Subpart (a):
To illustrate the given situation with supply and demand curves.
Subpart (a):
Explanation of Solution
Figure 1 illustrates the
Figure 1 shows the demand and supply curves for the artwork Triple Elvis, which was sold in an auction for $81.9 million. The horizontal axis measures the quantity and the vertical axis measures the price of the commodity. The supply curve is a vertical line because the quantity of the artwork is fixed and unified.
Concept introduction:
Demand curve: A demand curve is a graph which shows the quantities of a commodity that the consumers will buy at different price levels.
Supply curve: A supply curve is a graph which shows the quantities of a commodity that the producers are willing to sell at different price levels.
Subpart (b):
To illustrate the given situation with supply and demand curves.
Subpart (b):
Explanation of Solution
Figure 2 illustrates the change in market equilibrium.
Figure 2 shows the demand and supply curves for the hogs. The horizontal axis measures the quantity and the vertical axis measures the price of the commodity. The increase in the supply of the hogs has led to a rightward shift of the supply curve, all while the demand remains unchanged. As a result, the equilibrium changes and the prices decrease from 98 cents to 62 cents and the quantity increases from Q0 to Q1.
Concept introduction:
Demand curve: A demand curve is a graph which shows the quantities of a commodity that the consumers will buy at different price levels.
Supply curve: A supply curve is a graph which shows the quantities of a commodity that the producers are willing to sell at different price levels.
Subpart (c):
To illustrate the given situation with supply and demand curves.
Subpart (c):
Explanation of Solution
Figure 3 illustrates the change in market equilibrium.
Figure 3 shows the demand and supply curves for the organic produce. The horizontal axis measures the quantity and the vertical axis measures the price of the commodity. The initial increase in the demand for organic produce led to the shift of the demand curve from D0 to D1. However, the increase in the number of farmers producing the organic produce also increased, leading to an increase in the supply of the product which shifts the supply curve from S0 to S1. The combined effect is that the price of organic produce reduces from P0 to P1 as the quantity supplied increases from Q0 to Q1.
Concept introduction:
Demand curve: A demand curve is a graph which shows the quantities of a commodity that the consumers will buy at different price levels.
Supply curve: A supply curve is a graph which shows the quantities of a commodity that the producers are willing to sell at different price levels.
Want to see more full solutions like this?
Chapter 4 Solutions
Principles of Economics (12th Edition)
- Discuss the preferred deterrent method employed by the Zambian government to combat tax evasion, monetary fines. As noted in the reading the potential penalty for corporate tax evasion is a fine of 52.5% of the amount evaded plus interest assessed at 5% annually along with a possibility of jail time. In general, monetary fines as a deterrent are preferred to blacklisting of company directors, revoking business operation licenses, or calling for prison sentences. Do you agree with this preference? Should companies that are guilty of tax evasion face something more severe than a monetary fine? Something less severe? Should the fine and interest amount be set at a different rate? If so at why? Provide support and rationale for your responses.arrow_forwardNot use ai pleasearrow_forwardFor the statement below, argue in position for both in favor or opposed to the statement. Incompetent leaders can't be ethical leaders. Traditional leadership theories and moral standards are not adequate to help employees solve complex organizational issues.arrow_forward
- presentation on "Dandelion Insomnia." Poemarrow_forwardDon't used Ai solutionarrow_forward"Whether the regulator sells or gives away tradeable emission permits free of charge, the quantities of emissions produced by firms are the same." Assume that there are n identical profit-maximising firms where profit for each firm is given by π(e) with л'(e) > 0; π"(e) < 0 and e denotes emissions. Individual emissions summed over all firms gives E which generates environmental damages D(E). Show that the regulator achieves the optimal level of total pollution through a tradeable emission permit scheme, where the permits are distributed according to the following cases: Case (i) the firm purchases all permits; Case (ii) the firm receives all permits free; and Page 3 of 5 ES30031 Case (iii) the firm purchases a portion of its permits and receives the remainder free of charge.arrow_forward
- compare and/or contrast the two plays we've been reading, Antigone and A Doll's House.arrow_forwardPlease answer step by steparrow_forwardSuppose there are two firms 1 and 2, whose abatement costs are given by c₁ (e₁) and C2 (е2), where e denotes emissions and subscripts denote the firm. We assume that c{(e) 0 for i = 1,2 and for any level of emission e we have c₁'(e) # c₂' (e). Furthermore, assume the two firms make different contributions towards pollution concentration in a nearby river captured by the transfer coefficients ε₁ and 2 such that for any level of emission e we have C₂'(e) # The regulator does not know the resulting C₁'(e) Τι environmental damages. Using an analytical approach explain carefully how the regulator may limit the concentration of pollution using (i) a Pigouvian tax scheme and (ii) uniform emissions standards. Discuss the cost-effectiveness of both approaches to control pollution.arrow_forward
- Bill’s father read that each year a car’s value declines by 10%. He also read that a new car’s value declines by 12% as it is driven off the dealer’s lot. Maintenance costs and the costs of “car problems” are only $200 per year during the 2-year warranty period. Then they jump to $750 per year, with an annual increase of $500 per year.Bill’s dad wants to keep his annual cost of car ownership low. The car he prefers cost $30,000 new, and he uses an interest rate of 8%. For this car, the new vehicle warranty is transferrable.(a) If he buys the car new, what is the minimum cost life? What is the minimum EUAC?(b) If he buys the car after it is 2 years old, what is the minimum cost life? What is the minimum EUAC?(c) If he buys the car after it is 4 years old, what is the minimum cost life? What is the minimum EUAC?(d) If he buys the car after it is 6 years old, what is the minimum cost life? What is the minimum EUAC?(e) What strategy do you recommend? Why? Please show each step and formula,…arrow_forwardO’Leary Engineering Corp. has been depreciating a $50,000 machine for the last 3 years. The asset was just sold for 60% of its first cost. What is the size of the recaptured depreciation or loss at disposal using the following depreciation methods?(a) Straight-line with N = 8 and S = 2000(b) Double declining balance with N = 8(c) 40% bonus depreciation with the balance using 7-year MACRS Please show every step and formula, don't use excel. The answer should be (a) $2000 loss, (b) $8000 deo recap, (c) $14257 dep recap, thank you.arrow_forwardThe cost of garbage pickup in Green Gulch is $4,500,000 for Year 1. The population is increasing at 6%, the nominal cost per ton is increasing at 5%, and the general inflation rate is estimated at 4%.(a) Estimate the cost in Year 4 in Year-1 dollars and in nominal dollars.(b) Reference a data source for trends in volume of garbage per person. How does including this change your answer? Please show every step and formula, don't use excel. The answer should be $6.20M, $5.2M, thank you.arrow_forward
Economics (MindTap Course List)EconomicsISBN:9781337617383Author:Roger A. ArnoldPublisher:Cengage Learning
Exploring EconomicsEconomicsISBN:9781544336329Author:Robert L. SextonPublisher:SAGE Publications, Inc
Principles of Economics 2eEconomicsISBN:9781947172364Author:Steven A. Greenlaw; David ShapiroPublisher:OpenStax