Suppose the economy of Apple Republic is represented by the following equations:Z = C +|+ GC = 500 + .5YDT= 600|= 300YD = Y - TG = 2000(Enter number only into the boxes)a. Given the above variables, calculate the equilibrium level of output (Y)disposable income (Yp)and consumption (C)Hint: First specify (using the above numbers) the demand equation (Z) for this economy. Second, using the equilibrium condition, equate this expression with Y. Onceyou have done this, solve for the equilibrium level of output (Y). Third, once you get Y, you can T from Y to get Yp. Finally, once you get Yp, you substitute it into theconsumption equation to get consumption (C).b. Now, assume that government spending decreases from 2000 to 1900. What is the new equilibrium level of output (Y)? What is the multiplierfor this economyc. Now, assume that G is still at 2000, but taxes increase from 600 to 700. What is the new equilibrium level of output (Y)? What is the multiplierfor this economyd. Now, assume that G=2000 and T=600, but consumer confidence decreases causing a reduction in autonomous consumption (co) from 500 to 400. What is the newequilibrium level of output (Y)? What is the multiplier for this economy

Given C=500+0.5Yd T=600 I=300 Y0=Y-T G=2000 GDP= C + I + G calculate all the term which are given…

Answered: Suppose the economy of Apple Republic…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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###PLEASE CHECK IMAGE FOR CORRECT EQUATION In class, we estimated the per-capita demand function for watermelons (in natural logs) to be????? = ―3.7 ― 1.02???? + 1.6????? ― 0.75?????where P is the price of watermelon ?? is per capita income, and ?? is the freight price. Suppose the natural log of the supply curve is given by ????? = 1.2 + 0.6????.Please answer both of these: 1) What is the cross-price elasticity of freight and what does it say about whether freight is a complement or substitute? What is the income elasticity of watermelon demand and what does it say about whether watermelon is an inferior versus normal or luxury good? 2) Hold the per capita income and freight prices equal to their sample means: 800 and 16, respectively. What is the equilibrium price and quantity?
Q3 7. Suppose the United States economy is represented by the following equations: C = 300 + SYDT= 4001 = 200 G = 1000 Z=C+1+G Yp = Y -T a. Given the above variables, calculate the equilibrium le vel of output. Hint: Pirst specify (using the above numbers) the demand cquation (Z) for this economny. Šecond, using the equilibrium condition, equate this expression with Y. Once you have done this, solve for the equilibrium level of output. Using the ZZ-Y grapth (i.e., a graph that includes the ZZ line and 45-degree line with Z on ihe vertical axis, and Y on the horizontal axis), illustrate the equilibrium level of output for this economy. b. Now, assunic that consumer confidence increases cuusing an increase in autonomous consumption (co) fron 300 to 400. What is the new equilibrium tevel of output? How much does income change as a result of this event? What is the nultiplier for this economy? c. Graphically illustrate (in the above graph) the effects of this change in autonomous…
Calculate equilibrium price and equilibrium quantity and fill the following column Qd = 1,400 – 10P Os = -400 + 20P Os2 = -400 – 10P Os3 = -400 – 15P e. Table – 3 Šupply = 1,400 – 10P -400 + 20P Supply2 = -400 + 10P Supply3 = 400 + 30P Price Demand = 0. 20 40 60 80 100 120 140 160 Draw the three supple functions and one demand curves according to the estimation in the table-3 and point out equilibrium levels f. 160 140 120 100 80 60 40 20 600 700 800 900 1000 1100 1200 400 500
Part 1: Spatial Equilibrium The demand in market 1 is D₁ = 24 - P₁ The supply in market 1 is S₁ = -2 + P₁ The demand in market 2 is D₂ = 16 - P2 1. Name: The supply in market 2 is S₂ = 2 + P₂ If no trade occurs between the markets, what are the equilibrium values of D1, S1, P1, D2, S2, and P2? Solve algebraically. 2. AG BM 102 Lesson 11 Homework 3. If the cost of transportation between the two markets is PT = 2, what would be the equilibrium values of D₁, S₁, P1, D2, S2, P2, QT, and PT? Solve algebraically. Show the above situation graphically, both with and without trade. Please label everything. [Insert an image of your graph here] Part 2: Storage Equilibrium Assume that the market supply curve for potatoes is Qs₁ = 12 + 0.5P, and that there are two marketing periods for the crop. In the first marketing period the demand curve is: QD1 = 24-P₁, in the second period it is: QD2= 18 - P2. 1. Draw a graph of the markets in the two periods showing prices and quantities if it costs nothing…
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Suppose that the demand and supply curves for good X are: QD = 75 − 1.25P and QS = −60 + 2.50P A: Algebraically solve for the market equilibrium price and quantity, neatly showing your work. B: Neatly construct a graph and plot the demand curve, carefully showing the horizontal andvertical intercepts. On the same graph, neatly plot the supply curve, showing an intercept. Label theequilibrium.
Q. The example uses the following data for 2007 : PG = wholesale price of natural gas ($ per 1000 %3D cubic feet) PO = average price of a barrel of crude oil = $50, Production and consumption of natural gas were 23 trillion cubic feet, Supply of Natural Gas (trillion of cubic feet): QS = 15.90 + 0.72PG + 0.05PO Demand for Natural Gas (trillion of cubic feet) QD = 0.02 – 1.8 PG + 0.69PO a. Find the equilibrium price for natural gas b. Suppose the regulated price of gas were $7.00 per thousand cubic feet instead of $3.0O. How much excess demand or supply would there have been?
Match the Determinants with the appropriate change in the market for chocolate.
Your company sells wristwatches in three separate markets: China, Japan and Korea. The demand curves are 9c = 50 9j = 75 - - qk 100 4 2 Pc P₁ · Pk. a) Calculate and plot the inverse demand curve for each market. b) Calculate your aggregate demand curve. c) Calculate and plot your inverse aggregate demand curve.
Step3, part b of the question: it asks for equilibrium level of C. If formula for C is C= 1000+ 0.8Yd, then since at equilibrium Y=7000 shouldn't C be equal to C= 1000 + 0.8(7000-350) = 6320? If so, than the last part of the question regarding S should be 7000-6320= 680 Please let me know where I am wrong
5. Recall the supply and demand example from notebook 1. p= 2q + 10 p= 30-q Express this system as a matrix equation using Markdown and solve using the inverse function in Numpy. Now, shift the demand curve 5 units to the right. Solve for the new equilibrium and graph using the econplot function from notebook 1.
Price si S2 C D2 D1 Quantity Which of the following would result in equilibrium shifting from point C to point A?

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