Which of the following explains "market failure" (or non-via O a. consumption-smoothing. O b. moral hazard. Oc. adverse selection. O d. reduced levels of "self-insurance." O e. diminishing marginal utility or benefit.
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- Consider the market for tea. Which of the following scenarios would definitely result in an increase in the price of tea?O a. A new study is published explaining the benefits of tea, and at the same time a new technology allowing for more efficient tea farming is discovered.O b. The price of coffee falls, and at the same time a new technology allowing for more efficient tea farming is discovered.O c. Consumers expect the price of tea to fall in the future, and at the same time a fire wipes out a significant portion of tea farms.O d. The price of coffee falls, and at the same time the cost of labor to farm tea decreases.Oe. A new study is published explaining the benefits of tea, and at the same time a fire wipes out a significant portion of tea farms.Suppose the market demand for sanitizer is given by Qd = 300 – 10P and the market supply for sanitizer is given by and Qs = 40P -200 where P= price (per sanitizer). a. Tabulate and graph the supply and demand schedules for sanitizer using GHC 5 through GHC 30 as the value of P.b. In equilibrium, how many sanitizers would be sold and atwhat price?c. What would happen if the price of sanitizer is set at GHC 20 or GHC 5?Explain the market adjustment process in both cases.Time remaining:00 :09 :39EconomicsUse the following to answer questions (29) - (31):In the town of “One Horse” there is one movie theater. Two groups of consumers, adults (A) andchildren (C), attend this theater. Suppose the demand for movies by adults is given by:QA = 50 - 0.50PA, where PAis price ofan adultmovie ticket(in cents)and QAis the numberofmovie tickets sold to adults atthe theater. Suppose the demand for movies by children is given by:QC = 20 - 0.50PC,where PCispriceofa children’s movie ticket(in cents)and QCis the numberofmovie tickets sold tochildren atthe theater. Also, imagine totalcostis fixed at$450, thus makingmarginalcostofprovidingonemore movie ticket to either an adult or a child constant at zero.[29]Ifthe movie theateris able to price discriminate amongits two groups ofconsumers, then itshouldcharge a higher price to group A.A.TrueB.False[30]Ifthemovie theateris able to price discriminate amongits two groups ofconsumers, then itsmaximum profit is closest in value…
- Which of the following is true about competitive equilibria in environments where the conditions of the first welfare theorem are satisfied? O a. We have to be able to represent the demand side of the economy by a representative consumer. O b. Consumer surplus is smaller than what would be estimated if it were measured on the market demand curve when goods are normal. O c. Producer surplus is zero in the long run when all firms share the same technology. O d. (a) and (b) are true O e. (b) and (c) are true. Of. (a) and (c) are true. O g. All of the above. O h. None of the above.[MUST SHOW WORK] Consider the above table for the market for oranges. A deep frost destroys many or the orange juice businesses to go put of business. As a result, quantity supplied decreases hper kg and the new equilibrium quantiy is.........? kg of oranges The new equilibrium price is .............? kg of oranges Select one: O A. 1.70;400 O B. 1.10; 700 O C. 1.20;650 O D. 0.90;400 O E. 1.50;500Assumed that the demand (D) for potato given by demand: Q = 1500 − 15P, where Q isquantity per month measured in kilos and P is price per kilo. 1. Supply is equals to 900 kilos one day, what will the price be?2. Supply were to fall to 300 kilos, what would the price be?3. The D for Potato shifts outward to Q = 2100 − 15P, what will be answer in part 1 and 2 change?4. Graph the results
- Economists say that a market where goods are not consumed by those valuing the goods most highly is O laissez-faire.. unequal. O inefficient. O rational.Praxilla, who lived in ancient Greece, derives utility from reading poems and from eating cucumbers. Praxilla gets 30 units of marginal utility from her first poem 27 units of marginal utility from her second poem 24 units of marginal utility from her third poem, and so on, with marginal utility declining by three units for each additional poem. Praxilla gets six units of marginal utility for each of her next three cucumbers consumed, five units of marginal utility for each of her next three cucumbers consumed, four units of marginal utility for each of the following three cucumbers consumed, and so on, with marginal utility declining by one for every three cucumber consumed. A poem costs three bronze coins hut a cucumber costs only one bronze coin. Praxilla has 18 bronze coins. Sketch Praxillas budget set between poems and cucumbers, placing poems on the vertical axis and cucumbers on the horizontal axis. Start off with the choice of zero poems and 18 cucumbers, and calculate the changes in marginal utility of moving along the budget line to the next choice of one poem and 15 cucumbers. Using this step-by-step process based on marginal utility, create a table and identify Praxillas utility—maximizing choice. Compare the marginal utility of the two goods and the relative prices at the optimal choice to see if the expected relationship holds. Hint: Label the table columns: 1) Choice, 2} Marginal Gain from More Poems, 3) Marginal Loss from Fewer Cucumbers, 4) Overall Gain or Loss, 5) Is the previous choice Optimal? Label the table rows: 1) 0 Poems and 18 Cucumbers, 2) 1 Poem and 15 cucumbers, 3) 2 Poems and 12 cucumbers, 4) 3 Poems and 9 Cucumbers, 5) 4 Poems and 6 cucumbers 6) 5 Poems and 3 Cucumbers, 7) 6 Poems and 0 Cucumbers.As a general rule, is it safe to assume that a change in the price of a good will always have its most significant impact on the quantity demanded of that good, rather than on the quantity demanded of miller goods? Explain.
- Explain the impact of each of the following scenarios on only the market for apples in Gauteng. >state whether each of the following scenarions will impact the demand or supply cirves for apples > state whether the impact will shift the curve or cause a movement along a curve > if is is a shift, state the direction of the shift and motivate your answer Q2..1 Eating apples is considered unhealthy ,ceteris paribus. Q2.2 The number of firms selling apples in Gauteng has decreased.a)Consider a demand curve of the form Qd = 20-2p where Qd is the quantity demanded of a good and p is the price of the good. Also consider a supply curve of the form Qs = 2p-4 where Qs is the quantity supplied. Graph these curves. At what values of P and Q do these curves intersect? b) Now suppose at each price individuals demand four more units of output, that is the demand curve shifts to Qd = 24-2p. Graph this new curves. Graph this new curve on the diagram drawn in part a) At what values of P and Q does the new demand curve intersect the supply curve identified in part a)The price of tea increases. At the same time, robots are developed which prove to lower the cost of production of coffee. In the market for coffee, we should expect to see curves shift. The supply curve will -- and the demand curve will --- O a. shift up-shift to the left O b. shift up - shift to the right c. shift down - shift to the left O d. shift down - shift to the right