Many users were left aghast when, for the first time ever, Spotify announced they are raising subscription prices. The Premium Family Plan is rising from $14.99 to $15.99 a month. Source: techradar.com, May 2, 2021 Assume that the marginal social cost of streaming is zero. (This assumption means that the cost of operating a streaming service doesn't change if more people stream more songs.) Also assume the market demand is linear. (1) Draw a graph of the market for streaming music with a price of $15 a month. On your graph, show consumer surplus and producer surplus. (2) With a price of $15 a month, is the market efficient or inefficient? If it is inefficient, show the deadweight loss on your graph. (upload your graph)

John and Michael are the only consumers in a town that is planning on putting on a fireworks display. The graph below shows John and Michael's demand curves for a fireworks display. Based on the information given in the graph manipulate the blue line segment to reflect the overall demand for the fireworks display. Cost ($) 12 11 10 9 00 8 7 50 4 3 2 1 John's Demand Quantity Demand Michael's Demand 2 3 What kind of good is a fireworks display? Quasi-public good Private good Public good Common resource

Cayden Roa owns the Red Deer Pythons. A professional Soccer team Each time the team plays in Pythons Stadium it costs Cayden $111.000 for rent, staffing, stadium preparation, etc: Cursent ticket prices for a Pythons home game are $17 per ticket, and an average game draws 6150 fans which is only 41% the Stadium's capacity. Since Cayden studied economics he knows that the market for Soccer games in Red Deer is not at equilibrium Tok Pr 264 14- 12- 4000 5000 7200 6400 Number of Tickets Sold Q Q C USE CHART ABOVE AND TABLE BELOW TO ANSWER FOLLOWING QUESTIONS (3 Points) What is the Equilboum Price? What is the Equilbrum Quantity 201 What needs to occur for equilibrium to be reachediefer to question for current situation?

Image the social demand function for a commodity takes the following form: Q = 400 – 10p • Please graph the social demand curve (i.e., WTP curve) for this commodity. Label accordingly. What is the WTP for the 10 unit of output? For the 50 unit? How much overall benefit does society get for consuming 50 units? • How does consumer surplus change if prices fall from $16 to $14? Please show all of your work, including the formulas discussed in class.

In competitive markets, we know that: P = MWTP P = MC MC = AC %3D P = Min AC Which result(s) implies that the outcome is socially optimal? Briefly explain.

The August 30, 2019 issue of the Wall Street Journal had a story "Ravenous China Could Spice Up U.S. Meat Stocks" about the devastating effects of the outbreak of African swine fever. You do not need to read the story, this paragraph from the article tells you all you need to know: "By July, the number of hogs in China - by far the world's largest pork consumer - was close to a third lower than a year earlier, according to official statistics. And the situation may be even worse than headline figures imply: A June report from Reuters suggested that as many as half of China's breeding pigs may have died or been slaughtered." Graphically depict the market for hogs in China, assuming that the demand curve slopes down and the supply curve slopes up. This is purely an analysis of the impact of African swine fever. It is true that trade wars between the U.S. and China are significant, but for this analysis, we are just looking for the impact of the deadly swine fever independent of any other…

Imagine that you are buying Lego bricks. The number of bricks you are willing to buy is determined by the market price of bricks. Your willingness to buy is defined by the following: You are willing to buy 1 brick if the price is at or below $30 You are willing to buy 2 bricks if the price is at or below $25 You are willing to buy 3 bricks if the price is at or below $20 You are willing to buy 4 bricks if the price is at or below $15 What is your consumer surplus if the market price of bricks is $23? Assume that there are enough sellers available to sell as many as you want to buy at that price. Enter the number below. Do not include the “$” sign.

What is an example of a change in equilibrium? Explain the change and provide a graph

The government of Freeland is considering introducing a carbon tax to tackle global warming. They have asked for your help in analyzing the impact. They give you the following information. The average person in Freeland eans €30 a week. She spends it on a carbon good and on all other goods. Her preferences satisfy the usual assumptions of consumer choice theory. The carbon good currently costs €2 a unit and the average person buys 5 units of a carbon good per week. The government is considering putting a tax of €1 on carbon and giving a transfer of €5 to the average person to compensate her for the price increase. Will this proposal make the average consumer better off, worse off or the same as they were before the proposal? Explain clearly. Will this proposal lead to any change in the amount of the carbon good bought by the average consumer? Explain clearly.

Economics