the value of consumer price index in the base year and the annual rate of consumer price inflation in 2015 when the CPI equals 200 in 2014 and 240 in 2015. Concept Introduction : Consumer Price Index: It is a measure of average change in prices over the period of time.

Question

Suppose the marginal social cost of television sets is $100. This is constant and equal to the average cost of television sets. The annual demand for television sets is given by the following equation: Q = 200,000-500P, where Qis the quantity sold per year and P is the price of television sets. a) If television sets are sold in a perfectly competitive market, calculate the annual number sold. Under what circumstances will the market equilibrium be efficient? b) Show the losses in well-being each year that would result from a law limiting sales of television sets to 100,000 per year. Show the effect on the price, marginal social benefit, and marginal social cost of television sets. Show the net loss in well-being that will result from a complete ban on the sales of television sets. (show with graphs.)

Answer 1

Question

Chapter 6, Problem 4.9P

Sub-Part

A

To determine

the value of consumer price index in the base year and the annual rate of consumer price inflation in 2015 when the CPI equals 200 in 2014 and 240 in 2015.

Concept Introduction:

Consumer Price Index: It is a measure of average change in prices over the period of time.

Sub-Part

B

To determine

the value of consumer price index in the base year and the annual rate of consumer price inflation in 2015 when the CPI equals 150 in 2014 and 175 in 2015.

Concept Introduction:

Consumer Price Index: It is a measure of average change in prices over the period of time.

Sub-Part

C

To determine

the value of consumer price index in the base year and the annual rate of consumer price inflation in 2015 when the CPI equals 325 in 2014 and 340 in 2015.

Concept Introduction:

Consumer Price Index: It is a measure of average change in prices over the period of time.

Sub-Part

D

To determine

the value of consumer price index in the base year and the annual rate of consumer price inflation in 2015 when the CPI equals 325 in 2014 and 315 in 2015.

Concept Introduction:

Consumer Price Index: It is a measure of average change in prices over the period of time.

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Suppose the marginal social cost of television sets is $100. This is constant and equal to the average cost of television sets. The annual demand for television sets is given by the following equation: Q = 200,000-500P, where Qis the quantity sold per year and P is the price of television sets. a) If television sets are sold in a perfectly competitive market, calculate the annual number sold. Under what circumstances will the market equilibrium be efficient? b) Show the losses in well-being each year that would result from a law limiting sales of television sets to 100,000 per year. Show the effect on the price, marginal social benefit, and marginal social cost of television sets. Show the net loss in well-being that will result from a complete ban on the sales of television sets. (show with graphs.)

refer to exhibit 8.12 and identify each curve in the graph

Q1. (Chap 1: Game Theory.) In the simultaneous games below player 1 is choosing between Top and Bottom, while player 2 is choosing between Left and Right. In each cell the first number is the payoff to player 1 and the second is the payoff to player 2. Part A: Player 1 Top Bottom Player 2 Left 25, 22 Right 27,23 26,21 28, 22 (A1) Does player 1 have a dominant strategy? (Yes/No) If your answer is yes, which one is it? (Top/Bottom) (A2) Does player 2 have a dominant strategy? (Yes/No.) If your answer is yes, which one is it? (Left/Right.) (A3) Can you solve this game by using the dominant strategy method? (Yes/No) If your answer is yes, what is the solution?

Answer 2

Question

Chapter 6, Problem 4.9P

Sub-Part

A

To determine

the value of consumer price index in the base year and the annual rate of consumer price inflation in 2015 when the CPI equals 200 in 2014 and 240 in 2015.

Concept Introduction:

Consumer Price Index: It is a measure of average change in prices over the period of time.

Sub-Part

B

To determine

the value of consumer price index in the base year and the annual rate of consumer price inflation in 2015 when the CPI equals 150 in 2014 and 175 in 2015.

Concept Introduction:

Consumer Price Index: It is a measure of average change in prices over the period of time.

Sub-Part

C

To determine

the value of consumer price index in the base year and the annual rate of consumer price inflation in 2015 when the CPI equals 325 in 2014 and 340 in 2015.

Concept Introduction:

Consumer Price Index: It is a measure of average change in prices over the period of time.

