Maximum Actual Price Person Price Willing (Equilibrium Person To Pay Price) Minimum Acceptable Price Actual Price (Equilibrium Price) Bashir $ 17 $ 10 Chander $ 5 $ 10 Barb 14 10 Chaaya 6 10 Bill 13 10 Chuck 7 10 Beeja 12 10 Chazen 8 10 Brent 11 10 Chuma 9 10 Blessing 10 10 Chad 10 10 Instructions: 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 be enjoyed 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 orange peels impose a negative externality on the public that must be rectified by imposing a tax of $4-per-bag on sellers. What is the new equilibrium price?
Maximum Actual Price Person Price Willing (Equilibrium Person To Pay Price) Minimum Acceptable Price Actual Price (Equilibrium Price) Bashir $ 17 $ 10 Chander $ 5 $ 10 Barb 14 10 Chaaya 6 10 Bill 13 10 Chuck 7 10 Beeja 12 10 Chazen 8 10 Brent 11 10 Chuma 9 10 Blessing 10 10 Chad 10 10 Instructions: 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 be enjoyed 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 orange peels impose a negative externality on the public that must be rectified by imposing a tax of $4-per-bag on sellers. What is the new equilibrium price?
Economics Today and Tomorrow, Student Edition
1st Edition
ISBN:9780078747663
Author:McGraw-Hill
Publisher:McGraw-Hill
Chapter7: Demand And Supply
Section: Chapter Questions
Problem 20AA
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