The supply curve for the production of oil in Sanaton is shown in the diagram below. Supply based on both private/internal and private/internal+social costs is shown. Answer the following questions based on the diagram. Price Supply (Private + Social) Supply (Private) (25500,$100) (31000,$80) Demand Quantity

The supply curve for the production of oil in Sanaton is shown in the diagram below. Supply based on both private/internal and private/internal+social costs is shown. Answer the following questions based on the diagram. Price Supply (Private + Social) Supply (Private) (25500,$100) (31000,$80) Demand Quantity

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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1
The competitive equilibrium rent in a standard two bedroom apartment in Lawrence (a city) is $600. Now suppose the city council imposes a rent control law, imposing a price ceiling of $500. What is the impact of the rent control law? Price (dollars per month) 600 500 Rent controlled D₁ 0₂010 Quantity (apartments per month) O Both answers a and b are correct. O Q₁ apartments will be demanded. OQ3 apartments will be supplied. There will be a shortage of Q3 minus Q₂ apartments. O All of the above.
25 20 15 10 5 d(q) = 20-9/20 s(q) = 11+q/40 40 80 120 160 200 (a) Find a price where the supply and demand curve would predict a surplus in the marketplace for the produce. Explain how you know there would be a surplus using using data from the supply and demand curve. (b) Estimate the price where the consumers would completely stop buying the product. Explain how you found your answers by referring to the above graph.
1. Your mother is a mother coal mine owner with a benevolent streak. Someday you will take on the business. In an effort to train you, your mother has given you one coal mine. You will use it to extract coal this yer (present day) and again next year (one year from now). You must demonstrate your ability to extract coal in the social welfare maximizing way. The demand for coal is PD = 100-0.6qi. The supply of coal can be expressed as Ps=40+0.4qi. The discount rate for the second year is 3% a) the mine has a total of 140 tons of coal available, what quantity will you choose to extract in each period? That is what is q for each period? what are the corresponding prices for each period? b) It is realized that the mine has only 35 tons of coal available. Graph the present value of marginal net benefit curves for periods 1 and 2 together. What quantities will you now extract in each period as a result. c) What is the Marginal use cost of the coal for period 1 when only 35 tons are…
Suppose the equilibrium price is $10. Then a price ceiling of $15 would Be ineffective. Force the market price to $15. Force the market price to somewhere strictly between $10 and $15. Cannot be determined.
If demand increases at the same time that supply increases then... Group of answer choices Equilibrium price will definitely decrease. Equilibrium quantity may increase, decrease or stay the same. Equilibrium quantity will definitely increase. Equilibrium price may increase, decrease or stay the same. Equilibrium quantity will definitely decrease. Equilibrium price may increase, decrease or stay the same. Equilibrium price will definitely increase. Equilibrium quantity may increase, decrease or stay the same.
Suppose the market for steel is expressed as follows: Domestic demand: p = 40 - 0.2q, or q = 200 - 5p Domestic supply: p = 0.2q, or q = 5p Domestic supply (foreign): p = 0.1q, or q = 10p a) What is the equilibrium price and quantity if there is free trade, with no restriction on imports? b) What is the equilibrium price and quantity if the government imposes a binding import quota of 20 units? Depict parts a and b on a single graph. c) How are US steel firms affected by the quota? US automakers? Explain briefly.
Consider a competitive market for corn for which the quantities demanded and supplied (per year) at various prices are given as follows: Price (RM) Demand (millions) Supply (millions) 60 22 14 80 20 16 100 18 18 120 16 20 1. What are the equilibrium price and quantity of corn? 2. Suppose the government sets a price ceiling of RM80, will there be a shortage or surplus and how much? Explain why the market is in disequilibrium. 3. What are the impacts from the regulated price by government?
The following graph plots a supply curve (orange line) for a group of recent graduates looking to sell used smart devices. Each seller has only a single used smart device available for sale. Think of each rectangular area beneath the supply curve as the "cost," or minimum price that each seller is willing to accept. Assume that anyone who has a cost that equals the market price is willing to sell their used smart device. 300 250 PRICE (Dollars per used smart device) 20 200 150 180 100 Felix Janet 0 0 1 2 Larry H Megan 3 Raphael 4 QUANTITY (Used smart devices) Susan 5 ? Region X (the purple shaded area) represents total producer surplus when the market price is equal to $ area) represents when the market price while Region Y (the grey shaded In the following table, indicate which statements are true or false based on the information provided on the previous graph. Statement True False Assuming each seller receives a positive surplus, Larry will always receive more producer surplus than…
Government price controls like price ceilings and price floors will still lead to equilibrium between demand and supply. True or False
The table below shows the demand and supply schedule for gasoline in a hypothetical country called Microland Price per litre ($) Quantity Demanded in 000 Quantity Supplied in 000 litres (per Month) litres (per month) 11 0 27 10 2 25 9 4 23 8 6 20 7 8 17 6 10 15 5 12 12 4 14 10 3 16 7 2 18 5 1 3 3 Explain the effect of the subsidy on the market forces and the equilibrium point
QUESTION 7 Price P₂ 0 N M B SMC Demand Quantity a₂ a₁₂ Refer to the graph above. What area) represents the producer surplus at the market solution (lemake? QUESTION 8 Price SMC PMC D E S Y: N A L M Amount of Electricity Refer to the graph above. What area(s) represent(s) the producer surplus (firm's profits) at the market solution (Le.market equilibrium)? U PMC Demand