The demand schedule for the lobster market is linear. The equilibrium quantity of lobster is 7,363 and the equilibrium price of lobster is $11. the quantity demanded of lobster is 9,139 when the price drops to $5. What is the value of consumers surplus in the lobster market?

Q: When wealth increases, the supply of loanable funds demanded for loanable funds decreases; increases…

A: Loanable fund market consists of supply and demand of loanable funds.  The supply of loanable fund…

Q: a. Complete the table below, which shows the costs and revenues of Solo the monopolist. (You may…

A: A firm maximizes profit at the point where MR = MC.  Profit is total revenue minus total cost.

Q: Refer to the following table. Suppose strawberries cost $1 and apples cost $2. SHow all the formulas…

A: Marginal utility is the change in utility with an additional unit of consumption.  MU per dollar is…

Q: Suppose Rainbow Bank has $12000 in assets ($3600 worth in mortgages and $8400 worth in treasuries)…

A: Given information Bank's asset is $12000  Bank's liabilities are $7500 -----------------------…

Q: 2- If a 3D printer increased in cost at exactly the inflation rate, what was the inflation rate if…

A: Inflation is the increase in price level over the no. of years.  Inflation rate measures the change…

Q: The Phillips curve in Lowland takes the form of π = 0.04 – 0.5 (u – 0.05), where π is the actual…

A: The Phillips curve shows that unemployment and inflation have a consistent negative relationship.…

Q: Which industry or industries below might operate in a monopolistically competitive market?  a. a…

A: Key features of Monopolistic Competition are as follows: There are a large number of buyers and…

Q: The overall CPI in 2019 and 2020 are 120.2 and 123.3 respectively. What was the annual inflation…

A: CPI in 2019 = 120.2 CPI in 2020 = 123.3 Annual rate of inflation  = (CPI in 2020 / CPI in 2019) - 1…

Q: C. In proving that there are earnings differentials caused discrimination, what three factors are…

A: When two employees who produce the same amount of output are paid differently on the basis of…

Q: Price ($ per unit of output) P, P. P₁ Q₂ Marginal Social Cost Q₂ Marginal Private Cost Marginal…

A: Socially optimal outcome is where Marginal social cost curve intersects the demand curve.…

Q: Economic analysis on a proposed project for widening a 20-mile urban freeway segment to accommodate…

A: B-C ratio (Benefit cost ratio) of a proposed project shows the relationship between the benefits…

Q: When we talk about massive energy generation through more traditional methods, such as hydroelectric…

A: The demand for energy generation is increasing daily because of the number of users. The rise in the…

Q: a. Draw the marginal revenue curve. Plot only the endpoints of the graph below. and revenues 210 180…

A: A profit-maximizing firm produces at the intersection of MR and MC to maximize profit.  Total…

Q: Assume perfect competition: Price: $48 Cost: TC = 5Q + 0.02Q² Solve for the profit-maximizing…

A: Perfect competition is a market structure economic model. It benefits consumers by keeping prices…

Q: Question 11 - Choose the best describes the four phases of the business cycle in the correct order?…

A: DISCLAIMER  “Since you have asked multiple question, we will solve the first question for you. If…

Q: The Federal Reserve can use expansionary/contractionary policy to shift the AD curve. Use the AD–AS…

A: Aggregate demand is the sum of Consumption spending , investment spending , government spending and…

Q: An individual values two goods, X and Y, according to the following utility function 1.14 U(X,Y)=3…

A: Given  Consumer utility function: U(X,Y)=30.25X-0.88+0.75Y-0.88-1.14 Price of good X (Px)=3  Price…

Q: 7. Classify each of the following as either a policy instrument or an intermediate target, and…

A: Policy: The actions taken by the government with the intention of influencing the economy of a city,…

Q: Veritas Inc. has decided to acquire a new Hydraulic Excavator. It has three options. Caterpillar:…

A: The benefit-cost ratio (BCR) is a measure showing the connection between the relative costs and…

Q: IC OM B D Life/years $320,000 $340,000 $400,000 $200,000 $45,000 $35,000 $110,000 $210,000 $20,000…

A: The benefit-cost ratio (BCR) is an indicator showing the connection between the relative costs and…

Q: The national consumption function of a country is C = 400 + 0.8Yd. The government only provides…

A: Given information: C = 400 + 0.8Yd -------> Consumption function.  Where C is the consumption Yd…

Q: xplain the reasons for which economic units will hold money from the viewpoints of the five…

A: Introduction: Money: People may exchange goods more easily in an economy if there is a system of…

Q: Suppose that Saudi Arabia produces 10,000,000 barrels of oil and 1,000 bushels of wheat each week.…

A: The exchange or trade of goods and services between different nations is referred to as…

Q: A competitive firm produces output given by the production function Q = L0.25 K0.25, whereL and K…

