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![In a hypothetical country called Tritonland, demand and supply of
fish are determined by the following system of equations:
Q
Q = 3+P+v,
where Q and P stand for quantity and price respectively, and that
u and v are independent Uniform [0, 2]. Suppose we have i.i.d.
observations (Qi, Pi)_1 from n markets in equilibrium. Answer
the next few questions.
=
15 P+u,](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F1858a710-c111-4513-9004-6c10bf7d1d6e%2Ff0cb09bf-72b1-4854-9af6-d791de4ad703%2Fsi4tm0o_processed.png&w=3840&q=75)
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- At a unit price of $340, the quantity demanded of a certain commodity is 80 pounds. If the unit price increases to $560, the quantity demanded decreases by 22 pounds. Find the demand equation (assuming it is linear) where p is the unit price and x is the quantity demanded for this commodity in pounds. p= At what price are no consumers willing to buy this commodity? According to the above model, how many pounds of this commodity would consumers take if it was free?Consider two goods, X and Y. The price of product X increases from R6 to R8 per unit. As aresult, the quantity demanded of product Y decreases from 200 to 190 units. Q: Give at least two real-world examples of goods like X and Y.If no trade occurs between the markets, what are the equilibrium values of D1, S1, P1, D2, S2, and P2? Solve algebraically question number 1 that is pictured
- Some have argued that higher cigarette prices do not deter smoking. While there are many arguments both for and against this view, some find the following argument to be the most persuasive of all: “The laws of supply and demand indicate that higher prices are ineffective in reducing smoking. In particular, higher cigarette prices will reduce the demand for cigarettes. This reduction in demand will push the equilibrium price back down to its original level. Since the equilibrium price will remain unchanged, smokers will consume the same number of cigarettes.”Do you agree or disagree with this view? Disagree - the reduction in demand will push the equilibrium price below its original level. Disagree - this confuses a change in demand with a change in quantity demanded. Agree - the price increase will ultimately leave cigarette consumption unchanged. Disagree - higher cigarette prices will actually increase the demand for cigarettes.Some have argued that higher cigarette prices do not deter smoking. While there are many arguments both for and against this view, some find the following argument to be the most persuasive of all: “The laws of supply and demand indicate that higher prices are ineffective in reducing smoking. In particular, higher cigarette prices will reduce the demand for cigarettes. This reduction in demand will push the equilibrium price back down to its original level. Since the equilibrium price will remain unchanged, smokers will consume the same number of cigarettes.” Do you agree or disagree with this view?Suppose that, as part of an international trade agreement, the U.S. government reduces the tariff on imported coffee. Will this affect the supply or the demand for coffee? Why? Which determinant of demand or supply is being affected? Show graphically with before- and after-curves on the same axes. How will this change the equilibrium price and quantity of coffee? Explain your reasoning.
- Draw a demand and supply graph for each of the following questions. For each question, start by drawing a correctly labeled graph of the market for cookies in equilibrium. Your starting graphs should each have correctly labeled axes and demand and supply curves. Label the equilibrium price and quantity as p1 and p2 on the axes of each of the starting graphs. Show the effect on the equilibrium price and quantity in the market for cookies if the price of flour decreases. Determine which curve is affected by the change in the price of flour and whether it increases or decreases. On your graph, draw a new curve indicating the shift—either to the right or the left. Label the new equilibrium price and quantity as p2 and q2.choose one in the brackets to fill in for the following question: If the wage rate for workers in car manufacturing rises, the (supply curve , quantity supplied ) for cars will [ increase, decrease, remain unchanged ) and the [ demand curve, quantity demanded) for cars will [ increase, remain unchanged, decrease) Consider a competitive market in equilibrium at (Q1,P1). When there is an increase in demand in this market, what exactly happens in this market? Help describe what happens by selecting the correct sequence of events from the drop-down menus below. [Advice: draw this situation in a competitive market diagram.] step 1:( creates an access demand at the original market price, this allows the market to clear at the original market price , this creates an excess supply at the original market price ) step 2: (this puts upward pressure on the price, this puts downward pressure on the price , this does not affect the price in this market ) step 3: ( there is an increase in supply, as…When graphing a market, one of the key aspects to remember is that equilibrium occurs where supply equals demand. Therefore, you can find the equilibrium price and quantity by setting the supply and demand equations equal to one another. In this case, since domestic demand is P = 11.5 - Q and domestic supply is P = 5.5 + Q, you can find the equilibrium quantity as 11.5 – Q = 5.5 + Q. Solving for Q, you get 2Q = 6 or Q = 3 (which in this case equates then to 300 million bushels). Plugging that answer back into either the supply or demand equation, you find the equilibrium price (which is 8.5 or 85 yuan) or Rent in this case). This is the equilibrium point with no trade.With the application of the world price and then the world price plus tariff, you just need to plug the established prices (6.5 for world price, 6.5 + 1.5 for the tariff) into the supply and demand equations to find the quantity supplied and the quantity demanded with or without the tariff. Recently, China placed tariffs…
- Draw a demand and supply graph for each of the following questions. For each question, start by drawing a correctly labeled graph of the market for cookies in equilibrium. Your starting graphs should each have correctly labeled axes and demand and supply curves. Label the equilibrium price and quantity as p1 and p2 on the axes of each of the starting graphs. Show the effect on the equilibrium price and quantity in the market for cookies if the price of milk increases. Determine which curve is affected by the change in the price of milk and whether it increases or decreases. On your graph, draw a new curve indicating the shift—either to the right or the left. Label the new equilibrium price and quantity as p2 and q2. Show the effect on the equilibrium price and quantity in the market for cookies if the price of flour decreases. Determine which curve is affected by the change in the price of flour and whether it increases or decreases. On your graph, draw a new curve indicating the…Assume that demand for a commodity is represented by the equation P=20−2Qd.�=20−2��.Supply is represented by the equation P=−5+3Qs,�=−5+3��,where Qd and Qs are quantity demanded and quantity supplied, respectively, and P is price.Instructions: Round your answer for price to 2 decimal places and enter your answer for quantity as a whole number. Using the equilibrium condition Qs = Qd, solve the equations to determine equilibrium price and equilibrium quantity.
