There are two person in the cmmunity. Jack who has demand given as Pj=20-0.25qj and Mary demand given as Pm = 35-0.4qm. if the MC =15 Draw the two demand curves and market demand curves in the same graph Find the efficient market allocation Estimate the efficient price and determine the free riding.
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There are two person in the cmmunity. Jack who has demand given as Pj=20-0.25qj and Mary demand given as Pm = 35-0.4qm. if the MC =15
- Draw the two demand
curves and market demand curves in the same graph - Find the
efficient market allocation - Estimate the efficient price and determine the free riding.
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- Suppose there are three (3) people in a market for bottles of perfume; Mutumbu, Jasanu and Julius The individual demand for perfumes for each of these consumers is given as 10 bottles for Mutumbu, 15 bottles for Jasanu and 25 bottles for Julius at $60 per bottle for perfume. Thus, the market demand for perfumes if the market price is $60 is. (a)40 bottles (b)60 bottles (c)80 bottles (d) None of theb aboveThe equations below represent the inverse demand and supply curves for construction workers in Small City. Quantities are given in thousands of hours. pD= 75 − 2q, ps= 0.5qThe price and quantity of equilibrium in this market are p*= 15 and q*= 30. The city decides to establish a minimum wage (in effect, a price floor) equal to pf= 18. a. Do a welfare analysis comparing the equilibrium before and after the price floor. b. A neighboring city, called Big City, is going through a housing boom and has a high demand for construction workers. Big City is willing to hire as many hours of construction work as Small City can provide for a wage equal to Small City’s minimum wage (pf= 18). How does the hiring of Small City hourly construction workers by Big City developers affects total welfare in Small City? c. Assume that the minimum wage was removed from Small City, but Big City is still hiring all construction workers willing to work for $18/hour. Social norm dictates that construction workers…There are two consumers in the market for one good (with price P), A and B. Consumer A's inverse demand is given by P = -2QA+5 and consumer B's inverse demand is given by P = -QB+10. At a price of 5, the total quantity demanded is ________ a) 0 b) 0.5 c) 1 d) 1.5 e) 2 f) 2.5 g) 5
- Explain why voluntary transactions improve social welfare.Consider the market for apartments. The market price of each apartment is $300,000, and each buyer demands no more than one apartment. Suppose that Lorenzo is the only consumer in the apartment market. His willingness to pay for an apartment is $480,000. Based on Lorenzo's willingness to pay, the following graph shows his demand curve for apartments. Shade the area representing Lorenzo's consumer surplus using the green rectangle (triangle symbols).Be fast Suppose there are three (3) consumers in a market for bottles of perfume; Mutumbu, Jasanu and Julius The individual demand for perfumes for each of these consumers is given as 10 bottles for Mutumbu, 15 bottles for Jasanu and 25 bottles for Julius at $60 per bottle for perfume. Thus, the market demand for perfumes if the market price is $60 is: (a)40 bottles (b)60 bottles (c)80 bottles (d) None of the above
- Kindly help on these two question... The result that every competitive equilibrium is pareto efficient. a) the second fundamental theorem of welfare economics. b) Edgeworth's condition c) The first fundamental theorem of welfare economics d) Waras's law 2) Assume that there are two consumers ( A and B) in an economy that have preferences that can can be represented as cobb-douglas utility functions. Also assume that there are two firms that have concave production possibility frontiers over goods x and y . Which of the following conditions must be true for an allocation to be distributivity efficient? Select all that apply. a) all goods in the economy are consumed. b) producers must be operating on their production possibilities frontier. c) all consumers must have marginal rates of substitution that are equal. d) all producers must have marginal rates of transformation that are equal . e) consumers must value goods at the margin at the same rate it costs society to produce themShow the surplus on this diagram for the hand sanitiser market during the COVID pandemicConsider the market for apartments. The market price of each apartment is $375,000, and each buyer demands no more than one apartment. Suppose that Rajiv is the only consumer in the apartment market. His willingness to pay for an apartment is $600,000. Based on Rajiv's willingness to pay, the following graph shows his demand curve for apartments. Shade the area representing Rajiv's consumer surplus using the green rectangle (triangle symbols). Part 2 Now, suppose another buyer, Simone, enters the market for apartments, and her willingness to pay is $450,000. Based on Simone's and Rajiv's respective willingness to pay, plot the market demand curve on the following graph using the blue points (circle symbol). Next, shade Rajiv's consumer surplus using the green rectangle (triangle symbols), and shade Simone's consumer surplus using the purple rectangle (diamond symbols). Note: Plot your points as a step function in the order in which you would like them connected. Line…
- Suppose the market demand for Omani Halwa is given by Qd = 400 – 20 P and the market supply for Omani Halwa is given by Qs = 20 P – 200, where P = price (per Omani Halwa). Graph the supply and demand schedules for Omani Halwa using $10 through $20 as the value of P. In equilibrium, how many Omani Halwas would be sold and at what price? What would happen if suppliers set the price of Omani Halwa at $20? Explain the market adjustment process. “A household’s decision about what quantity of a particular output, or product to demand depends on a number of factors.” Discuss the major factors affecting the demand.A study of a country's colleges and universities resulted in the demand equation q = 20,000 − 2p, where q is the enrollment at a public college or university and p is the average annual tuition (plus fees) it charges.† Officials at Enormous State University have developed a policy whereby the number of students it will accept per year at a tuition level of p dollars is given by q = 5,200 + 0.5p. Find the equilibrium tuition price p and the consumers' and producers' surpluses at this tuition level. What is the total social gain at the equilibrium price? HINT [See Example 3.] equilibrium tuition price p = $ consumers' surplus CS = $ producers' surplus PS = $ total social gain $Gasoline for cars is produced in a market. There are equations for the Supply and Inverse Demand of car gasoline that model its Supply and Demand graph. These equations are (for supply), P = 20 + Qs, and (for Inverse Demand), P = 80 - Qd. Due to gasoline shortages, some sellers may be able to get access to more gasoline and produce it better than others. As a result, the federal government placed a quantity restriction of 15 units on the sellers. (Part I) Draw the market equilibrium with the government intervention (Q** and P**) of the quantity restriction. Please label the graph for slopes, the equilibrium point, etc. (Part II) What is the market equilibrium without the intervention of the government? (Part III) The government decided that the previous quantity restriction was not sufficient. So, it increased the restriction from 15 units to 20 units. Consequently, what is the new market equilibrium point with this new intervention? It is not necessary to label this point on the…
