-The Generator is a popular youth hostel in London located near Kings Cross. The hostel provides a bed, showers, and breakfast in their nightly fee. Suppose the quantity demanded is 0 when the price is $90 per night and 90 when the price is $10 per night. Quantity supplied is 0 when the price is $10 and 100 when the price is $80. a. In the accompanying diagram, use this information to place the supply and demand curves. b. In equilibrium, how many beds are rented? I Enter numeric value c. What is the total surplus? S beds

ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
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Macmillan Learning
The Generator is a popular youth hostel in London located
near Kings Cross. The hostel provides a bed, showers, and
breakfast in their nightly fee. Suppose the quantity demanded
is 0 when the price is $90 per night and 90 when the price is
$10 per night. Quantity supplied is 0 when the price is $10
and 100 when the price is $80.
a. In the accompanying diagram, use this information to
place the supply and demand curves.
b. In equilibrium, how many beds are rented?
I
Enter numeric value
100
95
90
Market for Hostel Stays
Supply
Demand
85
80
75
70
65
Price per night
60
55
50
45
40
35
30
25
20
15
10
beds
5
0
0
10
20
30 40 50 60 70
Number of beds
70
80
c. What is the total surplus?
90
90
100
Transcribed Image Text:$ Macmillan Learning The Generator is a popular youth hostel in London located near Kings Cross. The hostel provides a bed, showers, and breakfast in their nightly fee. Suppose the quantity demanded is 0 when the price is $90 per night and 90 when the price is $10 per night. Quantity supplied is 0 when the price is $10 and 100 when the price is $80. a. In the accompanying diagram, use this information to place the supply and demand curves. b. In equilibrium, how many beds are rented? I Enter numeric value 100 95 90 Market for Hostel Stays Supply Demand 85 80 75 70 65 Price per night 60 55 50 45 40 35 30 25 20 15 10 beds 5 0 0 10 20 30 40 50 60 70 Number of beds 70 80 c. What is the total surplus? 90 90 100
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