MaximumActual PriceMinimumActual PricePersonPrice Willing(EquilibriumPersonTo PayPrice)AcceptablePrice(EquilibriumPrice)Bashir$17$ 10Chander$5$ 10Barb1410Chaaya610Bill1310Chuck710Beeja1210Chazen810Brent1110Chuma910Blessing1010Chad1010Instructions: Enter your answers as a whole number.a. What are the equilibrium price and quantity for the data displayed in the two tables?bag(s)b. Instead of bags of oranges, assume that the data in the two tables deal with a good (such as fireworks displays) that can beenjoyed by free riders who do not pay for it. If all the buyers in the two tables free ride, what quantity will private sellers supply?c. Assume that we are back to talking about bags of oranges (a private good), but the government has decided that tossed orangepeels impose a negative externality on the public that must be rectified by imposing a tax of $4-per-bag on sellers. What is thenew equilibrium price?$

Understanding market equilibrium, the impact of free riders on private goods, and the effect of…

Answered: Maximum Actual Price Minimum Actual…

Microeconomics A Contemporary Intro

10th Edition

ISBN:9781285635101

Author:MCEACHERN

Publisher:MCEACHERN

Chapter4: Demand, Supply, And Markets

Section: Chapter Questions

Problem 2QFR

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al The dernand and supply schedules for wine are above. Plot both in a graph. Find the equilibrium price and quantity b) if the price of wine is currently $30, what is this situation called in the market? Plot this scenario in same graph in part (a) c) For part (b), how big is the gap between what consumers want and what suppliers want? d) What would eventually happen to price and quantity in the market in part (b)?
Show in a diagram the effect on the demand curve, the supply curve, the equilibriumprice, and the equilibrium quantity of each of the following scenarios.c. The market for blueberry muffinsi. Scenario 1: More people become health conscious and realize the highsugar content of muffins. ii. Scenario 2: The price of blueberries has increased
The diagram to the right illustrates a hypothetical demand curve representing the relationship between price (in dollars per unit) and quantity (in 1,000s of units per unit of time). AAPS you 100- The area of the triangle shown on the diagram is $ an integer.) 90- (Enter your response as 80- 70- 65 60- 50- 40- 30- 20- 15 10- D 25 0- 0. 75 70 10 20 30 40 50 60 80 90 100 Quantity (1,000s of units per unit of time) Price (dollars per unit)
QUESTION ONESuppose that a market for tomatoes is given by the following demand and supply equationsQd = 40 − 2PQs = −4 + 2PWhere Qs, Qd and P, are the quantity demanded, quantity supplied and Price for tomatoes respectively.i. Determine the equilibrium price and quantity of tomatoes.ii. On the same diagram, draw the demand and supply curve, clearly showing the intercepts, equilibrium price and equilibrium quantity.iii. Calculate the consumer surplus, producer surplus and total surplus.iv. Suppose that the government introduces a fixed tax of ZMW5 per unit of tomato.a) Calculate the new equilibrium price and quantity. b) Find the new consumer surplus, producer surplus, total surplus, and the deadweight loss?c) What is the incidence of a tax?
3. Determinants of demand The following graph shows the demand curve for sedans (for example, Toyota Camrys or Honda Accords) in New York City. For simplicity, assume that all sedans are identical and sell for the same price. Initially, the graph shows market demand under the following circumstances: Average household income is $50,000 per year, the price of a gallon of gas is $4.00 per gallon. Use the graph input tool to help you answer the following questions. You will not be graded on any changes you make to this graph. Note: Once you enter a value in a white field, the graph and any corresponding amounts in each grey field will change accordingly. Graph Input Tool Demand for Sedans Demand for Sedans 40 I Price of a sedan 15 (Thousand of dollars) Quantity Demanded 563 (Sedans per month) Demand Shifters Average Income (Thousands of dollars) 50 Demand 10 Price of Gas 4 (Dollars per gallon) 100 200 300 400 500 600 700 800 900 QUANTITY (Sedans per month) PRICE (Thousands of dollars per…
The following graph shows the demand curve for sedans (for example, Toyota Camrys or Honda Accords) in Toronto. For simplicity, assume that all sedans are identical and sell for the same price. Initially, the graph shows market demand under the following circumstances: Average household income is $50,000 per year, the price of a litre of regular unleaded gas is $4 per litre, and the price of a subway ride is $2.00. Use the graph input tool to help you answer the following questions. You will not be scored on any changes you make to this graph. Note: Once you enter a value in a white field, the graph and any corresponding amounts in each grey field will change accordingly. Graph Input Tool Demand for Sedans Demand for Sedans 40 I Price of a Sedan (Thousands of dollars) 20 Quantity Demanded 450 30 (Sedans per month) Demand Shifters Average Income (Thousands of dollars) 50 Demand Price of Gas (Dollars per litre) 4. Price of a Subway Ride (Dollars) 2 100 200 300 400 500 600 700 800 900…
