If in the figure above price P1 equals $3.00, price P2 equals $14.00, price P3 equals $30.50, and quantity Q1 equals 89 units, then what is the value of consumer surplus the market equilibrium? O a $1223.75 Ob $1980.25 O c. $1246.00 Od $734.25 Oe. $489.50 Of $756.50
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- please explain to me step by step how to find the equilibrium price i more detail than before, how do you choose which terms to move to the other side of the equation, and why when moved they are positive or negative the answer that i received before, when i substitute the price in de demand and in the supply equation, i dont get the same answer The following represents demand for widgets (a fictional product): QD = -47,214 – 90P + 0.8M - 2PR where P is the price of widgets, M is income, and PR is the price of a related (fictional) good, the wodget. Supply of widgets is determined by QS = 400P – 15,550 Determine whether widgets are a normal or inferior good, and whether widgets and wodgets are substitutes or complements. Assume that M = $68,500 and PR = $53. Solve algebraically to determine the equilibrium price and quantity of widgets. Generate a supply/demand graph in Excel. Be sure that P is the vertical axis and Q the horizontal. Does the graphical equilibrium correspond to…James has a wage income of $50.000 in the present and $200.000 in the future. His utility is given as U = min (2Cp, Cr) - that is, his utility is the lesser of twice the dollars spent on present consumption or the dollars spent on future consumption. The interest rate is 30%. (A) What is the minimum amount of money James would be willing to accept today to have the interest rate at 40% rather than 30%? Explain and show work (B) What is the maximum amount of money James would pay today to have the interest rate at 30% rather than 40%? Explain and show workQ-4 Suppose that Kaleed’s income 1800 RO. And he purchased 30 units of goods y that cost 30 RO per unit. Calculate how many units Kaleed can buy of product X when it costs 20 RO.
- I NEED HELP WITH PART B! (a) A consumer has utility u(x,y,z) = ln(x) + 2ln(y) + 3ln(z) over the three goods, x,y and z and pz=1. Optimally she consumes 30 units of z. What is her income? How much money does she spend on x? (HINT: MUx = 1/x, MUy= 2/y, MUz = 3/z and remeber the "equivalent bang for the buck" condition). (b) Forget about (a). Suppose you have t= 29 hours in total to spend on 3 projects X,Y and Z to make some money. If you spend x hours on project X, you make 2 sqrt(x) dollars; If you spend y hours on project Y, you make 3 sqrt(y) dollars; If you spend z hours on project Z, you make 4sqrt(z) dollars; Writing down your "utility function" u(x,y,z) and the constraint, solve the utility maximization problem; what is the optimal amount of time to spend on x? on y? on z?Tom's income is 32. He consumes a single consumption good, C, which has a price of 2. His utility function depends on his marital status: when happily married, his utility is given byU=C^(1/2) When he is not married, his utility is given by U=0.5C^(1/2) a. Suppose that Tom is not currently married. What is his utility? Now suppose that Tom gets married.What is his utility? Assume Tom can spend all his income on his own consumption when he is married. b. Use compensating variation (CV) and equivalent variation (EV) to calculate the value of marriage to Tom. How do the two figures compare?)ncob buys only milk and cookies.a. In yeor 1, Jocob earns $100, milk costs $2 perqua rt, and cooki es cost S4 per dozen. Ora\"•jacob's budget constraint.b. Now suppose that a ll prices increase by10 percent in yeor 2 ond !hot jacob's salaryincreases by 10 percent as well. Draw jacob'sn<:w budget constraint. How would Jacob'soptimnl combination of milk and cookies in year 2compare to his optimal combination in year 17
- Slacks and jackets are two complementary goods, find the market equilibrium price and quantity form their demand and supply equations: Qd(s)=410-5Ps-2Pj; Qs(s)=-60+3Ps Qdj=295-Ps-3Pj; Qsj=-120+2PEconomics ASAP) Average waiting time for ordering is 2minutes. However, in peak - hours, the timeincrease up to 6 minutes. Around 2- 4 people in line during thenormal time, and in the peak- hours, about4 - 6 people in the line for ordering. Customers usually wait 8 minutes to get their orders. In No peak- hour, No customers in the line.In No peak- hour, It took 3 minutes to getthe order. {ONLY ONE CASHIER AND ONE BARISTA CAN U CALCULATE THE ARRIVAL RATE,SERVICE RATE (CASHIER), SERVICE RATE (BARISTA)? AND BOTTLE NECK }Some finance experts advise consumers not to worry aboutrising gasoline prices, the cost of which can easily be coveredby forgoing one takeout meal a month, but to worry abouthow high energy prices will affect the rest of the economy. Forexample, each dollar-a-barrel price increase is equivalent toa $20 million-a-day “tax” on the economy. Explain what thismeans.4. Capital M
- Suppose seller decreas price by 10% then hiw total revene will affect when ed =1.5 or ed=0.5 or ed=1As a consumer, how can you sustain your needs (basic commodities) despite the challenges in increased price of theseitems in the market? How can you makeuse of your imitative, and utilize your income to satisfy your demands at the most affordable prices?Edna is living in a retirement home where home where most of her needs are taken care of, but she has some discretionary spending. Based on the basket of goods in Table 22.5, by what percentage does Ednas cost of living increase between time 1 and time 2