A: Given:Q = L0.25K0.25C = 2L + 4KPrice = 4PHP

Q: Using a "simple" T account balance sheet show and explain briefly how the Fed controls the money…

A: Money supply is the currency available in the economy for the transaction purpose. The central bank…

Q: If U.S. goods were more desirable in the rest of the world than they used to be, how would NCO and…

A: Net capital outflows (NCOs) is the difference between the acquisition of foreign assets by domestic…

Q: For the production function Q = 16L + 0.2K, returns to scale: O is decreasing can be increasing,…

A: Production function states the relationship between the input and output of goods in production by a…

Q: Most workplaces are subject to federal minimum wage guidelines, but restaurants are not. Currently,…

A: Owner might face principal agent problem that low wages disincentivize workers for effecient work

Q: Suppose a consumer’s preferences for goods Y and X can be represented by the utility function,…

A: A rational consumer will consume where the MUx/MUy = Px/Py  Here ,  MUx is the Marginal utility of…

Q: Suppose Matt’s income is $120. He plans to spend it on two goods bread and avacado. Prices are:   Pb…

A: The combination of goods and services that a consumer can receive for his or her limited budget is…

Q: 2. Pam is rich and at this high income level, her demand for good X is independent of income and…

A: CV, or compensating variation, is the change in income that returns the consumer to the original…

Q: : Use an AD–AS graph to illustrate the initial equilibrium and the short-run equilibrium after the…

A:

Q: Consider a competitive industry. The demand is Qp(P) = 20-P and the supply is Qs(P) = P (where…

A: Equilibrium in the market occurs at the intersection of the demand and supply curves.  Qd = 20 - P…

Q: Suppose that a firm has a revenue function given as R(x, y) = px + qy and a total cost function…

A: Given  Revenue function: R(x,y)=ρx+qy           ....(1) Cost function: C(x,y)=αx2+βy2…

Q: Suppose that in 2009 the money supply in Nickeltown was equal to $2000, velocity was 4, and the…

A: Real GDP is a macroeconomic statistic that measures the value of goods and services produced by an…

Q: Consider the market for paper. Suppose that a paper factory dumps toxic waste into a nearby river,…

A: Equilibrium is where the demand curve intersects the supply curve.    Socially optimal level of…

Q: in relation to measuring the performance of organizational units, please explain the 5 center types…

A: When compared to the expected outputs, an organization's actual output or outcomes are considered to…

Q: Goldenrod Bank's assets consist of $5600 in reserves and $14800 in bonds. In terms of liabilities,…

A: Reserve are the part of deposit that is kept by the bank.  Open market operation is used by the fed…

Q: In relation to individual performance measurement and reward, please explain the purposes thereof.…

A: The method of performance measurement is used to evaluate the efficacy and efficiency of…

Q: Your rich aunt is going to give you an end-of-year gift of $1,000 for each of the next 10 years. The…

A: Present worth refers to the discounted values of the future cash flows . Equivalent values of future…

Q: Demand for Corn Flakes is: P = 10 - Q. Supply of Kellogg's Corn Flakes is: P = 2 + Q. Now a generic…

A: Supply is generally means upward slope : as the price increases, suppliers are willing to produce…

Q: Suppose a monopolistically competitive firm has a marginal cost of $2 and a marginal revenue of $8.…

A: A Monopolistic Competitive firm maximixzes profit by producing output at a level where Marginal…

Q: Private plans were able to reduce overall drug expenditures to an extent due to: the ability of…

A: Private Plans are defined as health insurance plans that are offered by private insurance companies…

Q: Beowoof is the only kennel for two neighboring counties, East Liverpoodle and West Liverpoodle. The…

A: Price elasticity of demand is the responsiveness of quantity demanded change due to change in price.…

Q: You are given the following information about a model economy. The autonomous part of consumption is…

A: Autonomous spending is the sum of the components of aggregate expenditure which does not depend on…

Q: At what positive level of Q is marginal profit maximized? You found the profit function in (e)…

A: Profit function given to us is: Total Profit = 140Q + 2Q² - 1000 - (1/3)Q³ We differentiate the…

Q: As long as the monopolistically competitive firm is able to increase the quantity it produces and…

A: Economies of scale is when the increase in production decreases the cost of production per unit.…

Q: The objective of this sheet is to show you how prices and quantities are determined for each market…

A: A perfectly competitive firm will produce where P = MC  P is the market price  MC is the marginal…

Q: Suppose a consumer’s preferences for goods Y and X can be represented by the utility function,…

A: It is said that a consumer maximizes utility at that point where the slope of its indifference curve…

Q: Alpha and Beta are Bertrand duopoists facing demand Q(P)=25-P/2 and MC=$10. Assume prices must be in…

A: Bertrand duopoly is one of the models of oligopoly in which the firms compete on prices. They decide…

Equilibrium Price and Quantity

Equilibrium refers to a state of balance that comes about because there is equality in all forces.