The consistency of offering “middle of the road” platforms with the median voter and rational ignorance concept. Concept Introduction: Rational ignorance is the decision that maximizes the utility to remain ignorant on a particular topic. If the action outweighs the opportunity cost of other actions then the decision is taken and if the cost remains short then the decision is not taken. There exist a theorem of median voters that states that “a majority rule voting system will select the outcome most preferred by the median voter".

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Exercise 5Consider the demand and supply functions for the notebooks market.QD=10,000−100pQS=900pa. Make a table with the corresponding supply and demand schedule.b. Draw the corresponding graph.c. Is it possible to find the price and quantity of equilibrium with the graph method? d. Find the price and quantity of equilibrium by solving the system of equations.

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Chapter 16, Problem 6P

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The consistency of offering “middle of the road” platforms with the median voter and rational ignorance concept.

Concept Introduction:

Rational ignorance is the decision that maximizes the utility to remain ignorant on a particular topic. If the action outweighs the opportunity cost of other actions then the decision is taken and if the cost remains short then the decision is not taken. There exist a theorem of median voters that states that “a majority rule voting system will select the outcome most preferred by the median voter".

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Exercise 5Consider the demand and supply functions for the notebooks market.QD=10,000−100pQS=900pa. Make a table with the corresponding supply and demand schedule.b. Draw the corresponding graph.c. Is it possible to find the price and quantity of equilibrium with the graph method? d. Find the price and quantity of equilibrium by solving the system of equations.

1. Consider the market supply curve which passes through the intercept and from which the marketequilibrium data is known, this is, the price and quantity of equilibrium PE=50 and QE=2000.a. Considering those two points, find the equation of the supply. b. Draw a graph for this equation. 2. Considering the previous supply line, determine if the following demand function corresponds to themarket demand equilibrium stated above. QD=.3000-2p.

Supply and demand functions show different relationship between the price and quantities suppliedand demanded. Explain the reason for that relation and provide one reference with your answer.