Jiffy peanut butter and Smucker's Strawberry jam are considered to be complementary goods. Definitions: substitute goods, complementary goods Show how an increase in the price of Jiffy peanut butter affects the demand for Smucker's Strawberry jam. When the price of a related good changes, this will result in In particular, when the price of Jiffy peanut butter increases, the demand curve for Smucker's Strawberry jam will shift to the
What effect will each of the following have on the supply of auto tires? Microeconomics chapter 3 Supply is a schedule or curve showing the amounts of a productthat producers are willing to offer in the market at each possibleprice during a specific period. The law of supply states that otherthings equal, producers will offer more of a product at a high pricethan at a low price. Thus, the relationship between price and quantity supplied is positive or direct, and supply is graphed as anupsloping curve.The market supply curve is the horizontal summation of thesupply curves of the individual producers of the product.Changes in one or more of the determinants of supply (resource prices, production techniques, taxes or subsidies, the pricesof other goods, producer expectations, or the number of sellers inthe market) shift the supply curve of a product. A shift to the rightis an increase in supply; a shift to the left is a decrease in supply. Incontrast, a change in the price of the…
Covid-19 pandemic has affected various economic sectors around the world. Consider face mask is a normal good; there is an impact on this good due to the pandemic. Illustrate and explain the impact of the demand and supply of face mask with the help of a diagram/graph by showing the impact before the pandemic, during the pandemic and after the pandemic.
The market for packs of AA batteries during a typical week in Tulsa, Oklahoma, is described in the table below. Market for AA Batteries in a Typical Week Quantity of Quantity of Hattories Batteries Supplied (packs) 150 130 110 Price (dollars) $284 18 16 4 14 12 10 8 Price (dollars) $34 22 20 16 12 10 Instructions: Enter your answers as a whole number. a. During a typical week In Tulsa, Oklahoma, what are the equilibrium price and quantity in the market for AA batterles? P= $ Demandad (packa) 3.0 Q= packs In weeks when tornadoes threaten Tulsa, Oklahoma, the demand for packs of AA batteries increases as shown in the table below. Market for AA Batteries with Tornado Threat Now Quantity of Batteries Demanded (packs) New Quantity of Batteries Supplies (packs) 30 176 260 140 120 3 Q= 40 6 58 60 78 BO 98 100 4/ 50 60 70 108 128 90 70 58 38 10 packs b. What are the equilibrium price and quantity of AA batteries in a week with a tornado threat? P=S = packs 106 80 60 20 Suppose that city…
What effect will each of the following have on the supply of auto tires? Microeconomics chapter 3 Supply is a schedule or curve showing the amounts of a productthat producers are willing to offer in the market at each possibleprice during a specific period. The law of supply states that otherthings equal, producers will offer more of a product at a high pricethan at a low price. Thus, the relationship between price and quantity supplied is positive or direct, and supply is graphed as anupsloping curve.The market supply curve is the horizontal summation of thesupply curves of the individual producers of the product.Changes in one or more of the determinants of supply (resource prices, production techniques, taxes or subsidies, the pricesof other goods, producer expectations, or the number of sellers inthe market) shift the supply curve of a product. A shift to the rightis an increase in supply; a shift to the left is a decrease in supply. Incontrast, a change in the price of the…
A recent news story reported that OPEC is expected to decrease the supply of oil next summer. Summer is traditionally a time of increased demand for oil because of the many families driving and flying to vacation sites. What would be the combined effect of these two activities on the summer market for gasoline? Question 17Answer a. An increase in the equilibrium price and the quantity. b. An indeterminate change in both the equilibrium price and the quantity. c. An increase in the equilibrium price and an indeterminate change in the equilibrium quantity. d. An indeterminate change in the equilibrium price and a decrease in the equilibrium quantity.

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