Q3: Consider the market for pineapples in a small island nation. Qd = 80 - 2P…………1 And Qs = 20 + 3P………...2 a. What is the market equilibrium price and quantity? b. Suppose the government imposes a per unit tax of $6 on consumers, find the new market equilibrium? ( show your answers) c. What is the tax share tolerated by each consumer and producer.

Q3: Consider the market for pineapples in a small island nation. Qd = 80 - 2P…………1 And Qs = 20 + 3P………...2 a. What is the market equilibrium price and quantity? b. Suppose the government imposes a per unit tax of $6 on consumers, find the new market equilibrium? ( show your answers) c. What is the tax share tolerated by each consumer and producer.

Name: Q3: Consider the market for pineapples in a small island nation.Qd = 8
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Description: Q3: Consider the market for pineapples in a small island nation.Qd = 80 - 2P…………1And Qs = 20 + 3P………...2a. What is the market equilibrium price and quantity?b. Suppose the government imposes a per unit tax of $6 on consumers, find the new market equi

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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In order to make a replacement decision, a firm calculated the equivalent annual cost of owning an asset as follows: EUAC Annual EUAC Replacement Capital Repair Repair Period Costs Costs Costs 1 2 3 4 5 $1,287- $1,082 $400 $189 $976 $600 $298 in 1 year $812 $800 $437 $673 $1,200 $592 When should the company replace the equipment? in 2 years O in 4 years in 5 years in 3 years
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4) Suppose a market starts in equilibrium; then we observe a decrease in supply and a decrease in demand simultaneously. What can we say about the new equilibrium? Illustrate.
2. The following data represent the demand schedule and supply schedules of a certain commodity. Based on this information, answer questions 1, 2, 3 and 4 properly. Price $9 8 7 6 5 4 quantity demanded 50 47 44 41 38 35 32 29 quantity supplied 22 26 30 34 38 42 46 50 3 2 1 26 54 1. Sketch the demand schedule and supply schedule in the same Label the equilibrium price (Pe) and the equilibrium quantity (Qe) properly. 2. Determine (tabulate) the equilibrium and equilibrium quantity. Use the surplus and shortage columns to illustrate your analysis. 3. Is a price of $7.50 an equilibrium price? If yes why and if not why not? 4. Is a price of 3.75 an equilibrium price? If yes, why and if not why not?
3) Coca-Cola: Suppose that Pepsi decreases the price of its six-packs from $3.00 to $2.50. How would this news change the demand for six-packs of Coca-Cola? a. First, graph the situation with price of Coca-Cola and quantity of Coca-Cola. Use BLACK for supply, BLUE for demand. Label supply as Sı and demand as Dj and D2. b. Using your knowledge of the laws of supply and demand, explain the shift(s) that have been made in your graph and describe what happened to the equilibrium price and quantity (3-4 bullet points), Make sure to include the 8 determinants of demand or 5 determinants of supply. Label the equilibrium points CLEARLY! c. Add a picture of Coca-Cola vs. Pepsi.
1. The demand and supply functions of beans are respectively given as 20QB +15PB-5PR=6000 and 10QB-15PB=1200. Similarly, the demand and supply of rice are Qr+Pr-PB=250 and 3Qr-7PR=710. Pɛ and PR are prices of beans and rice. QB is demand of beans and Qr is demand of rice. Find the equilibrium price and quantity of beans and rice. Are rice and beans substitute? Explain your answer.
(Table: The Lemonade Market) Use Table: The Lemonade Market. If the price of lemonade is $1.25 per cup, we expect to see a: Table: The Lemonade Market Price of Lemonade (per cup) $0.50 0.75 1.00 1.25 1.50 1.75 Number of Cups Demanded (QD) 250 200 150 100 50 20 Number of Cups Supplied (Qs) 25 50 75 100 125 150 A) rising price to eliminate the shortage. D) market in equilibrium. B) rising price to eliminate the surplus. C) falling price to eliminate the shortage.
1. Assume that the markets for sugar cane, rum and whiskey are initially in equilibrium (i.e., supply equals demand in each case). Assume further that a good harvest impacts the world’s sugar cane crop. Sugar cane is a principal ingredient in rum, but it is not an ingredient in whiskey. Rum and whiskey are substitutes in consumption. a. Discuss the impact of the good harvest on each of the three markets. b. Discuss the effect on the markets for each of the three products if the government implements a price restriction in the sugar cane market with the aim of protecting the farmers. c. How will this impact the revenues for sugar growers, rum producers and whiskey producers?
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