Sub-Part

D

To determine

the value of consumer price index in the base year and the annual rate of consumer price inflation in 2015 when the CPI equals 325 in 2014 and 315 in 2015.

Concept Introduction:

Consumer Price Index: It is a measure of average change in prices over the period of time.

Expert Solution & Answer

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Answer 3

Question

Chapter 6, Problem 4.9P

Sub-Part

A

To determine

the value of consumer price index in the base year and the annual rate of consumer price inflation in 2015 when the CPI equals 200 in 2014 and 240 in 2015.

Concept Introduction:

Consumer Price Index: It is a measure of average change in prices over the period of time.

Sub-Part

B

To determine

the value of consumer price index in the base year and the annual rate of consumer price inflation in 2015 when the CPI equals 150 in 2014 and 175 in 2015.

Concept Introduction:

Consumer Price Index: It is a measure of average change in prices over the period of time.

Sub-Part

C

To determine

the value of consumer price index in the base year and the annual rate of consumer price inflation in 2015 when the CPI equals 325 in 2014 and 340 in 2015.

Concept Introduction:

Consumer Price Index: It is a measure of average change in prices over the period of time.

Sub-Part

D

To determine

the value of consumer price index in the base year and the annual rate of consumer price inflation in 2015 when the CPI equals 325 in 2014 and 315 in 2015.

Concept Introduction:

Consumer Price Index: It is a measure of average change in prices over the period of time.

Expert Solution & Answer

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Answer 4

Question

Chapter 6, Problem 4.9P

Sub-Part

A

To determine

the value of consumer price index in the base year and the annual rate of consumer price inflation in 2015 when the CPI equals 200 in 2014 and 240 in 2015.

Concept Introduction:

Consumer Price Index: It is a measure of average change in prices over the period of time.

Sub-Part

B

To determine

the value of consumer price index in the base year and the annual rate of consumer price inflation in 2015 when the CPI equals 150 in 2014 and 175 in 2015.

Concept Introduction:

Consumer Price Index: It is a measure of average change in prices over the period of time.

Sub-Part

C

To determine

the value of consumer price index in the base year and the annual rate of consumer price inflation in 2015 when the CPI equals 325 in 2014 and 340 in 2015.

Concept Introduction:

Consumer Price Index: It is a measure of average change in prices over the period of time.

Sub-Part

D

To determine

the value of consumer price index in the base year and the annual rate of consumer price inflation in 2015 when the CPI equals 325 in 2014 and 315 in 2015.

Concept Introduction:

Consumer Price Index: It is a measure of average change in prices over the period of time.

Expert Solution & Answer

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Answer 5

Chapter 6, Problem 4.9P

Sub-Part

A

To determine

the value of consumer price index in the base year and the annual rate of consumer price inflation in 2015 when the CPI equals 200 in 2014 and 240 in 2015.

Concept Introduction:

Consumer Price Index: It is a measure of average change in prices over the period of time.

Sub-Part

B

To determine

the value of consumer price index in the base year and the annual rate of consumer price inflation in 2015 when the CPI equals 150 in 2014 and 175 in 2015.

Concept Introduction:

Consumer Price Index: It is a measure of average change in prices over the period of time.

Sub-Part

C

To determine

the value of consumer price index in the base year and the annual rate of consumer price inflation in 2015 when the CPI equals 325 in 2014 and 340 in 2015.

Concept Introduction:

Consumer Price Index: It is a measure of average change in prices over the period of time.

Sub-Part

D

To determine

the value of consumer price index in the base year and the annual rate of consumer price inflation in 2015 when the CPI equals 325 in 2014 and 315 in 2015.

Concept Introduction:

Consumer Price Index: It is a measure of average change in prices over the period of time.

Answer 6

Chapter 6, Problem 4.9P

Sub-Part

A

To determine

the value of consumer price index in the base year and the annual rate of consumer price inflation in 2015 when the CPI equals 200 in 2014 and 240 in 2015.

Concept Introduction:

Consumer Price Index: It is a measure of average change in prices over the period of time.

Answer 7

Chapter 6, Problem 4.9P

Sub-Part

A

To determine

the value of consumer price index in the base year and the annual rate of consumer price inflation in 2015 when the CPI equals 200 in 2014 and 240 in 2015.

