17. University admissionsSuppose the following graph shows the supply of and demand for admission to the University of British Columbia, where supply represents the numberof student openings and demand represents the number of students who want to attend UBC (that is, the number of student applications) at anygiven level of tuition. Use the graph to help you answer the questions that follow.Note: Select and drag one or both of the curves to the desired position. Curves will snap into position, so if you try to move a curve and it snaps backto its original position, just drag it a little farther.Admission to the University of British Columbia60Supply50Demand40Supply3020Demand10241012NUMBER OF STUDENTS (Thousands)The equilibrium level of tuition at UBC is sper academic year. If UBC sets its tuition at this price, the number of openings available willTUITION (Thousands of dollars) The equilibrium level of tuition at UBC is sper academic year. If UBC sets its tuition at this price, the number of openings available willbethe number of student applications.Now suppose that the tuition for UBC is set at $20,000. At this level of tuition, the number of student applications will bethenumber of openings available.Suppose that in its latest issue, a popular magazine publishes information about universities in Canada. The magazine declares UBC to be Canada'sbest university.Adjust the previous graph to show the effect this will have on the market for admission to UBC.The new equilibrium level of tuition at UBC is sper academic year.If the magazine declares UBC to be Canada's best university and the tuition for UBC is set at $20,000, UBC will receiveapplications for admission than there are openings.

The supply and demand for admissions to the University of British Columbia (UBC) is given, where…

Answered: The equilibrium level of tuition at UBC…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Realizing that there is a great potential for increased tax revenue, government officials in Homeyville began discussing how they could align Airbnb rentals with hotel stays from a tax perspective. Fast-forward to 2018, at which time Homeyville has finally made tax arrangements with Airbnb to levy a $40-per-room tax on rentals. However, now the market conditions have changed. More hosts have now entered the Airbnb market, and awareness of this hotel alternative has increased demand. The following graph shows the demand and supply curves for Airbnb rentals in 2018. Use the green rectangle (triangle symbols) to illustrate the area representing the revenue raised by a $40-per-room tax. Then use the black point (cross symbol) to shade the area representing the deadweight loss generated by this tax. PRICE (Dollars per rental) 200 190 180 Demand 2018 Tax Wedge 170 + 160 150 140 130 120 110 100 0 + 40 80 120 160 200 240 280 RENTALS (Rooms per day) Supply 2018 320 360 400 Tax Revenue…
The quantity of a product demanded by consumers is a function of its price. The quantity of one product demanded may also depend on the price of other products. For example, if the only chocolate shop in town (a monopoly) sells milk and dark chocolates, the price it sets for each affects the demand of the other. The quantities demanded, q, and q2, of two products depend on their prices, p, and P2, k as follows: Enter the exact answers. If one manufacturer sells both products, how should the prices be set to generate the maximum possible revenue? What is that maximum possible revenue? P₁ = P2 = H. 9₁ = 9₂ = The maximum revenue is i 280 - 5p₁-3p2 360 - 3p₁ - 5p2.
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