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Refer to the two tables below, which show, respectively, the willingness to pay and the willingness to accept of buyers and sellers of individual bags of oranges. For the following questions, assume that the equilibrium price and quantity depend on the following changes in supply and demand. Also assume that the only market participants are those listed by name in the two tables. Consumers Producers Actual Price Maximum Price Willing To Pay Actual Price (Equilibrium Price) Minimum Acceptable Price Person (Equilibrium Price) Person Bob $21 $10 Carlos $2 $10 Barb 16 10 Courtney 4 10 Bill 14 10 Chuck 6 10 Bart 12 10 Cindy 8 10 Brent 10 10 Craig 10 10 Betty 8 10 Chad 12 10

Refer to the two tables below, which show, respectively, the willingness to pay and the willingness to accept of buyers and sellers of individual bags of oranges. For the following questions, assume that the equilibrium price and quantity depend on the following changes in supply and demand. Also assume that the only market participants are those listed by name in the two tables. Consumers Producers Actual Price Maximum Price Willing To Pay Actual Price (Equilibrium Price) Minimum Acceptable Price Person (Equilibrium Price) Person Bob $21 $10 Carlos $2 $10 Barb 16 10 Courtney 4 10 Bill 14 10 Chuck 6 10 Bart 12 10 Cindy 8 10 Brent 10 10 Craig 10 10 Betty 8 10 Chad 12 10

ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Instructions: Enter your answers as a whole number. a. What is the equilibrium quantity for the data displayed in the two tables? bag(s) b. 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 $8 per bag on sellers. What is the new equilibrium price? 16 What is the new equilibrium quantity? bag(s) If the new equilibrium quantity is the optimal quantity, by how many bags were oranges being overproduced before? 2 bag(s)
Transcribed Image Text:Instructions: Enter your answers as a whole number. a. What is the equilibrium quantity for the data displayed in the two tables? bag(s) b. 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 $8 per bag on sellers. What is the new equilibrium price? 16 What is the new equilibrium quantity? bag(s) If the new equilibrium quantity is the optimal quantity, by how many bags were oranges being overproduced before? 2 bag(s)
Refer to the two tables below, which show, respectively, the willingness to pay and the willingness to accept of buyers and sellers of individual bags of oranges. For the following questions, assume that the equilibrium price and quantity depend on the following changes in supply and demand. Also assume that the only market participants are those listed by name in the two tables. Consumers Producers Maximum Actual Price Minimum Actual Price Price Willing To Pay Person Аcсeptable (Equilibrium Price) Person (Equilibrium Price) Price Bob $21 $10 Carlos $2 $10 Barb 16 10 Courtney 4 10 Bill 14 10 Chuck 6. 10 Bart 12 10 Cindy 8 10 Brent 10 10 Craig 10 10 Betty 8 10 Chad 12 10
Transcribed Image Text:Refer to the two tables below, which show, respectively, the willingness to pay and the willingness to accept of buyers and sellers of individual bags of oranges. For the following questions, assume that the equilibrium price and quantity depend on the following changes in supply and demand. Also assume that the only market participants are those listed by name in the two tables. Consumers Producers Maximum Actual Price Minimum Actual Price Price Willing To Pay Person Аcсeptable (Equilibrium Price) Person (Equilibrium Price) Price Bob $21 $10 Carlos $2 $10 Barb 16 10 Courtney 4 10 Bill 14 10 Chuck 6. 10 Bart 12 10 Cindy 8 10 Brent 10 10 Craig 10 10 Betty 8 10 Chad 12 10
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A consumer buys a good when its maximum willingness to pay is greater than or equal to the market price, while a producer sells a good when it minimum willingness to accept is less than or equal to the market price. 

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