Suppose that the following graph shows a free market equilibrium, with QE as the equilibrium quantity. Supply Demand QUANTITY For an output level exactly at Qe, the value of a unit to a buyer is the cost of a unit to a seller. Suppose a firm that produces for this market is able to dump toxic chemicals into a river next to its factory, which poisons wildlife and harms the health of nearby residents who have no business with the company. This scenario is characterized by , which is an example of PRICE

Suppose that the following graph shows a free market equilibrium, with QE as the equilibrium quantity. Supply Demand QUANTITY For an output level exactly at Qe, the value of a unit to a buyer is the cost of a unit to a seller. Suppose a firm that produces for this market is able to dump toxic chemicals into a river next to its factory, which poisons wildlife and harms the health of nearby residents who have no business with the company. This scenario is characterized by , which is an example of PRICE

MACROECONOMICS FOR TODAY

10th Edition

ISBN:9781337613057

Author:Tucker

Publisher:Tucker

Chapter4: Markets In Action

Section: Chapter Questions

Problem 18SQ

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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
i need help with this macroecon question 6
1) In the market for smart phones, explain how will thefollowing statement impact the equilibrium price andquantity?Average incomes increase and new technology improvesproductive efficiency(Make sure that you also consider the effect on demandand supply curves where appropriate)
Consider that the new more eco-friendly coal briquettes for heating stove fire costs 3,750₮ per bag of 25kg. Yet the same amount of raw unprocessed coal costs 2,000₮ for about the same 25kg bag. As you can imagine people will keep buying the cheaper raw coal for the winter cold months. a. Please draw side-by side the supply and demand diagrams of a Raw coal and New processed coal bags. Mark all the necessary points and units that we normally mark. b. What kind of an externality would you say this RAW coal has and how would it impact the bystanders?c. We can't precisely measure the cost of the actual externality from raw coal, but we can almost certainly assume that at least the amount of price difference is the externality cost. What would you recommend the government do to improve the situation? Show it on the graph and mark to clearly suggest your solution.
Assume that you are in the business of building houses in United Kingdom. You have analyzedthe market carefully, and you know that at a price of £120,000, you will sell 800 houses peryear. In addition, you know that at any price above £120,000, no one will buy your housesbecause the government provides equal-quality houses to anyone who wants one at £120,000.You also know that for every £20,000 you lower your price, you will be able to sell an additional200 units. For example, at a price of £100,000, you can sell 1,000 houses; at a price of £80,000,you can sell 1,200 houses; and so on.a. Sketch the demand curve that your firm faces.b. Sketch the effective marginal revenue curve that your firm faces.c. If the marginal cost of building a house is £100,000, how many will you build and whatprice will you charge? What if MC = £85,000?
a) Which of the following is typically not used to evaluate economic policy? O Stability O Economic growth O Kosher-Index O Equity b) Consider following demand and supply function for a market: D: P-280-2Q: S: P=30+8Q. The market equilibrium quantity is Q-45 Q = 55 Q-35 Q-25 c) Consider the market for wheat, which currently is in equilibrium. Covid-19 related social distancing requirements make production more expensive. This will lead to O An increase in equilibrium price and quantity O A decrease in equilibrium price and an increase in equilibrium quantity O An increase in equilibrium price and a decrease in equilibrium quantity O A decrease in equilibrium price and quantity
The demand for corn (measured in billions of bushels) is given by Con = 5 - 2Pom + 4Ppotutoes - 0.25Putter + 0.0003M. The supply of corn is given by O=9+ 5Pun - 2Puet -1.25Pybeans a. If potatoes cost $0.75 per pound, butter costs $8.00 per pound, diesel fuel costs $3.00 per gallon, soybeans cost $16.00 per bushel, and average income, M, is $40,000 per year, what is the equilibrium price of corn as determined by the demand and supply functions? Instructions: Round your answer to 1 decimal place, b. How much corn is bought and sold (equilibrium quantity? Instructions: Round your answer to 1 decimal place. Obillion bushels. c. If the price of diesel fuel increases to $4.50 per gallon, what is the new equilibrium price? Instructions: Round your answers to 2 decimal places. If the price of diesel fuel increases to $4.50 per gallon, what is the new equilibrium quantity? billion bushels,
7. There is a road named High Street with 800m long. There are two grocery shops: Woolworths located at the left end and Coles located at the right end. 4800 customers are uniformly distributed along High Street. To make our life easier, assume both grocery stores sell the same product, and consumers demand just one unit of the product. Traveling to a grocery shop is costly, and the cost of traveling is 4 cents per meter. Suppose the price of the product is $10 at Woolworths, and $12 at Coles. Then customers will purchase the product from Woolworths.
The graph below shows the market for ground coffee in Moncton. Price per kilo 28 24 20 16 12 0 200 400 600 800 1000 2001 4001 6001 8002000 Kilos per day O 0 a) What would be the new equilibrium price if both the demand and supply of ground coffee increased by 400 kilos per day? $ b) What would be the new equilibrium price if both the demand and supply of ground coffee decreased by 400 kilos per day?
Consider the following market for a crop: Demand: Qd = a-bP = 18-0.5P Supply: Qs = c+dP = -2+0.5P Then Add: Crop is larger and supply is now Qs = 4 + 0.5P Is my graph correct?
obs e Edmodo 352 Itachi HD Wallp.. Pinterest Oxford Equilibrium condition for three market is given by 6P- P, 4P, = 16 -2P + 4P,- P, 27 P P, +3P, 14. - What is the equilibrium price for each market? O a P 17.33, P, 19.66, P,= 17 Ob P 23.65, P, 23.68, P 20.44 Oc. P 17.22, P, 19.6, P 16.94 O d. P 7.53, P 13.43, P 11.65 6 of 7
Suppose that in the rice market demand shifts greatly due to a new rice diet that is being marketed heavily in the U.S. as a cure for cancer. Simultaneously the supply curve shifts slightly due to a healthy rainy season that positively affects the rice crop in California. What is the most likely outcome in this situation? equilibrium price and quantity decreases O equilibrium price increases and quantity decreases equilibrium price decreases and quantity increases equilibrium price and quantity increases