The government places a production fee on jelly beans. 7. According to the event above, which graph represents what will happen in the market for jelly beans? Jelly Beans Jelly Beans Jelly Beans D 09 D₁ 00 D Jelly Beans S₁ A B D What will happen to the quantity in the market? a. Increase b. Decrease c. Stay the same O S O

The government places a production fee on jelly beans. 7. According to the event above, which graph represents what will happen in the market for jelly beans? Jelly Beans Jelly Beans Jelly Beans D 09 D₁ 00 D Jelly Beans S₁ A B D What will happen to the quantity in the market? a. Increase b. Decrease c. Stay the same O S O

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

Chapter4: Supply And Demand: An Initial Look

Section: Chapter Questions

Problem 4DQ

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warring ( i just want the answer for C ) A- Given the following two equations:Qd = 150 – 3PQs = 70 + 2P Calculate the equilibrium price and the equilibrium quantity. Show all your work.B- Using the above two equations to find the values of Qd, Qs, the market situation (Shortage/Surplus/Equilibrium), and the Value of shortage or surplus if any, at the following prices.10, 15,20 and 25. C-If the consumer income increases by 20%, what will happen to the equilibrium price and quantity. warring ( i just want the answer for C )
One of the largest changes in the economy over thepast several decades is that technological advanceshave reduced the cost of making computers.a. Draw a supply-and-demand diagram to showwhat happened to price, quantity, consumersurplus, and producer surplus in the market forcomputers.b. Forty years ago, students used typewriters toprepare papers for their classes; today theyuse computers. Does that make computersand typewriters complements or substitutes?Use a supply-and-demand diagram to showwhat happened to price, quantity, consumersurplus, and producer surplus in the marketfor typewriters. Should typewriter producershave been happy or sad about the technologicaladvance in computers?c. Are computers and software complements orsubstitutes? Draw a supply-and-demand diagramto show what happened to price, quantity,consumer surplus, and producer surplus in themarket for software. Should software producershave been happy or sad about the technologicaladvance in computers?d. Does this…
Refer to the following expanded table . a. What is the equilibrium price? At what price is there neither a shortage nor a surplus? Fill in the surplus-shortage column and use it to confirm your answers. b. Graph the demand for wheat and the supply of wheat. Be sure to label the axes of your graph correctly. Label equilibrium price P and equilibrium quantity Q. c. How big is the surplus or shortage at $3.40? At $4.90? How big a surplus or shortage results if the price is 60 cents higher than the equilibrium price? 30 cents lower than the equilibrium price?
There are 100 sellers in the market for widgets: 40 people are willing to sell a widget at £10or more; 20 additional people are willing to sell a widget at £20 or more; 30 additional peopleare willing to sell a widget at £30 or more; and 10 additional people are willing to sell awidget at £50 or more. (a) For a range of prices from £0 to £70, draw the supply curve in a suitablylabelled graph. (b) The government will buy any amount of widgets for £40 or less. Draw thedemand curve. How many widgets are sold in equilibrium?
01. The equilibrium price and quantity in this market are (a) Pe= $2, Qe=18 (b) Pe= $4, Qe=16 (c) Pe= $14, Qe=12 (d) Pe= $12, Qe=8 02. Quantity supplied at price = 18 is (a) 4 (b) 8 (c) 12 (d) 16 (e) 20 03. Quantity demanded at price = 16 is (a) 4 (b) 8 (c) 10 (d) 16 (e) 20
1. The Smith family eats both meat and potatoes on a regular basis and we need to know how the family views these goods. If the price of meats rises and the family eats more potatoes, then the two goods must be a. Substitutes b. Complements c. Inferior d. Normal 2. Which of the following is not a determinant of Supply? a. Prices of resources b. Technology and productivity c. Prices of Complements d. Producers’ expectations e. The number of producers 3. In December, both the price of Christmas trees and the quantity of trees sold rises. Is this a violation of the Law of Demand? Explain your answer 4. Explain the following statement in terms of Supply and Demand: “When a war breaks out in the Middle East, the price of gasoline rises and the price of a used Cadillac falls”.
To help combat the high cost of avocados, assume a policy maker proposes a binding price ceiling on avocados in Maricopa County. The most likely result of this policy would be: () The price of avocados would rise and a surplus would occur O The avocados would now be more affordable for Maricopa County customers O The price of avocados would rise and a shortage would occur O The price of avocados would fall and a surplus would occur The price of avocados would fall and a shortage would occur
Illustrate the market for peanut butter when the scientists discovered that peanut butter is a good source of protein and vitamin B-6peanut.
Consider each of the scenarios before, and explain what the effect of the given changes would be on the market for the good in bold that was originally in equilibrium. State which curve(s) shift (supply, demand, both, neither), and whether price and quantity are higher or lower after the change, or if this is not possible to determine. (a) An increase in the cost of dorm rooms on the market for apartments in the U-district? (b) The government increases the consumption tax rate for consumersp by 5% on the market for Rolex watches? (c) The increase in price of milk on cakes? Note: The solution should not be hand written.
What is Shortage & Surplus; graphically show and explain?
There are 40 people living in a village each having preference over apples andshirts represented by U(a,b) = a1/3s2/3, where a and s are amount of applesin pounds and shirts consumed, respectively. The price of a shirt is $10. Each villager has $300 income. Apples are supplied to the village by a farmer, whose supply function is S(pa) = 1000pa.Part a1What is the equilibrium price of apples? How many pounds of apples does eachvillager consume?Part a2What is the aggregate net consumer surplus at the equilibrium?Part a3What is the price elasticity of demand at the equilibrium?Part b1Suppose 50 more people move in to the village. What is the equilibrium pricenow? Part b2Are consumers better or worse off now? Why? If a consumer is worse off, byhow much additional income he/she needs to be compensated in order to be aswell off as in Part a.
In the late 1990s, the town of Santa Monica, California, made it illegal for banks to charge people ATM Monica passed this law, Bank of America stopped allowing customers from other banks to use their ATI A banned "out-of-network" ATM usage. Let's imagine the effect of a full ban on out-of-network fees. a. In the Agure, indicate the new price (P) per out-of-network ATM transaction after the fee ban. Also clearly label the shortage (S1,S2). $ 4 F4 R 5 6 MacBook Air F6 Y b. Calculate the exact amount of producer and consumer surplus in the out-of-network ATM market in S & 7 U 8 Out-of-network fee ($) FO 5.0 4.0 3.0 2.0 1.0 0.0 Number of out-of-network ATM trans 9 DD Sup 0 Deman 0 F10 P