Assume that the market for gasoline in Chicago is competitive and that on a given day...
Assume that the market for gasoline in Chicago is competitive and that on a given day the market price is $4.00 (per gallon) and that 20,000 gallons are sold.
a. Draw a diagram of the Chicago gasoline market (i.e., supply and demand), carefully labeling all axes, curves, and numbers.
b. Explain, both verbally and graphically, what would happen to the price of gas in Chicago if a new war in the Middle West caused a drastic cutback in the supply of oil. (Note: oil is an input into the production of gasoline. A change in the supply of oil is not the same thing as a change in the supply of gas, but…)
c. Explain, both verbally and graphically, what would happen to the price of gas in Chicago if a new economic recession caused people to drive a lot less.
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Assume that the market for gasoline in Chicago is competitive
and that on a given day...
The demand schedule given below is for the market for gasoline in a town. The marginal...
The demand schedule given below is for the market for gasoline in a town. The marginal cost of supplying gasoline is constant at $2 per gallon. Assume that there are no fixed costs. part a: If the market is competitive what will be the price charged for a gallon of gasoline and what will be the gas stations economic profits? part b: If there is only one gas station in town what price will it charge and what will be...
Suppose that, in a competitive market without government regulations, the equilibrium price of gasoline is $3.00...
Suppose that, in a competitive market without government regulations, the equilibrium price of gasoline is $3.00 per gallon. Complete the following table by indicating whether each of the statements is an example of a price ceiling or a price floor and whether it is binding or nonbinding. Statement Price Control Binding or Not The government prohibits gas stations from selling gasoline for more than $2.80 per gallon. Due to new regulations, gas stations that would like to pay better wages...
Price (cents per gallon) 90 100 110 120 130 140 150 Quantity Demanded (thousand gallons per...
Price (cents per gallon) 90 100 110 120 130 140 150 Quantity Demanded (thousand gallons per week 80 70 60 50 40 30 20 Quantity Supplied (thousand gallons per week 20 30 40 50 60 70 80 A market research team has come up with the demand and supply schedules for gasoline in Motorville in the table above. Use these data to analyze the situation in the market for gas in Motorville a) Draw a figure showing the demand curve...
Long-Run Firm Supply. The retail market for unleaded gasoline is fiercely price competitive. Consider the situation...
Long-Run Firm Supply. The retail market for unleaded gasoline is fiercely price competitive. Consider the situation faced by a typical gasoline retailer when the local market price for unleaded gasoline is $1.80 per gallon and total cost (TC) and marginal cost (MC) relations are TC = $40,000 + $1.64Q + $0.0000001 Q2 MC = ƏTC/2Q = $1.64 + $0.0000002Q and Q is gallons of gasoline. Total costs include a normal profit. A. Using the firm's marginal cost curve, calculate the...
You are given the following data on P and O for gasoline both before and affer the imposition of a per gallon tax...
You are given the following data on P and O for gasoline both before and affer the imposition of a per gallon tax on producers in the local market for gasoline Q 40 gallons -35 gallons -$3/gallon $4/gallon Before the Tax After the Tax Part C: Using this elastioity value, fit the given data instead into a demand function of the constant elasticity form Using this elasticity value, the constant elasticity demand function would be OA QD 48.46 P-1 B....
6. Short-run perfectly competitive equilibrium Consider a perfectly competitive market for wheat in Chicago. There are...
6. Short-run perfectly competitive equilibrium Consider a perfectly competitive market for wheat in Chicago. There are 90 firms in the industry, each of which has the cost curves shown on the following graph: ? 100 90 MC BO 70 60 ATC 50 COST (Cents per bushel) 40 30 20 AVC 10 0 O 5 10 15 20 25 30 35 QUANTITY OF OUTPUT (Thousands of bushels) 40 45 50 The following graph shows the market demand for wheat. Use the...
Assume that the perfectly competitive market for ethanol is in long-run equilibrium. Now suppose that the...
Assume that the perfectly competitive market for ethanol is in long-run equilibrium. Now suppose that the price of gasoline, a substitute for ethanol, increases. Explain what will happen in the market for ethanol. 1) Describe how this change will affect short-run economic profits. 2) What will happen to the number of firms producing ethanol in the long run? 3) How will price and output in this industry adjust in the long run?
i think i have the right idea here, but if someone could point me in the...
i think i have the right idea here, but if someone could point
me in the right direction before i start filling it out I would
REALLY appreciate it.
