Table 7-4. For each of the three potential buyers of oranges, the table displays the willingness to pay for the first three oranges of the day. Assume Allison, Bob, and Charisse are the only three buyers of oranges, and only three oranges can be supplied per day. Allison Bob Charisse First Orange 2.00 1.50 0.75 increases by $0.75. decreases by $1.00. decreases by $0.95. Willingness to Pay decreases by $0.75. (Dollars) Second Orange 1.50 1.00 0.25 Refer to Table 7-4. If the market price of an orange increases from $0.80 to $1.05, then consumer surplus Third Orange 0.75 0.60 0.00
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- The above figures show the market for gasoline. Which figure(s) shows the effect of an increased preference for cars that are smaller and more fuel efficient? DI 这些 D2 D2 D₁ Quantity (gallons of gas) Quantity (gallons of gas) Figure A Figure B Price (dollars per gallon) S2 她 Quantity (gallons of gas) Figure D Quantity (gallons of gas) Figure C O Figure A O Figure B O Figure C O Figure D Price (dollars per gallon) S2A friend of yours is off to Paris to eat croissants at Laduree on Rue Royale Croissants Total value. EFTIRER ALLEZ MITS 1 2 3 4 3. Why does she eat more at lower prices? 5 6 7 8 2. How many will she eat at $10? How many at $4? $10.00 $18.50 $25.50 $31.00 $35.00 $37.50 $38.50 $38.00 1. What happens to her total happiness when she eats each additional croissant? Is it increasing/decreasing at an increasing/decreasing rate? Marginal ValueFigure 4.2 P3 P2 P1 A C Q Q2 Q3 Q4 Qs Qs Q7 Refer to Figure 4.2. The demand curve A indicates that O the smallcst price change will cause consumcrs to change their consumption by a large amount, O therc is no change in quantity demandcd as the price changes. consumcrs can purchase any quantity they want regardless of the price, Oithc smalcst price incrcasc wil.causc.consuners to switch to the producer with thc lowest
- Price Keram H 1 1 4 Becky's D for Blueberries Demand Refer to the graph above to answer this question. The graph shows Becky's demand for blueberries which can be purchased in any quantities and sold at any price What is Becky's total willingness to pay for 6 kilograms of blueberries if the price of each kilogram of blueberries is $27 Multiple Choice O O O O O $12. Cannot be determined. $18. $6. $2h. Producers expect the price of hot chocolate to increase next month. If the price of hot chocolate is $.50 per cup above equilibrium. Problem 5: The table below shows the quantities demanded of milk per month by four families at various prices. Price of Gallon of The Berman Milk $3.00 $4.00 $5.00 $6.00 The Harris Family 12 10 The Johnson Family The Patel Family Family 14 10 6 |2 15 12 9 6 7 6 6 If the four families listed are the only demanders in this market and the price of a gallon of milk is $4.00, what is the market quantity demanded? a. If the four families listed are the only demanders in this market and the price of a gallon of milk increases from $4.00 to $5.00, what is the change in the market quantity demanded? b.Say in a market we haveDemand is P = 5 – 0.005QSupply is P = 0.00125Qa-you will have a graph with price on the vertical axis and quantity on the horizontal axis formost parts of this problem. You will want to show intercept values and equilibrium values withthe specific values from the problem (when you graph the supply show it go out at least to thesame level of Q as the Q intercept for the demand curve).b-what are the equilibrium price and quantity traded in the market?c-say the government levies an excise tax in the market of 50 cents that renders the supply tonow be P = .00125Q + 0.5 (essentially the supply curve shifts up by 50 cents at each quantity).What are the new equilibrium price and quantity traded in the market with this excise tax?d-did the market price increase by as much as the 50 cent tax? (compare the market priceincrease with the amount of the tax of 50 cents)e-what is then loss in consumer surplus from the tax? Do consumers like excise taxes?f-what is the elasticity…
- Assume you have your car broken down just before the weekend. You value your weekend trip as muchas v and if you have to stay home you get the zero utility. There are two dealerships in your town. Atthe beginning of the day they simultaneously choose a price for repair. Dealers know that when you cometo one of them and observe the price, you can always call to another dealer to make an inquiry about hisprice. The call is costless. The other dealer, however, can be occupied for this day. Assume, this happenswith probability which is a common knowledge (but the dealers do not know whether the other dealer isoccupied or not). Assume zero repair cost for the dealer and find a symmetric equilibrium of the game.16. Consider a market in which high-quality and low-quality television sets are sold. Before consumers make a purchase, they do not know the quality of the sets , but the sellers do know . As compared to a situation where both consumers and sellers know the quality of the sets, this situation would ) A)cause no change in the ratio of low to high-quality sets sold B)increase the fraction of high-quality sets sold (C) increase the fraction of low-quality sets sold (D) cause the average price of goods sold to rise.7 This figure below shows the payoffs involved when Sarah and Joe work on a school project together for a single grade. They both will enjoy a higher grade when more effort is put into the project, but they also get pleasure from goofing off and not working on the project. The payoffs can be thought of as the utility each would get from the effort they individually put forth and the grade they jointly receive. 1 Sarah points Lew Effont High Effert 00:40 25 Low Effort Joe High Effon The outcome of the game in the figure shown will be: Multiple Choice Joe puts forth high effort and Sarah puts forth low effort. Joe puts forth low effort and Sarah puts forth high effort. Joe and Sarah both put forth low effort. Joe and Sarah both put forth high effort.
- 14. Determinants of Supply and Demand Consider the market for electric cars. Assume electric cars are a normal good. For each of the following events, identify which of the determinants of demand or supply are affected. If demand is unaffected by this event because it creates only a supply change, select the "None" option under the "Demand Determinant column. Similarly, if supply is unaffected by this event because it creates only a demand change, select the "None" option under the "Supply Determinant" column. Event Demand Determinant Supply Determinant Engineers develop new automated machinery for the production of electric cars. People increase their concern for the environment. An economic boom raises people's wealth. A strike by aluminum workers raises the price of aluminum. The price of gas-powered cars falls. Show the effect of the following event on the market for electric cars: Engineers develop new automated machinery for the production of electric cars. Supply Demand Supply…Refer to the graph below. Assume that the initial equilibrium in the market for bus rides is point A (30 rides per week). The price of bus rides increases and the equilibrium shifts to point B (20 rides per week). The income effect of the change in consumer behavior is the $ of other consumption 45 40 35 30 25 20 15 10 5 T T T T T T L B C A 5 10 15 20 25; 30 35 40 45 26 # of bus rides per week decrease of consumption by 4 decrease of consumption by 6 increase of consumption by 67 Asen tries to minimize his cost of using two goods x subscript 1 end subscript and x subscript 2 end subscript. The price of the first good is BGN 12 and the second good BGN 8. His utility function is x subscript 1 superscript 3 divided by 5 end superscript x subscript 2 superscript 2 divided by 5 end superscript and the utility he will get from using both goods, is 32 units. Find the Hicks quantities demanded and what Assen's minimum budget must be to consume these quantities and obtain the above utility. e-412, h2=21, h1=21 e=416, h2=21, h1=21 e=640, h1=32, h2=32 e=422, h2=21, h1=21 e=378, h2=21, h1=21 e-378, h2=20, h1=20 another answer e-378, h2=24, h1=24