The graph below shows the short- and long-run supply (Ssr, Slr) and demand (Dsr, Dlr) curves for water in a metropolitan water district. The price ceiling, Pceil, is currently set to be nonbinding. Adjust the ceiling by repositioning the Pceil line to a price that leads to a short- run shortage of 2.1 million cubic feet per month. To refer to the graphing tutorial for this question type, please click here. B Price ($ per 100 cubic foot) 7.5 7 6.5 6 5.5 5 4.5 4 3.5 3 2.5 2 1.5 1 0.5 0 2.8 S B 1 24 28 B 23 f 8 4244 & O % 3 Ssi Sir $ Dar Pceil Dir B &

The graph below shows the short- and long-run supply (Ssr, Slr) and demand (Dsr, Dlr) curves for water in a metropolitan water district. The price ceiling, Pceil, is currently set to be nonbinding. Adjust the ceiling by repositioning the Pceil line to a price that leads to a short- run shortage of 2.1 million cubic feet per month. To refer to the graphing tutorial for this question type, please click here. B Price ($ per 100 cubic foot) 7.5 7 6.5 6 5.5 5 4.5 4 3.5 3 2.5 2 1.5 1 0.5 0 2.8 S B 1 24 28 B 23 f 8 4244 & O % 3 Ssi Sir $ Dar Pceil Dir B &

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 answer part d
The demand for product X depends on the price of product X as well as the average household income (Y) according to the following relationship Qdx=800-5P+0.001Y The supply of product X is positively related to own price of product X and negatively dependent upon W, the price of some input. This relationship is expressed as: Qsx= 100+ 45 P-4 W Given that Y = 50,000 and W= 4, what is the 1. Equilibrium price? Number 2. Equilibrium quantity? Number Suppose that income increases to 60,000 and W remains constant. What is the new: 3. Equilibrium price? Number 4. Equilibrium quantity? Number Assuming that income remains constant at 60,000 and W increases to 9, what is the new: 5: Equilibrium price? Number 6. Equilibrium quantity? Number
A city water district wants to encourage local businesses and homeowners to landscape with drought-tolerant plants. After disappointing results from a publicity campaign, the water district decides to subsidize local plant nurseries so they can offer the plants at a lower price. Suppose the graph shows the supply and demand curves for a drought tolerant plant, such as purple sage. Drag the appropriate curve to show the impact of the water district subsidy.
Consider the competitive market for production of a chemical as shown in the diagram below. This setup will apply to this question and the next two questions. P ($/gallon) Demand: P=220-Q/100 0 Supply: P = Q/400 Q (gallons) Production of this chemical produces noxious odors that impact the health of the communities surrounding the production facilities. It is well known that every gallon produced increases health costs in society, but there is a lot of argument over how much health costs increase. In reality the number is that health costs increase by $3 per gallon produced, but that it hard to discover. If the government does not intervene in this market, what will be the total surplus for society in this market (including the $3 per gallon health costs)? Please do not round at any step of any calculation. Do not round your final answer.
The market for gravel has the following demand and supply relationships: Supply function: Q = 100P - 1,000 Inverse demand function: P = 50 - 0.01*Q + PX, where P represents price of gravel per ton in dollars, Q represents sales of gravel per week in tons, and PX is the price of some other product X in dollars per unit. Let PX = $50/ton In a diagram, qualitatively describe the change that would occur in the market for gravel (i.e. equilibrium price and quantity) if a new discovery has just made the production of product X cheaper. Briefly explain whether it is a movement along or shift of demand curve and supply curve for gravel. In addition to the new discovery regarding product X in previous question), suppose now workers producing gravel ask for sick leave due to COVID. Use supply and demand analysis to predict how these two shocks will affect equilibrium price and sales. Illustrate your results in a diagram. Is there enough information to determine if market prices will rise or…
The market for cake is shown with the following supply and demand function. Demand: Q = 7500 - 500P Supply: Q = -500 + 500P The market price needs to be above ____ before firms would begin start producing cake.
c. Suppose that a new government is elected that wants to keep out the poor. It declares that the minimum rent that landlords can charge is $2,500 per month. If the government can enforce that price floor, will there be a surplus or a shortage? (Click to select) Of how many units? Japartments per month And how many units will actually be rented each month? apartments:
The short-run demand and supply elasticities for crude oil are -0.076 and 0.088, respectively. The current price per barrel is $30 and the short-run equilibrium quantity is 23.84 million barrels per year. What will be the effects on the market price and quantity if the government decides to purchase (and store away) an additional 2 million barrels of oil? Assume that the additional consumption of oil by the government results in a parallel shift of the supply curve to the left by 2 million barrels per day What could be the economic rationale for buying and storing oil?
Refer to Example 2.10, which analyzes the effects of price controls on natural gas. Recall that the free-market wholesale price of natural gas (PG) is $6.40 per mcf (thousand cubic feet), the average price of crude oil (Po) is $50 per barrel, and production and consumption of gas (Q) are 23 Tcf (trillion cubic feet). Suppose the price elasticity of supply of natural gas is 0.20, the cross-price elasticity of supply of natural gas with respect to the price of oil is 0.12, the price elasticity of demand for natural gas is -0.60, and the cross-price elasticity of demand for natural gas with respect to the price of oil is 1.25. If so, then the linear supply curve for natural gas is OA. Q=1.346-1.638PG +0.055PO B. Q=12.056+0.368PG -0.495PO- O C. Q=16.296 +0.495P + 1.638Po O D. Q=10.562 +1.066PG-0.327Po O E. Q=15.648+0.719P+0.055Po
Price (Dollars per Bushel) 950 900 850 D 800 750 700 650 600 550 500 450 400 350 300 250 200 150 100 50 0 0 3 6 9 12 15 S 18 21 24 27 Bushels of Corn (Billions) The graph above shows hypothetical demand and supply functions for corn in the U.S. Oil prices increase due to some political problems in middle east. This causes the marginal cost of producing each bushel of corn to increase by $150.00. This is because, oil is used to produce gasoline that farmers use to operate tractors, groundwater water pumps, and other farming equipment. Higher gasoline prices also affect the costs of transporting corn to consumer centers. This number may, of course, be unrealistic. But it will make the graph less messy and calculations less cumbersome. Calculate the following:
Estimate the equilibrium price. $ per pan. Round to the nearest dollar. Use the graph attached below to help answer the question i appreciate it thanks!!!!
Consider that the retail market for sanitizing wipes in a small locale is described by the follow demand and supply equations respectively: P = 8.40 - 0.02Q and P = 6.60 + 0.01Q where P is the price in dollars and Q is the quantity measured in thousands per week. The market is currently in equilibrium. (Question 8 of 8) Now consider than an unexpected viral outbreak led to consumers ensuring that much more surfaces (counter tops, door handles, etc.) are clean and sanitized. At the same time, the government's demand for sanitizing wipes at various public institutions (hospitals, schools, etc.) has impacted the supply of sanitizing wipes in the retail market. Although the government is neither a buyer nor seller in the retail market, their requests for sanitizing wipes does affect how many sanitizing wipes firms are able to supply in the retail market. The market for sanitizing wipes adjusts afterwards and the market is in equilibrium. Suppose that after the market for sanitizing wipes…