1. Consider the market for cars. Explain what will happen to the supply of cars if...
1. Consider the market for cars. Explain what will happen to the supply of cars if there is an improvement in car manufacturing technology. How does price, quantity, producer surplus, and consumer surplus get affected (increase or decrease)? Do we know for sure if producer surplus will increase or decrease? Now assume that the city builds new bike paths and increases the demand for biking, what will happen to the demand for cars? What happens to the price and quantity of cars?
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1. Consider the market for cars. Explain what will happen to the
supply of cars if...
1. If demand deceases and supply remains constant, what happens to the market equilibrium? A. Quantity...
1. If demand deceases and supply remains constant, what happens to the market equilibrium? A. Quantity and price both rise. B. neither price or quantity will change C. Quantity and price both fall. D. Quantity rises and price falls. 2. A positive statement is A. an opinion B. a value judgement. C. can be shown to be correct or incorrect. D. based upon what can be demonstrated to be true. 3. If a technology change reduces a company's production costs,...
An increase in the demand for sports cars and an increase in the supply of sports...
An increase in the demand for sports cars and an increase in the supply of sports cars occur together. What is the effect on the price and quantity of sports cars? create a surplus or a shortage of An increase in the demand for sports cars together with an increase in the supply of sports cars_ sports cars at the original price. The equilibrium price of sports cars O A. will not; will not change O B. might; will rise...
6b. Price Supply * Pmax Demand Quantity/period Imax This is the market for apartments in City...
6b. Price Supply * Pmax Demand Quantity/period Imax This is the market for apartments in City A. Note that the equilibrium price is P'. A widely practiced form of price control in many economies has been rent control. Because governments seek to provide access to rental accommodation for low-income families who cannot afford high city rentals. The local government decides that P is too high and enforces a price ceiling (a maximum prices of P max that landlords can charge....
do part b Figure 1: Market for Musthaves Price $40 Supply 24 1X1 Demand 32 48...
do part b
Figure 1: Market for Musthaves Price $40 Supply 24 1X1 Demand 32 48 72 Quantity Question 1: Use Figure 1 (The Market for Musthaves) to answer the following: b) Suppose that an event causes Musthaves to become a necessary item for most people. As a result, the number of buyers of Musthaves increases significantly and the equilibrium price rises to $28. i. Show graphically why this happens. ii. What is the new consumer surplus? How does it...
Consider the market for plan tickets to the Caribbean. A bad winter is Eastern and central...
Consider the market for plan tickets to the Caribbean. A bad
winter is Eastern and central Canada increases the demand for
tropical Caribbean vacations, shifting the demand curve to the
right. The supply curve stays constant. Total surplus will:
Consider the market for plane tickets to the Caribbean. A bad winter in E stays constant. Total surplus will: O increase because consumer surplus increases. O decrease because both consumer and producer surplus decrease. O increase because both consumer and producer...
now? 3. Use the graph below to answer the following questions. 54.00 Supply 3.00 Demand 10,000...
now? 3. Use the graph below to answer the following questions. 54.00 Supply 3.00 Demand 10,000 20,000 Quantity Be sure to show all calculations. (25 points) a. What is the value of the consumer surplus after a binding price ceiling? b. What is the value of deadweight loss after a binding price ceiling? c. What is the value of the producer surplus before a binding price ceiling? 1) A Moving to the next question prevents changes to this answer. Question...
3. The market supply and demand for a product are shown in the diagram below. O...
3. The market supply and demand for a product are shown in the diagram below. O PRICE $6 Supply Demand 080 200 QUANTITY (a) Is the price elasticity of supply less than one, equal to one, or greater than one? Explain. (b) Calculate consumer surplus at the equilibrium price. Show your work. (C) Now suppose the government imposes a per-unit tax of $1 on producers. (i) What happens to total revenue received by producers after they pay the tax to...
****IMPORTANT**** PLEASE ONLY PARTS F AND G. 1) Consider the market for new cars. a. Identify...
****IMPORTANT**** PLEASE ONLY PARTS F
AND G.
1) Consider the market for new cars. a. Identify four factors that may infl uence the demand for new cars (eit her movements along the demand curve or shifts of the demand curve). (2pts) b. Identify four factors that may infl uence the supply of new cars. (2pts) c. If the cost of steel goes up, how will supply or demand (if either) be affected? What wil happen to the equilibrium price and...
