Question

20 Points Each. Hand draw answers and upload. Consider a city that has cell phone case stands operating throughout the midtown area. Suppose each vendor has a marginal cost of $5.00 per case and no fixed cost. Suppose the maximum number of cell phone cases that any one vendor can sell is 70 per day. 1. If the price of a cell phone case is $15.00, how many cases does each vendor want to sell? B. If the industry is perfectly competitive, will the price remain $15.00 per case? If not, what will the price be? Why? B. If each vendor sells exactly 70 cell phone cases a day and the demand for cell phone cases for vendors in the city is Q=1000-20P, how many vendors are there? 2. The domestic supply and demand curves for washing machines are as follows: Supply: P=2800+5Q Demand: P=4300-50 where P is the price in dollars and the Q is the quantity in millions. The U.S. is a small producer in the world washing machine market. Where the current price (which will not be affected by anything we do) is $3,000. Congress is considering a tariff of $500. A. Calculate and graph all points for the domestic market for washing machines price and quantity equilibrium. B. Find the domestic quantity demanded and supplied of washing machines that will result if the price imposition of $3,000 is imposed. Show on graph. Explain. C. Find the domestic quantity demanded and supplied of washing machines that will result if the s500 tariffe

Answer 1

it Price is 2000 0.5 = P = 2800 + 50 3000 2 280 +370 200 250 0240 os a 430 52 Jovo uzw-re 13 w-502260 Pa

Supply Чо чо 320 Phu 3+ тоо о 260 Зоез Чо Demand more X Во 1lo [66 2оо хоно 320 aty E is equilibrium point when ODOS со ISO Рnu2 3ъ Зарраму ЧО 80 | ооо 300 2 36 км Zow чо-о Demand Pha чого 24 370o goo 373 31 2tto (60 100 ҷо No Чакты ччю 27tro 3 it price is 3000$ then aty supply isto & cety Demal abo

1) 2 If each vendor wants to sale exactly to cell Phone cases in a day. @ 1000 -20p ů demand fun". P= 15$ ginen 02 1000 - 2015) 1000 300 - 700 700 eachuendor sale to tell then how many uendors lo vender 10 Domestic supply f. demand in , Po 2800 + 50 Po 4300 - 50 when assumed curent Phu 30008 tariff soos equilibrium 2800 t 50 Pro 4300-50 4300 - 2300 ISOO 150 Put value of a = 110 into eqa B P=28w tre Pa28wt 700 50+50 - 100 pa 3550