Assignment: Supply and Demand Changes - Part 1 Principles of Macroeconomics Suppose we are analyzing the market for gasoline. Graphically illustrate the impact each of the following would have on demand or supply. Show how equilibrium price and quantity have changed on the diagram and beside the diagram, ceteris paribus. a....
Discussion 2: market price SLING KIM 1 Section According to the article, "Global Markets Stagger ---Dow...
Discussion 2: market price SLING KIM 1 Section According to the article, "Global Markets Stagger ---Dow plunges 7.8%, suffering worst drop since 2008 ... Oil prices post biggest slide since Gulf War in 1991 ---Yield on 30-year bond falls below 1% for first time" oil prices went down the most since the Gulf War in January 1991. The plunge in oil prices was caused by a price war between Saudi Arabia and Russia. It also contributed to a sharp decline...
2. Consider the global market of oil, which has become quite competitive, so you can rely...
2. Consider the global market of oil, which has become quite competitive, so you can rely on the supply and demand graph . A group of oil producing countries (OPEC) would like to impose a price floor, to prevent the price from reaching a low equilibrium level. Show graphically the effect of a successful price floor on oil buyers, sellers, and society at large. In recent years, the number of new oil producers has risen considerably (one reason among many...
The demand schedule given below is for the market for gasoline in a town. The marginal cost of supplying gasoline is constant at $2 per gallon. Assume that there are no fixed costs. part a: If the market is competitive what will be the price charged for a gallon of gasoline and what will be the gas stations economic profits? part b: If there is only one gas station in town what price will it charge and what will be...
Suppose that, in a competitive market without government regulations, the equilibrium price of gasoline is $3.00 per gallon. Complete the following table by indicating whether each of the statements is an example of a price ceiling or a price floor and whether it is binding or nonbinding. Statement Price Control Binding or Not The government prohibits gas stations from selling gasoline for more than $2.80 per gallon. Due to new regulations, gas stations that would like to pay better wages...
Price (cents per gallon) 90 100 110 120 130 140 150 Quantity Demanded (thousand gallons per week 80 70 60 50 40 30 20 Quantity Supplied (thousand gallons per week 20 30 40 50 60 70 80 A market research team has come up with the demand and supply schedules for gasoline in Motorville in the table above. Use these data to analyze the situation in the market for gas in Motorville a) Draw a figure showing the demand curve...
Long-Run Firm Supply. The retail market for unleaded gasoline is fiercely price competitive. Consider the situation faced by a typical gasoline retailer when the local market price for unleaded gasoline is $1.80 per gallon and total cost (TC) and marginal cost (MC) relations are TC = $40,000 + $1.64Q + $0.0000001 Q2 MC = ƏTC/2Q = $1.64 + $0.0000002Q and Q is gallons of gasoline. Total costs include a normal profit. A. Using the firm's marginal cost curve, calculate the...
You are given the following data on P and O for gasoline both before and affer the imposition of a per gallon tax on producers in the local market for gasoline Q 40 gallons -35 gallons -$3/gallon $4/gallon Before the Tax After the Tax Part C: Using this elastioity value, fit the given data instead into a demand function of the constant elasticity form Using this elasticity value, the constant elasticity demand function would be OA QD 48.46 P-1 B....
6. Short-run perfectly competitive equilibrium Consider a perfectly competitive market for wheat in Chicago. There are 90 firms in the industry, each of which has the cost curves shown on the following graph: ? 100 90 MC BO 70 60 ATC 50 COST (Cents per bushel) 40 30 20 AVC 10 0 O 5 10 15 20 25 30 35 QUANTITY OF OUTPUT (Thousands of bushels) 40 45 50 The following graph shows the market demand for wheat. Use the...
i think i have the right idea here, but if someone could point
me in the right direction before i start filling it out I would
REALLY appreciate it.
Assignment: Supply and Demand Changes - Part 1 Principles of Macroeconomics Suppose we are analyzing the market for gasoline. Graphically illustrate the impact each of the following would have on demand or supply. Show how equilibrium price and quantity have changed on the diagram and beside the diagram, ceteris paribus. a....
Discussion 2: market price SLING KIM 1 Section According to the article, "Global Markets Stagger ---Dow plunges 7.8%, suffering worst drop since 2008 ... Oil prices post biggest slide since Gulf War in 1991 ---Yield on 30-year bond falls below 1% for first time" oil prices went down the most since the Gulf War in January 1991. The plunge in oil prices was caused by a price war between Saudi Arabia and Russia. It also contributed to a sharp decline...
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