How many driveways will be shoveled in equilibrium

Reference no: EM131072513

Four teenagers live on your street. Each is willing to shovel snow from one driveway each day. Their "willingness to shovel" valuations (supply) are: Jean, $10; Kevin, $9; Liam, $7; Margaret, $5. Several households are interested in having their driveways shoveled, and their willingness to pay values (demand) are: Jones, $8; Kirpinsky, $4; Lafleur, $7.50; Murray, $6.

(a) Draw the implied supply and demand curves as step functions.

(b) How many driveways will be shoveled in equilibrium?

(d) If a new (wealthy) family arrives on the block, that is willing to pay $12 to have their driveway cleared, recompute the answers to parts (a), (b), and (c).

Reference no: EM131072513

Questions Cloud

In which case are daycare and other goods substitutes : First, replicate this figure with one budget constraint and one indifference curve that together define a tangency (equilibrium) solution.

What should be included in the plan of care : What other assessments should be included for this patient? What questions should the nurse ask with regard to the abdominal pain?

How might two different theoriest explain john or sam : How might two different theoriest explain John or Sam? What would they say about personality? Development? etc, There are 5 other concepts (at minimum) that could be discussed form this essay.

Develop a process model of the following small job shop : Develop a process model of the following small job shop. The shop processes two types of jobs in equal numbers. The time between job arrival is exponentially distributed with a mean of 3 hours.

How many driveways will be shoveled in equilibrium : How many driveways will be shoveled in equilibrium?

Critical reflections from business perspectives : GB500 How have your learning experiences and the major knowledge and skills you have developed during this subject affected you - What impact have these had on your current job and your attitude to work?

Calculate the tax revenue generated and also the deadweight : Calculate the tax revenue generated, and also the deadweight loss.

Is this new demand curve more or less elastic : Is this new demand curve more or less elastic than the original at the equilibrium?

Create a six-panel brochure that covers the apa guidelines : Create a 6-panel brochure that covers the APA guidelines and expectations for your course according to your reading and the current version of the APA manual.

User Account

All Pages