Download Problems 7

■ Chapter 7
1. Suppose the weekly demand and supply curves for used DVDs in Lincoln, Nebraska, are as
shown in the diagram. Calculate
a. The weekly consumer surplus. $4.5(=1/2*6*1.5)
b. The weekly producer surplus. $13.5(=1/2*6*4.5)
c. The maximum weekly amount that producers and consumers in Lincoln would be
willing to pay to be able to buy and sell used DVDs in any given week. $18(=a+b)
a
S
12
Price($/DVD)
10.5
b
7.50
0
6
2*a
D
0
2
6
18
48
Quantity (DVDs/week)
2. Refer to Problem 1. Suppose a coalition of students from Lincoln High School succeeds in
persuading the local government to impose a price ceiling of $7.50 on used DVDs, on the
grounds that local suppliers are taking advantage of teenagers buy charging exorbitant prices.
a. Calculate the weekly shortage of used DVDs that will result from this policy.
$12[=13.5 – (1/2*1.5*2)], 즉, b-(2*a)
b. Calculate the total economic surplus lost every week as a result of the price ceiling.
$12 (the loss in total economic surplus is equal to the loss in producer surplus)
3. The Kubak crystal caves are renowned for their stalactites and stalagmites. The warden of
the caves offers a tour each afternoon at 2 P.M. sharp. The caves can be shown to only four
people per day without disturbing their fragile ecology. Occasionally, however, more than four
people want to see the caves on the same day. The following table lists the people who
wanted to see the caves on September 24, 2003, together with their respective times of
arrival and reservation prices for taking the tour that day.
Arrival time
Reservation price ($)
Herman
1:48
20
Jon
1:50
14
Kate
1:53
30
Jack
1:56
15
Penny
1:57
40
Fran
1:59
12
Faith
2:00
17
a. If the tour is "free" and the warden operates it on a first-come, first-served basis, what will
the total consumer surplus be for the four people who get to go on the tour on that day? $79
b. Suppose the warden solicits volunteers to postpone their tour by offering increasing
amounts of cash compensation until only four people sill wish to see the caves that day. If
he gives each volunteer the same compensation payment, how much money will he have to
offer to generate the required number of volunteers? What is the total economic surplus
under this policy? $15 / C 참조
c. Why is the compensation policy more efficient than the first-come, first-served policy?
The compensation policy; Jack+Jon+Fran = $41 or $28 less than the first-come…policy
The first-come, first-served policy; Penny+Fran+Faith = $69
그러므로 보상정책이 더 효율적이다.
d. Describe a way of financing the warden's compensation payments that will make everyone,
including the warden, either better off or no worse off than under the first-come, firstserved approach. 상충된다.
4. Suppose the weekly demand for a certain good, in thousands of units, is given by the equation
P = 8 - Q, and the weekly supply of the good is given by the equation P = 2 + Q, where P is
the price in dollars.
a. Calculate the total weekly economic surplus generated at the market equilibrium. $9
b. Suppose a per-unit tax of $2, to be collected from sellers, is imposed in this market.
Calculate the direct loss in economic surplus experienced by participants in this market as a
result of the tax. $5 (=$9-$4)
c. How much government revenue will this tax generate each week? If the revenue is used to
offset other taxes paid by participants in this market, what will be their net reduction in
total economic surplus? $4 / $1 ($5-$4)
8
$1
S+tax
S
5
4
2
0
2 3
8
* Q 1 & Q2를 참고하십시오.
5. Is a company's producer surplus the same as its profit? (Hint: A company's total cost is equal
to the sum of all marginal costs incurred in producing its output, plus any fixed costs.)
No
6. In Charlotte, North Carolina, citizens can get their electric power from two sources: a
hydroelectric generator and a coal-fired steam generator. The hydroelectric generator can
supply up to 100 units of power per day at a constant marginal cost of 1 cent per unit. The
steam generator can supply any addition power that is needed at a constant marginal cost of
10 cents per unit. When electricity costs 10 cents per unit, residents of Charlotte demand 200
units per day.
a. Draw the marginal cost curve of electric power production in Charlotte.
b. How much should the city charge for electric power? Explain. Should it charge the same
price for a family whose power comes from the hydroelectric generator as it does for a
family whose power comes from the steam generator?
10센트 / Yes (물의 효율적인 사용을 장려하기위해)
SG
10
2
HG
100
200
7. The municipal water works of Cortland draws water from two sources, an underground spring
and a nearby lake. Water from the spring costs 2 cents per 100 gallons to deliver, and the
spring has a capacity of 1 million gallons per day. Water from the lake costs 4 cents per 100
gallons to deliver and is available in unlimited quantities. The demand for water in the summer
months in Cortland is P = 20 - 0.001Q, where P is the price of water in cents per 100 gallons,
and Q is quantity demanded in hundreds of gallons per day. The demand curve for water in
the winter months is P = 10 – 0.001Q. If the water works wants to encourage efficient water
use, how much should it charge for water in the summer months? In the winter months?
여름 4센트, 1.6million gallons/ 겨울 2센트 0.8 million gallons
20
10
LAKE
4
2
SPRING
100만
200만
8. Phil's demand curve for visits to the Gannett walk-in medical clinic is given by P = 48 - 8Q,
where P is the price per visit in dollars and Q is the number of visits per semester. The
marginal cost of providing medical services at Gannett is $24 per visit. Phil has a choice
between two health policies, A and B. Both policies cover all the costs of any serious illness
from which Phil might suffer. Policy A also covers the cost of visits to the walk-in clinic,
whereas policy B does not. Thus if Phil chooses policy B, he must pay $24 per visit to the
walk-in clinic.
a. If the premiums the insurance company charges for policies A and B must cover their
respective costs, by how much will the two premiums differ, and what will be the difference
in Phil's total expenditure for medical care under the two policies?
b. Which policy will Phil choose?
c. What is the most Phil would be willing to pay for the right to continue buying that policy?
9. The government of Islandia, a small island nation, imports heating oil at a price of $2 per
gallon and makes it available to citizens at a price of $1 per gallon. If Islandians' demand
curve for heating oil is given by P = 6 - Q, where P is the price per gallon in dollars and Q is
the quantity in millions of gallons per year, how much economic surplus is lost as a result of
the government's policy? $500,000
6
$500,000
S
2
1
0
국내가격
4
5
6
10. Refer to Problem 9. Suppose each of the 1 million Islandian households has the same
demand curve for heating oil.
a. What is the household demand curve? P = 6-q, where q is the quantity in gallon per yer
b. How much consumer surplus would each household lose if it had to pay $2 per gallon
instead of $1 per gallon for heating oil, assuming there were no other changes in the
household budget? 4.5 dollars
c. With the money saved by not subsidizing oil, by how much could the Islandian government
afford to cut each family's annual taxes? 5 dollars
d. If the government abandoned its oil subsidy and implemented the tax cut, by how much
would each family be better off? 0.5 dollar
e. How does the resulting total gain for the 1 million families compare with your calculation of
the lost surplus in the Problem 9? $500,000