Reference no: EM13214290
A) In the market above, suppose that government officials set the price at $60. Describe the resulting outcome.
B) In the market above, suppose that government officials set the price at $20. Describe the resulting outcome.
C) Suppose that the market (in the graph above) is initially in equilibrium. Assume that consumer preferences shift and people want more of this product, and, at the same time, producers get an improvement in technology which lowers their production costs. Describe the resulting impact on equilibrium price and quantity.
D) Suppose a supply increase causes the equilibrium to shift from the one above so that the equilibrium quantity changes from that in the diagram to an equilibrium quantity of 200. What is the elasticity of demand (using the initial-value method) along the above demand curve as you move from the original equilibrium point to a quantity of 200?
E) Based upon your answer in 7D), is the demand curve elastic or inelastic in this region? Briefly explain.
F) Based upon your previous answers, does the total revenue for producers in the market increase or decrease as the quantity moves from the original equilibrium point to 200 (assuming all goods are sold)? Briefly explain.
G) Suppose that the market (in the graph above) is initially in equilibrium. Assume that government officials impose a tax causing supply to intersect demand at $60. If the tax was $40, do consumers bear the entire burden of this tax?
How the laffer curve can have an inverted u-shape
: If leisure is a normal good, the Laffer Curve can have an inverted U-shape only if leisure and consumption are (at least at some point) sufficiently substitutable such that the substitution effect (on leisure) outweighs the wealth effect (on leisu..
|
Explain what is the remaining ag+ ion concentration
: what is the remaining Ag+ ion concentration and is precipitation complete? The solubility product constant of AgBr is 5.0 × 10-13.
|
Explain a buffer was prepared by adding ammonium nitrate
: A buffer was prepared by adding 2.4 g of ammonium nitrate to 100.0 mL of 0.30 M ammonia (Kb = 1.8 × 10-5). To this solution was then added 10.0 mL of 0.30 M sodium hydroxide
|
Is the provision of the fireworks display efficient
: A five-person city is debating the provision of the annual July 4th Fireworks Display that everyone in the city would be able to enjoy. The cost of providing the display is fixed at $250. The willingness to pay for the festival is given in the fol..
|
Do consumers bear the entire burden of the tax
: Suppose that the market (in the graph above) is initially in equilibrium. Assume that consumer preferences shift and people want more of this product, and, at the same time, producers get an improvement in technology which lowers their production ..
|
What is the socially optimum level of practice for the band
: Gina was in a garage band when she was in high school, and the only time they could find to practice was on Saturday morning (much to the dismay of her neighbors.) Suppose the band received $49 in internal benefit (i.e., happiness) from practicing..
|
What is certified gemstones from tiffanys graduation gift
: Which of the following products and services are likely to encounter adverse selection problems: golf shirts at traveling pro tournaments, certified gemstones from Tiffany's graduation gift travel packages, or mail-order auto parts
|
State what is the concentration of protein a in the filtrate
: What is the concentration of protein A in the filtrate, as well as the concentrations of proteins B and C in the filtrate and retentate?
|
Determine probability that cool-aire will incur os
: Cool-Aire Corporation manufactures a line of room air conditioners. Its break-even sales level is 33,000 units. Sales are approximately normally distributed. Expected sales next year are 40,000 units with a standard deviation of 4,000 units.
|