused the change, b) graph the change, and c) tell me what happens to equilibrium price and quantity. 1. What would be the effect of an increase in automobile worker wages on the market for automobiles? 2. What would be the effect of a decline in the price of personal computers on the market for software? 3. What would be the effect of an increase in the price of Budweiser beer on the market for Coors beer? 4. What would be the effect of a governmental subsidy on the market for AIDS research? 5. What would be the effect of a decline in the price of irrigation equipment on the market for corn? 6. What would be the effect of the government subsidizing the growers of watermelons on the market for watermelons? 7. What would be the effect on the market for Big…
You are a financial analyst with a specialization in the motion pictureIndustry. You have been hired to analyze the prices of movie theater tickets. The following two events are occurring simultaneously in the Ghana:A new national chain opens new multi-screen movie theaters in most cities in Ghana.Movie theaters cut the price of popcorn and soft drinks in half.Draw a demand-and-supply graph showing equilibrium in the market for movie tickets hefore the above two events took place. Label the axes and curves. Label the initial equilibrium — before events (i) and (ii) - as P,and Q, on your graph.b.Now show on your graph how event (i) affects the demand or supply curves for tone teres, Brelly explain which of the demand or supply variables caused the eftect you are showing on your graph.Now slow on your graph how event (il) affects the demand or supply curves for ovis Lesets. Brielly explain which of the demand or supply variables caused the effe you are showing on your graph.Based on your…
The “A” index is a proxy for the world price of cotton. From January 2010 to October of 2010, the price reflected by the “A” index increased about 80%. a) Provide two separate explanations for this price increase using shifts in supply or demand.b) What one piece of information would allow you to decide which of the two is a better explanation?
Question 1 (12 marks) This question is based on the following cartoon: Maximum word count: 100 words Recartoons que Just why is petrol so expensive? SUPPLY DEMAND (i) What word/words will an economist use to describe the market condition depicted in the cartoon (ii) Draw a diagram of the market for petrol that illustrates the market condition depicted in the cartoon. (ii) Explain the adjustment process to the new equilibrium position in the market for petrol.
Question: What happens to equilibrium price and quantity in a market when there is an increase in both supply and demand? A) Equilibrium price decreases, equilibrium quantity increases B) Equilibrium price increases, equilibrium quantity decreases C) Equilibrium price and quantity both increase D) Equilibrium price and quantity both decrease
Question 24 (1 point) Which of these is an example of a price floor? an equilibrium price a minimum wage law a law setting the highest price that can legally be charged for toilet paper. a law setting the maximum price that can be charged equal to the marginal cost. none of these choices.
7
Question 42 Using a conventional demand and supply framework, answer the following question. Both demand and supply decrease, but demand decreases less than supply. Then the new equilibrium point of the old equilibrium point, the equilibrium price and the equilibrium lies to the quantity (Hint: Draw the graph with the shifts and the directional arrows as we did in class. Do not forget labelling.) bottom right, decreases, decreases bottom left, decreases, decreases top right, increases, decreases. top left, increases, decreases