Questions 12 & 13 relate to the following graph: $ P3 ď P₂ P₁ 12 The graph best represents: 13 Ở Qo a. Negative production externality b. Positive production externality c. Negative consumption externality d. Positive consumption externality According to the graph, which price and quantity combination represents the social optimum? a. P₁, Q₁ b. P₂, Q₁ C. P₁, Qo d. P₂, Qo Social Cost A A Private Cost Demand Quantity B B D C D
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- Question 3 Person 1 can allocate her 8-hour day between the production of two goods A and B. Each hour devoted to Good B yields 2 units whereas each hour devoted to Good A produces 4 units. (a) State whether 9 units of Good B and 12 units of Good A are attainable, unattainable, efficient or inefficient /State all that applies] Select one or more attainable unattainable efficient inefficient IID A В Refer to the diagram. Assume that the horizontal axis measures the quantity of a good and the vertical axis measures the marginal-benefit and marginal cost of the good. Assuming that the good represented here has at least some positive behefits and costs, which line(s) represent(s) a possible marginal-benefit curve?PRICE (Yen per gram) 100 90 80 70 60 40 30 20 10 0 0 0 Demand + 20 40 60 80 100 120 140 160 180 200 QUANTITY (grams of uff per month) Graph Input Tool Demand for Uff Price of Uff (Yen per gram) to eat my uff this morning, but there wasn't any Quantity Demanded DEMAND SHIFTERS Average Income -(Yen per month) Price of Tulg (Yen per gram) Price of Snick (Yen per gram) Of Suppose that the price of a gram of uff decreased from 50 yen to 40 yen. This would cause a an increase in 50 100 100 20 50 Plug any value lower than the current number into the Average Income box. A decrease in average income causes a leftward the demand curve. the demand curve and therefore When the prices of tulg or snick change, there is a shift of the demand curve for uff. The directions of these changes imply that snick and uff are , and that tulg and uff are . For example, a Hermetian might say, "I went in my fridge. So instead of having uff for breakfast, I ate some
- Chloe's Demand Schedule Price ($/gallon) Quantity Demanded (gallons/year) $6 50 5 100 4 150 3 200 2 250 1 300 Chloe's willingness to pay for her 51st gallon of gasoline is....and her willingness to pay for her 301st gallon of gasoline is.... (Enter your response to the nearest penny.) This is an example ofwhich? diminishing marginal benefit decreasing total benefit decreasing demand . If you drew Chloe's demand curve, using the demand schedule above, what would you notice about Chloe's marginal benefit curve and the demand curve? The two curves would be unrelated the same .Would a research study on the effects of soft drink consumption on childrens cognitive development he a positive or normative statement?Stephen and Rebecca both enjoy drinking coffee. The marginal benefit that each places on the coffee they drink is given in the following table: Number of cups of coffee First cup Second cup Third cup Marginal Marginal Benefit Benefit for for Rebecca ($) 10 a) $9 b) $7 8 Fourth cup Fifth cup 2 c) $5 d) $3 6 4 Stephen ($) 15 12 9 6 On a recent day on campus Rebecca purchased a cup of coffee and Stephen purchased three cups of coffee. What price for a cup of coffee would be consistent with this behaviour? 3
- Positive consumption externality (below) Price of educational services H P₁ D-MPB Q₁ Quantity of educational services S-MSC D - MSB Question: 2. Draw the negative consumption externality. (Opposite of positive consumption externality) (SHOW DIAGRAMS)Only typed answer and don't use chat gpt Refer to Figure 4.1, which shows Molly's and Ryan's individual demand curves for compact discs per month. Assuming Molly and Ryan are the only consumers in the market, if the market quantity demanded is 5, the price must be A. $3. B. $6. C. $9. D. $12.Salsa (ounces) Budget constraint B A LL E U 1 D 3 5 4 2 Corn chips (bags)
- The graph contains information on candy bar consumption and production in the economy. What is the quantity that yields allocative efficiency, or the optimal allocation of Marginal benefit (MB) and marginal cost (MC) 10% MC candy bars? 9. 8. quantity of candy.bars: 3 MB SRPC 100 200 300 400 500 600 700 Quantity Classify the reasons that may contribute to the irrationability of people. May contribute to irrationality Likely does not contribute to irrationality transitivity overconfidence fairness weighing observations differently time screening reluctance to change mind signaling Answer Bank 2.of shirts Total benefit $0 1 16 31 3. 45 58 70 Reference Ref 95 (Table: Marginal Benefit of Sweatshirts) Look at the table Marginal Benefit of Sweatshirts. The marginal benefit of producing the fifth sweatshirt is: O a) $12. O b) $14. c) $70. Od) $13.A nomadic tribe in Lapland spends all its productive time hunting reindeer. Someof the reindeer meat is kept for consumption and the remainder is sold at a nearbytrading station in return for other goods. It is observed that when the price ofreindeer meat increases the amount the tribe is willing to supply decreases.(a) Sketch this situation in a diagram, with axes ‘reindeer meat’ and ‘all othergoods’. (Hint: locate the production position and sketch the consumptionopportunities line before and after the price change).(b) Determine if reindeer meat is an inferior good to the tribe?(Hint: consider what happens to the consumption position).(c) How does the analysis change if the tribe can hunt and trade fish as well as thereindeer? (Hint: now label the axes ‘reindeer meat’ and ‘fish’ and considerboth the production and consumption decisions