Reference no: EM131019302
Quiz 2-
Assume that all demand and supply curves are linear. Use the following information for the next SIX questions.
Suppose you have the following information about a demand curve.
1. What is the equation for the demand curve?
Suppose that you also know that the supply curve is P = 4 + .2Q
2. What is the equilibrium price and quantity?
3. Determine consumer surplus for this market.
4. Determine producer surplus for this market.
5. Suppose that the government introduced a price floor in this market, and set it at $5.00. Determine the impact of this price floor on this market: be specific about whether the price floor creates a shortage or a surplus and provide a numeric measure with your answer.
6. Suppose that the government introduced a price ceiling in this market, and set it at $5.00. Determine the impact of this price ceiling on this market: be specific about whether the price ceiling creates a shortage or a surplus and provide a numeric measure with your answer.
7. The iPhone and the Blackberry are substitute goods in the smart phone market. What happens to the demand for iPhones when the price of the Blackberry decreases? Draw a graph of this scenario. Clearly label your axes, and indicate which curves are shifting (if any). Label the new equilibrium point. Also be sure to describe any indeterminacy which may occur and would not be apparent on your graph.
8. (This question is worth 1/2 of a point) Chocolate syrup and ice cream are complementary goods. Consider the effect of both of the following on the ice cream market. First, the price of chocolate syrup increases. Additionally, the food and drug administration endorses a new hormone which allows cows to produce more milk than before. What happens in the ice cream market? Draw a graph of this scenario. Clearly label your axes, and indicate which curves are shifting (if any). Label the new equilibrium point. Also be sure to describe any indeterminacy which may occur and would not be apparent on your graph.
9. Consider the shrimp market. A friend of yours suggests that because of the recent oil spill, the supply of shrimp will decrease and the price will increase. However, when you draw a supply curve for shrimp, you notice that higher quantities supplied are associated with higher prices, and that lower quantities supplied are associated with lower prices. Is your friend right? What is going on here? A brief answer is all that is required.
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Explain the effects of such a policy on the market
: Find the equilibrium price and quantity - Find the consumer surplus and the producer surplus and find the equilibrium price and quantity on this market.
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Calculate number of units of pasta imports for pasta land
: Using the point elasticity formula, calculate the price elasticity of demand of pasta at the equilibrium point. Now, assume that the world price of pasta is $60. Calculate the number of units of pasta imports for Pasta Land at this world price
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Find the equation for a circle with a radius of nine
: Find the equation for each of the following items below- A line that passes through (6,2) and has a slope of 2. A line that passes though the points (2,4) and (8,16) and A circle with a radius of 9 and a midpoint at (3,3).
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What is the definition of comparative advantage
: Draw Besaid Island's production possibility frontier with bicycles on the vertical axis and wheat on the horizontal axis - What is the definition of comparative advantage?
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Determine producer surplus for this market
: Suppose you have the following information about a demand curve. What is the equilibrium price and quantity? Determine consumer surplus for this market. Determine producer surplus for this market
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How many shares need to be sold
: What are the total indirect costs? (Enter the whole number for your answer, not millions (e.g., 1,234,567). Round your answer to the nearest whole number (e.g., 1,234,567).)
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Find tplh for each case
: For a fair comparison, let the current source I = VDD/RD, which is the initial current available to charge the capacitor in the case of a resistive load. Find tPLH for each case, and hence the percentage reduction obtained when a current-source lo..
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What is the expected range of id obtained
: An NMOS transistor with kn = 0.4 mA/V2 and a nominal Vtn of 0.4 Vis to operate in saturation at ID =0.2 mA. If Vtn can vary by as much as ±10%, what is the expected range of ID obtained?
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Determine the inn''s break-even point in dollars
: Determine the inn's break-even point in number of rented rooms per month.
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