Table 4-5 Price Quantity Supplied (Cases of water) (Dollars per case) Agua Springs Brook Mountain Canal Waters Dew Good 0.00 0 0 0 0 1.00 100 40 60 100 2.00 200 80 120 200 3.00 300 120 180 300 Refer to Table 4-5. If the four suppliers listed are the only suppliers in this market and the market quantity demanded is 600 cases when the price is $2.00, which of the following statements is correct? There is a shortage of 190 cases at a price of $2.00. The market is in equilibrium at a price of $2.00. There is a shortage of 180 cases at a price of $2.00. There is a surplus of 190 cases at a price of $2.00.

Table 4-5 Price Quantity Supplied (Cases of water) (Dollars per case) Agua Springs Brook Mountain Canal Waters Dew Good 0.00 0 0 0 0 1.00 100 40 60 100 2.00 200 80 120 200 3.00 300 120 180 300 Refer to Table 4-5. If the four suppliers listed are the only suppliers in this market and the market quantity demanded is 600 cases when the price is $2.00, which of the following statements is correct? There is a shortage of 190 cases at a price of $2.00. The market is in equilibrium at a price of $2.00. There is a shortage of 180 cases at a price of $2.00. There is a surplus of 190 cases at a price of $2.00.

Principles of Economics (MindTap Course List)

8th Edition

ISBN:9781305585126

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter7: Consumers, Producers, And The Efficiency Of Markets