Concept Introduction:

Consumer Price Index: It is a measure of average change in prices over the period of time.

Answer 8

Sub-Part

B

To determine

the value of consumer price index in the base year and the annual rate of consumer price inflation in 2015 when the CPI equals 150 in 2014 and 175 in 2015.

Concept Introduction:

Consumer Price Index: It is a measure of average change in prices over the period of time.

Answer 9

Sub-Part

B

To determine

the value of consumer price index in the base year and the annual rate of consumer price inflation in 2015 when the CPI equals 150 in 2014 and 175 in 2015.

Concept Introduction:

Consumer Price Index: It is a measure of average change in prices over the period of time.

Answer 10

Sub-Part

C

To determine

the value of consumer price index in the base year and the annual rate of consumer price inflation in 2015 when the CPI equals 325 in 2014 and 340 in 2015.

Concept Introduction:

Consumer Price Index: It is a measure of average change in prices over the period of time.

Answer 11

Sub-Part

C

To determine

the value of consumer price index in the base year and the annual rate of consumer price inflation in 2015 when the CPI equals 325 in 2014 and 340 in 2015.

Concept Introduction:

Consumer Price Index: It is a measure of average change in prices over the period of time.

Answer 12

Sub-Part

D

To determine

the value of consumer price index in the base year and the annual rate of consumer price inflation in 2015 when the CPI equals 325 in 2014 and 315 in 2015.

Concept Introduction:

Consumer Price Index: It is a measure of average change in prices over the period of time.

Answer 13

Sub-Part

D

To determine

the value of consumer price index in the base year and the annual rate of consumer price inflation in 2015 when the CPI equals 325 in 2014 and 315 in 2015.

Concept Introduction:

Consumer Price Index: It is a measure of average change in prices over the period of time.

Answer 14

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Answer 15

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Ch. 6 - Prob. 1.1P Ch. 6 - Prob. 1.2P Ch. 6 - Prob. 1.3P Ch. 6 - Prob. 2.4P Ch. 6 - Prob. 2.5P Ch. 6 - Prob. 3.6P Ch. 6 - Prob. 3.7P Ch. 6 - Prob. 4.8P Ch. 6 - Prob. 4.9P

the value of consumer price index in the base year and the annual rate of consumer price inflation in 2015 when the CPI equals 200 in 2014 and 240 in 2015. Concept Introduction : Consumer Price Index: It is a measure of average change in prices over the period of time.

the value of consumer price index in the base year and the annual rate of consumer price inflation in 2015 when the CPI equals 200 in 2014 and 240 in 2015. Concept Introduction: Consumer Price Index: It is a measure of average change in prices over the period of time.

the value of consumer price index in the base year and the annual rate of consumer price inflation in 2015 when the CPI equals 150 in 2014 and 175 in 2015. Concept Introduction: Consumer Price Index: It is a measure of average change in prices over the period of time.

the value of consumer price index in the base year and the annual rate of consumer price inflation in 2015 when the CPI equals 325 in 2014 and 340 in 2015. Concept Introduction: Consumer Price Index: It is a measure of average change in prices over the period of time.

the value of consumer price index in the base year and the annual rate of consumer price inflation in 2015 when the CPI equals 325 in 2014 and 315 in 2015. Concept Introduction: Consumer Price Index: It is a measure of average change in prices over the period of time.

Chapter 6 Solutions

the value of consumer price index in the base year and the annual rate of consumer price inflation in 2015 when the CPI equals 200 in 2014 and 240 in 2015.

Concept Introduction:

Consumer Price Index: It is a measure of average change in prices over the period of time.

the value of consumer price index in the base year and the annual rate of consumer price inflation in 2015 when the CPI equals 150 in 2014 and 175 in 2015.

Concept Introduction:

Consumer Price Index: It is a measure of average change in prices over the period of time.

the value of consumer price index in the base year and the annual rate of consumer price inflation in 2015 when the CPI equals 325 in 2014 and 340 in 2015.

Concept Introduction:

Consumer Price Index: It is a measure of average change in prices over the period of time.

the value of consumer price index in the base year and the annual rate of consumer price inflation in 2015 when the CPI equals 325 in 2014 and 315 in 2015.

Concept Introduction:

Consumer Price Index: It is a measure of average change in prices over the period of time.