Consider the market for mountain bikes. The following graph shows the demand and supply for mountain...
Consider the market for mountain bikes. The following graph shows the demand and supply for mountain bikes before the government imposes any taxes First, use the black point (plus symbol) to indicate the equilibrium price and quantity of mountain bikes in the absence of a tax. Then use the green point (triangle symbol) to shade the area representing total consumer surplus (CS) at the equilibrium price. Next, use the purple point (diamond symbol) to shade the area representing total producer...
Consider a market with demand and supply functions: Supply function: ? = 40? − 40 Demand...
Consider a market with demand and supply functions: Supply function: ? = 40? − 40 Demand function: ? = 200 − 20? a. Draw the demand-supply curves. Find equilibrium price and quantity. Find consumer surplus, producer surplus, and total surplus in the graph. b. Calculate exact size of consumer surplus, producer surplus, and total surplus, respectively. Welfare effects of a price control. The government sets a price floor at $5. c. Find the market price and quantity traded, and the...
An increase in the demand for sports cars and an increase in the supply of sports cars occur together. What is the effect on the price and quantity of sports cars? create a surplus or a shortage of An increase in the demand for sports cars together with an increase in the supply of sports cars_ sports cars at the original price. The equilibrium price of sports cars O A. will not; will not change O B. might; will rise...
6b. Price Supply * Pmax Demand Quantity/period Imax This is the market for apartments in City A. Note that the equilibrium price is P'. A widely practiced form of price control in many economies has been rent control. Because governments seek to provide access to rental accommodation for low-income families who cannot afford high city rentals. The local government decides that P is too high and enforces a price ceiling (a maximum prices of P max that landlords can charge....
do part b
Figure 1: Market for Musthaves Price $40 Supply 24 1X1 Demand 32 48 72 Quantity Question 1: Use Figure 1 (The Market for Musthaves) to answer the following: b) Suppose that an event causes Musthaves to become a necessary item for most people. As a result, the number of buyers of Musthaves increases significantly and the equilibrium price rises to $28. i. Show graphically why this happens. ii. What is the new consumer surplus? How does it...
Consider the market for plan tickets to the Caribbean. A bad
winter is Eastern and central Canada increases the demand for
tropical Caribbean vacations, shifting the demand curve to the
right. The supply curve stays constant. Total surplus will:
Consider the market for plane tickets to the Caribbean. A bad winter in E stays constant. Total surplus will: O increase because consumer surplus increases. O decrease because both consumer and producer surplus decrease. O increase because both consumer and producer...
now? 3. Use the graph below to answer the following questions. 54.00 Supply 3.00 Demand 10,000 20,000 Quantity Be sure to show all calculations. (25 points) a. What is the value of the consumer surplus after a binding price ceiling? b. What is the value of deadweight loss after a binding price ceiling? c. What is the value of the producer surplus before a binding price ceiling? 1) A Moving to the next question prevents changes to this answer. Question...
3. The market supply and demand for a product are shown in the diagram below. O PRICE $6 Supply Demand 080 200 QUANTITY (a) Is the price elasticity of supply less than one, equal to one, or greater than one? Explain. (b) Calculate consumer surplus at the equilibrium price. Show your work. (C) Now suppose the government imposes a per-unit tax of $1 on producers. (i) What happens to total revenue received by producers after they pay the tax to...
****IMPORTANT**** PLEASE ONLY PARTS F
AND G.
1) Consider the market for new cars. a. Identify four factors that may infl uence the demand for new cars (eit her movements along the demand curve or shifts of the demand curve). (2pts) b. Identify four factors that may infl uence the supply of new cars. (2pts) c. If the cost of steel goes up, how will supply or demand (if either) be affected? What wil happen to the equilibrium price and...
Consider the market for mountain bikes. The following graph shows the demand and supply for mountain bikes before the government imposes any taxes First, use the black point (plus symbol) to indicate the equilibrium price and quantity of mountain bikes in the absence of a tax. Then use the green point (triangle symbol) to shade the area representing total consumer surplus (CS) at the equilibrium price. Next, use the purple point (diamond symbol) to shade the area representing total producer...
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