Suppose Farmer Smith grows apples. The enitre market for apples is shown in the figure below. Assume the market for apples is perfectly competitive. Price of apples (dollars per basket) SONO O N 22- 20- 18- 16- 14+ 12- 10- 6- Supply 4- 2- 0- Demand 0 2 4 6 8 10 12 14 16 18 20 22 Quantity of apples (baskets per year in billions) Use the line drawing tool to draw the demand curve for farmer Smith's apples. Label this line 'Demand for Smith apples'. Carefully follow the instructions above, and only draw the required objects. Price of apples (dollars per basket) 22- 20- 18+ 16- 14- 2- 0- 0 4 6 8 10 12 14 16 18 20 Quantity of apples (baskets per year in 1000s)

Suppose Farmer Smith grows apples. The enitre market for apples is shown in the figure below. Assume the market for apples is perfectly competitive. Price of apples (dollars per basket) SONO O N 22- 20- 18- 16- 14+ 12- 10- 6- Supply 4- 2- 0- Demand 0 2 4 6 8 10 12 14 16 18 20 22 Quantity of apples (baskets per year in billions) Use the line drawing tool to draw the demand curve for farmer Smith's apples. Label this line 'Demand for Smith apples'. Carefully follow the instructions above, and only draw the required objects. Price of apples (dollars per basket) 22- 20- 18+ 16- 14- 2- 0- 0 4 6 8 10 12 14 16 18 20 Quantity of apples (baskets per year in 1000s)

Microeconomics: Principles & Policy

14th Edition

ISBN:9781337794992

Author:William J. Baumol, Alan S. Blinder, John L. Solow

Publisher:William J. Baumol, Alan S. Blinder, John L. Solow

Chapter15: The Shortcomings Of Free Markets

Section: Chapter Questions

Problem 2TY

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The output from a McDonalds restaurant would be classified as ________ production.A) quaternary B) primary C) secondary D) tertiary 2.Which of the following is NOT part of the opportunity cost of attending university? A) The alternative uses of the time you spend studying. B) The tuition fees that you or your government pays. C) The income that you could have earned if you did not attend university. D) The cost of the food that you consume while you are attending university 3.In a perfectly competitive market A) only producers are price makers. B) all producers and consumers are price takers. C) all producers and consumers are price makers. D) only consumers are price taker.
use diagramsa. What is the effect on the equilibrium price and quantity traded in market of theintroduction of a new technology that reduces costs of production for all firms?b. What is the effect on the equilibrium price and quantity traded in a market of a changein tastes that reduces the demand for the product?c. What is the effect on the equilibrium price and quantity traded in a market of theimposition of a tax per unit sold on suppliers?d. What is the effect on the equilibrium price and quantity traded in a market of thepayment of a subsidy per unit sold paid to suppliers?
Figure 5-4Suppose there are several paper mills producing paper for a market. These mills, located upstream from a fishing village, discharge a large amount of wastewater into the river. The waste material affects the number of fish in the river and the use of the river for recreation and as a public water supply source. Figure 5-4 shows the paper market. Use this Figure to answer the following question(s).Refer to Figure 5-4. What does S1 represent? Question 4 options: A) the market supply curve that reflects social cost B) the market supply curve that reflects only external cost C) the market supply curve that reflects only private benefit D) the market supply curve that reflects private cost
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arrow_forward Question Asked Jun 26, 2020 1 views Suppose one thousand (1000) units of product Aare produced by XYZ limited and the quantity demade for the product is two thousand (2000)units .All other things remaining constant,$18 change in price of product A results in change quantity demaded and supplied of 6 and 9 respectively.XYZ limited has a work force of 500 people who Pay income tax of $200 each .Supposed the government introduce a subsidy of $10 on each unit of A produced. Calculate the new equilibrium price and quantity
Suppose wheat is bought & sold in a competitive market. a) Below is the competitive market graph for wheat, with price in $/bushel and quantity in millions of bushels. Identify the equilibrium. (use the graph that is single attached as a photo) Now suppose that the government commits to buying 20M bushels of wheat, above and beyond the demand shown above. That commitment includes a promise to pay whatever equilibrium price happens with the additional purchase of 20M by the government. Part(b) are two ways to introduce and analyze the government’s purchase b) (a)One way to view the govt’s 20M is as extra demand above and beyond the market demand. Build this approach into the graph below left. (Use the quantity values on the graph - 0, 20, 40, 60, 80,100 – to help you get a reasonably accurate analysis.) Identify the new equilibrium P & Q (not as numbers, just position them on your graph).(b)A second way to view the govt’s 20M is as a reduction in the supply available to the…
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Russia trades chocolate with France, where it is a staple. The government of Russia places a price floor on their market for chocolate (assume that it is binding). They buy the surplus of 4 units from the producers and sell it in France. Refer to the graph to determine what happens when the government then sells the excess on the world market (to France). The government of Russia charges $7 in order to sell four units of chocolate in France. Determine who is better off and worse off.
A6 A functioning market exists when there is more than one firm on either the buying side of the selling side of the market for a particular product.
I would like to know just part d,e, and f. Thank you Suppose that the supply of tomato soup in a city is represented byQS = 100P – 10PT − 50where P is the price of tomato soup and PT is price of tomato needed to produce tomato soup. All prices are indollars and quantity is in liters.Assume that the current tomato price is $15.Suppose that the demand for the tomato soup is QD = 1000−60P + 0.3Iwhere P is the price of the tomato soup and I is a representative household’s income.Assume that at the equilibrium, income is $12000.a) What are the current equilibrium price and quantity of the tomato soup? Show the equilibrium on a detailedgraph.b) Suppose that income decreases to $10400. What is the new equation for the demand for tomato soup? Doesthis correspond to an increase or decrease in the demand for tomato soup? Show the effect of this event onthe equilibrium and the diagram you used in part (a)c) Start from the equilibrium in part a) and now suppose that the price of the tomato…