Section: Chapter Questions

Problem 6PA

See similar textbooks

Similar questions

Table 4-5 Price (Dollars per case) Quantity Supplied (Cases of water) Aqueduct Springs Basin Mountain Cascade Waters Drop Good 0.00 0 0 0 0 2.00 100 40 60 100 4.00 200 80 120 200 6.00 300 120 180 300 13. Refer to Table 4-5. If the four suppliers listed are the only suppliers in this market and the market quantity demanded is 390 cases when the price is $2.00, which of the following statements is correct? a. There is a shortage of 90 cases at a price of $2.00. b. The market is in equilibrium at a price of $2.00. c. There is a surplus of 90 cases at a price of $2.00. d. There is a surplus of 80 cases at a price of $2.00.
Which of the following would restore efficiency in this market? A. A quantity limit of 10 B. A subsidy of $75 C. Auctioning 40 tradable permits D. Forbidding all trade in the market
Let us take a car market where we know(but the buyers don`t) that 40 percent of the cars are bad cars(lemons), the reservation price for demanders is 12 (thousand) for good cars and 10 (thousand) for bad cars, while the reservation price for the car suppliers is 10 thousand for a good car, and 8 thousand if it is a bad car. a-Discuss what the situation would be like if everybody could observe if a car is a good car, or a bad car(lemon)- how would the market reach equilibrium? b-Discuss what the situation would be like if only sellers knew the true character of the car( good or bad) whereas the buyers only know the average car quality? c-Why would the second situation create a partial unraveling of the market? What are the only cars that can be bought and sold? d-Prove why the in question 3b equilibrium is a suboptimal outcome? e-Why does a similar situation in the labor market result in a signaling equilibrium? Sketch your way of thinking, and show in which case there would be a…
The following table shows the number of cases of water each seller is willing to sell at the prices listed. Price per case Alpine Springs Brook Mountain Cascade Waters Dew Good $0.00 0 cases 0 cases 0 cases 0 cases $3.00 100 cases 40 cases 60 cases 100 cases $6.00 200 cases 80 cases 120 cases 200 cases $9.00 300 cases 120 cases 180 cases 300 cases a. If all four suppliers operate in this market, what is the market quantity supplied when the price is $9.00 per case? b. If all four suppliers operate in this market and the price of a case of water increases from $3.00 to $6.00, what is the change in the market quantity supplied
Use the data table below for this problem. Explain what happens in the market in each question: Q Demanded and Q Supplied, Surplus or Shortage by how many gallons. Question b: Use price support of $8.00. Question c: Change price ceiling to $6.00. Do not submit graphs Price per Gallon Quantity Demanded (millions of gallons) Quantity Supplied (millions of gallons) $8.00 200 400 $7.50 250 350 $7.00 300 300 $6.50 350 250 $6.00 400 200
The table shows the demand and supply schedules for tacostacos. If the quantity demanded of tacos decreases by 400 per hour at each price, the new price of a taco is $2.00. Total surplus decreases by $_____?. Price (dollars per taco) Quantity demanded Quantity supplied (tacostacos per hour) 0 800 0 1.00 700 100 2.00 600 200 3.00 500 300 4.00 400 400 5.00 300 500 6.00 200 600 7.00 100 700 8.00 0 800 Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.
Price per Ice-cream (Rs.) Demand for Ice cream (Qd) Supply for Ice cream (Qs)140 500 1500120 750 1200100 1000 100080 1250 75060 1500 60040 1750 300 (i) What is the maximum price that consumer is willing to pay for 1500 bottles ? (ii) What is the minimum price that producer is willing to accept for 1500 bottles ?
The following Table refers to four buyers’ willingness to pay for papadums. Each buyer is willing to buy at most one papadum and no more. Buyer Willingness to Pay Linc $17.00 Jeff $15.00 Frankie $9.00 Wash $3.00 a. Let the competitive market price be $4.00: calculate the total consumer surplus in the market at this price. b. Assume now that there is only a single seller of papadums, and she knows each buyer’s willingness to pay. Assume that this seller incurs a cost of $4.00 per unit of papadum produced (i.e., the marginal cost is constant). If she intends to maximise profits, how many papadums would this seller supply to the market, and what price would she charge? Remember, the price has to be the same for each unit sold. Hint: start at a price of $17 and calculate what profit would be. Then lower the price just enough to attract an additional buyer and calculate what the new profit would be. Repeat this until all four buyers are purchasing the…
05. Quantity demanded at price = 6 is a) 4 b) 8 c) 12 d) 14 e) 20
Please give a neat and step-by-step solution. Question: Given, P = 200 - 3Q P = 50 + 2Q What is the market equilibrium P and Q? If the price goes up by $10, how will the customers react? (Hint: Find PED and comment. First find new P* and Q*) If the government regulates the market by imposing 10% sales tax, what will be the change in producer surplus? Imagine there is no tax, and the market is competitive. What will be the profit maximization output level?
A steel mill, S, produces 20 tons of water pollution for every 100 tons of steel it produces. The downstream village of Watertown (WT) spends $150 per ton of water pollution from S to eliminate itsenvironmental harm. S is a price taker in an international market where the demand for steel is p = 100 – 3X and the market supply of steel is p = 40 + 3X. X is in units of one (1) million tons per day and p is the price in dollars per ton of steel. S has a daily increasing marginal cost of production function, MC = x.S's Total Cost function = x*x/2 where x is S’s daily output.(a) If S has no legal liability for its pollution, what is S’s daily production of steel?How does your answer here relate to the concept of private efficiency?(b) WT wants to bargain with S to reach an optimal agreement on this pollution. Assuming S is still not legally liable for its pollution and both S and WT do not use lawyers, would there be an agreement? How does your answer here relate the concept of private…
Please answer part (d) only A steel mill, S, produces 20 tons of water pollution for every 100 tons of steel it produces. The downstream village of Watertown (WT) spends $150 per ton of water pollution from S to eliminate its environmental harm . S is a price taker in an international market where the demand for steel is p = 100 – 3X and the market supply of steel is p = 40 + 3X. X is in units of one (1) million tons per day and p is the price in dollars per ton of steel. S has a daily increasing marginal cost of production function, MC = x. S's Total Cost function = x*x/2 where x is S’s daily output. (a) If S has no legal liability for its pollution, what is S’s daily production of steel? How does your answer here relate to the concept of private efficiency? (b) WT wants to bargain with S to reach an optimal agreement on this pollution. Assuming S is still not legally liable for its pollution and both S and WT do not use lawyers, would there be an agreement? How does yo ur answer here…