1. Using a supply-and-demand graph andassuming competitive markets, show andexplain the effect on equilibrium price andquantity of the following:(a) A technological change that reduces thecost of producing X-rays on the market forphysician clinic services.(b) Increased graduations of new doctors onthe market for physician services.(c) The virtual elimination of smoking in thepopulation on the market for hospital services.(d) A price ceiling placed on physician fees inthe market for physician services.

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Answered: 1. Using a supply-and-demand graph and…

ECON MICRO

5th Edition

ISBN:9781337000536

Author:William A. McEachern

Publisher:William A. McEachern

Chapter11: Resource Market

Section: Chapter Questions

Problem 3.5P

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15. In the market for gold jewelry, products come in a range of designs, styles, and levels of quality. Which of the characteristics of a competitive market is violated in the jewelry market? What does this imply for consumers’ willingness to buy from different producers?
5.How does a market reach equilibrium without any outside intervention?Explain. Show graph if applicable.
Question 1: QUESTION d Read the scenario and determine if it wil change the supply or the demand of the market listed. Will equilibrium price increaseor decrease ? Will equilibrium quantit increase or decrease? Market: Sugar produced in the United State Scenario: Tarifts on imported sugar lead U.S, sugar to buy more from U.S, sugar producers. Supply or demand? Equilibrium price? Equillbrium quanity? Market: Chunky Monkey Icecream Scenario: Social Media Influencer Addison Rae advertises Kemps vanilla frozen yogurt to her 100 million followers. Supply or demand? Equilibrium Price? Equilibrium Quanity? Market: New computer Scenario: U.S treasury announces new stimulus check that would be sent to all households. Supply or demand? Equillibrium Price? Equillibrium Quantiy? Market: Trucking Service Scenario: OPEC announces a massive oil production increase driving down the cost of gas Supply or demand? Equilibrium Price? Equilibrium Quantity?
1) In the market for smart phones, explain how will thefollowing statement impact the equilibrium price andquantity?Average incomes increase and new technology improvesproductive efficiency(Make sure that you also consider the effect on demandand supply curves where appropriate)
Economics PROBLEM SET 2 Supply and Demand DEMAND/SUPPLY SCHEDULE 1 DEMAND/SUPPLY SCHEDULE 2 Price Qd Qs Qd + 200 (at each price) Qs + 200 (at each price) $50 200 800 $45 300 700 $40 400 600 $35 500 500 $30 600 400 $25 700 300 $20 800 200 Please complete demand/supply schedule 2 i.e if Qd and Qs from schedule 1 are increased by 200 units. Determine equilibrium Price & Quantity in Schedule 1. Determine equilibrium Price & Quantity in Schedule 2. Assume a price floor of $45 in Schedule 1; what is the result? Assume a price ceiling of $25 in Schedule 1; what is the result? In both cases what is the…
a) What is the role of price in quantity demand & supply and what is the market equilibrium?b) What is system of linear equation and its possible solution method and types of solution set.
a) Which of the following is typically not used to evaluate economic policy? O Stability O Economic growth O Kosher-Index O Equity b) Consider following demand and supply function for a market: D: P-280-2Q: S: P=30+8Q. The market equilibrium quantity is Q-45 Q = 55 Q-35 Q-25 c) Consider the market for wheat, which currently is in equilibrium. Covid-19 related social distancing requirements make production more expensive. This will lead to O An increase in equilibrium price and quantity O A decrease in equilibrium price and an increase in equilibrium quantity O An increase in equilibrium price and a decrease in equilibrium quantity O A decrease in equilibrium price and quantity
Question 1 (a) Assume that the markets for sugar cane, rum and whiskey are initially in equilibrium (i.e., supply equals demand in each case). Assume further that a good harvest impacts the world’s sugar cane crop. Sugar cane is a principal ingredient in rum, but it is not an ingredient in whiskey. Rum and whiskey are substitutes in consumption.(ii) Discuss the effect on the markets for each of the three products if the government implements a price restriction in the sugar cane market with the aim of protecting the farmers. How will this impact the revenues for sugar growers, rum producers and whiskey producers?
urgent Question 3.Assume that a Swiss drug company holds the patent on a malaria medicine that has no closesubstitutes. If it charges the same price in every country where it sells this medicine, a price thatwill maximize its profits, that price will exceed what the vast majority of consumers in twentylower-income countries can afford to pay.a) Illustrate this situation using supply and demand curves.b) Use supply and demand curves to show how the Swiss company can sell at different prices ineach country and make a profit in each. Identify on the curves the profit the Swiss companymakes in a typical poorer country, and the profit it makes in a wealthier country.c) What condition is necessary for the Swiss company to be able to follow this strategy?
1. Caribbean economies tend to rely heavily on the Tourism sector, offering Sun, Sea andSand as the “tourism product” for which tourists purchase hotel accommodationsto enjoy. Hoteliers offer these services and are therefore major “suppliers” in thismarket.In 2017 however, several natural disasters affected the Caribbean, resulting ineconomic, environmental and human losses. In order to analyze the impact ofthese Natural Disasters on the hotel industry, answer the following questions. a. With the use of an appropriate demand and supply diagram for hotel rooms(accommodation), illustrate and explain how the news of an impending Tropical Stormto the Caribbean region would affect the market price (hotel rates) and quantity tradedof hotel rooms.b. Following the destruction of hotel infrastructure from the passage of the Hurricanes, usean appropriate demand and supply diagram for hotel rooms (accommodations) toillustrate and explain the impact of the Hurricanes on the market price and…
1.What is a market and what is the key to functioning markets? Explain.2. How do competitive markets guide the allocation of resources?3. Give an example of a good or service that should not be allocated entirely by a free, unregulated market. Explain your reasoning. 4. Identify a price control that is, has been, or could be enacted in the real world. Then, explain the potential benefits and drawbacks of that control. A goal of this prompt is to see both sides of an argument, so please come up with at least one argument for and against said price control.
3. (a) What is the freight market? (b ) Explain how the following scenario impacts the freight market.Scenario: 2015 Market ReportExcess supply of shipping tonnage throughout the dry bulk sector has resulted in an increased level of scrapping. Levels of scrapping were not enough to bridge the gap between demand and supply and bring the sector back to balance. As a result, a large number of vessels are idle and where employment occurs, it is a limited capacity. (c ) Outline the set of market circumstances that indicate that a vessel is at the end of her economic life.

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