Part I: Multiple-choice questions. Select exactly one alterna
... 7. The monopoly …rm Obit is selling a good to two types of customers, high income (H) and low income (L). The individual demand functions for each type of customer are given by QH (p) = 60 3p and QL (p) = 60 6p and Obit has a constant marginal cost of 4. (a) (10 points) Suppose Obit practices third- ...
... 7. The monopoly …rm Obit is selling a good to two types of customers, high income (H) and low income (L). The individual demand functions for each type of customer are given by QH (p) = 60 3p and QL (p) = 60 6p and Obit has a constant marginal cost of 4. (a) (10 points) Suppose Obit practices third- ...
Lecture Notes 10
... where pP t is the patent of the price. Free entry is assumed thus there will be zero profit in equilibrium. Notice also the R&D firm is solving a static problem without realizing the positive externality this period’s decision creates on next periods production. As we will see, this and the monopol ...
... where pP t is the patent of the price. Free entry is assumed thus there will be zero profit in equilibrium. Notice also the R&D firm is solving a static problem without realizing the positive externality this period’s decision creates on next periods production. As we will see, this and the monopol ...
Equilibrium PPT
... The Graphical Interaction of Supply and Demand • When price is $2.50 each, quantity supplied equals 5 and quantity demanded equals 5. • There is no excess supply or excess demand, so price will not rise or fall. ...
... The Graphical Interaction of Supply and Demand • When price is $2.50 each, quantity supplied equals 5 and quantity demanded equals 5. • There is no excess supply or excess demand, so price will not rise or fall. ...
Supply and Demand
... • If price above the equilibrium, quantity supplied will be greater than quantity demanded. Gains from trade are possible at lower price. • If price is below the equilibrium, quantity supplied will be less than quantity demanded. Gains from trade are possible at a higher price. ...
... • If price above the equilibrium, quantity supplied will be greater than quantity demanded. Gains from trade are possible at lower price. • If price is below the equilibrium, quantity supplied will be less than quantity demanded. Gains from trade are possible at a higher price. ...
File
... 1. Under these conditions, competitive market forces would tend to establish an equilibrium price of _________ per Greebe and an equilibrium quantity of _________ million Greebes. 2. If current market price is $0.30 per Greebe, buyers would want to buy _________ million Greebes and sellers would wan ...
... 1. Under these conditions, competitive market forces would tend to establish an equilibrium price of _________ per Greebe and an equilibrium quantity of _________ million Greebes. 2. If current market price is $0.30 per Greebe, buyers would want to buy _________ million Greebes and sellers would wan ...
Economic Survey
... producer will be able to sell the product at the price that they have been asking and will need to adjust production to make sure that they do not produce more until the surplus is gone. If demand is elastic, they may be stuck with the surplus unless some other market factor increases sales – findin ...
... producer will be able to sell the product at the price that they have been asking and will need to adjust production to make sure that they do not produce more until the surplus is gone. If demand is elastic, they may be stuck with the surplus unless some other market factor increases sales – findin ...
EC 131 - Price Controls and Taxation
... Total tax revenue is of 57.6 × 2 = $115.20. The money may be sent to the government by the consumer (if consumers are taxed) or by the producers (if producers are taxed), but the burden of the tax is shared among them. How so? If compared to the original equilibrium in which there were no taxes, con ...
... Total tax revenue is of 57.6 × 2 = $115.20. The money may be sent to the government by the consumer (if consumers are taxed) or by the producers (if producers are taxed), but the burden of the tax is shared among them. How so? If compared to the original equilibrium in which there were no taxes, con ...
Econ 211s - Marietta College
... the government must plant crops of its own to assure that there will be no shortage of agricultural products. the government must bear the cost of the lost consumer surplus. ...
... the government must plant crops of its own to assure that there will be no shortage of agricultural products. the government must bear the cost of the lost consumer surplus. ...
AP Microeconomics Student Sample Question 1
... This question assessed the students’ ability to interpret and apply the supply and demand model to analyze the impact of changes in several economic variables on market equilibrium. Part (a) assessed the students’ ability to determine the effect of a price floor in a market; to calculate the price e ...
... This question assessed the students’ ability to interpret and apply the supply and demand model to analyze the impact of changes in several economic variables on market equilibrium. Part (a) assessed the students’ ability to determine the effect of a price floor in a market; to calculate the price e ...
here - mrrobinson.org
... 3. New vs Old firms have no advantages over each other 4. Seller/Buyer informed about price ...
... 3. New vs Old firms have no advantages over each other 4. Seller/Buyer informed about price ...
Graphing Supply and Demand
... 2. Graph the demand and the supply curve. Remember that price is always on the vertical axis and quantity is on the horizontal axis. Label each as S for supply and D for demand. 3. At what price is there equilibrium? Indicate where equilibrium occurs on your graph as well. 4. What does equilibrium m ...
... 2. Graph the demand and the supply curve. Remember that price is always on the vertical axis and quantity is on the horizontal axis. Label each as S for supply and D for demand. 3. At what price is there equilibrium? Indicate where equilibrium occurs on your graph as well. 4. What does equilibrium m ...
Assignment 1 Dute Sept 13 2002
... 1. Compare two countries. In one country, the government sets prices and never adjusts them. In the other country, the government adjusts prices daily, endeavoring to allocate resources to consumers to satisfy their tastes. Are either of these a market economy? Why or why not? Answer: No, neither of ...
... 1. Compare two countries. In one country, the government sets prices and never adjusts them. In the other country, the government adjusts prices daily, endeavoring to allocate resources to consumers to satisfy their tastes. Are either of these a market economy? Why or why not? Answer: No, neither of ...
Document
... (a) What is the aggregate demand for X in this country? Give the formula and its graph. (b) Suppose there are 6 identical competitive firms, each with cost function C(X)=X2+1. Find the short-run equilibrium. (c) Find the long-tun equilibrium (assuming the same cost function as in (b)). (d) Suppose t ...
... (a) What is the aggregate demand for X in this country? Give the formula and its graph. (b) Suppose there are 6 identical competitive firms, each with cost function C(X)=X2+1. Find the short-run equilibrium. (c) Find the long-tun equilibrium (assuming the same cost function as in (b)). (d) Suppose t ...
cnanges in market equilibrium
... Distribution of goods in a free market system based on prices costs nothing to administer unlike a centrally planned economy. Free market system pricing distributes goods through millions of decisions made every day by producers and consumers. ...
... Distribution of goods in a free market system based on prices costs nothing to administer unlike a centrally planned economy. Free market system pricing distributes goods through millions of decisions made every day by producers and consumers. ...
Economics Cumulative Problem Sets
... 5. If a major study shows that the chemical that are sprayed on apples make apples unhealthy, how will this change the equilibrium price and quantity in the short and longer run? 4. Based on the presentations in our program and your readings in Real World Micro, and Understanding Capitalism, explain ...
... 5. If a major study shows that the chemical that are sprayed on apples make apples unhealthy, how will this change the equilibrium price and quantity in the short and longer run? 4. Based on the presentations in our program and your readings in Real World Micro, and Understanding Capitalism, explain ...
Homework 1 (due Thurs July 5)
... d) Will this be a long-run equilibrium? e) Suppose that demand for honey goes up to 19 − p gallons per month. In the short run equilibrium, how much profit will each farmer make? What is the long-run equilibrium? How many more farmers will enter in the long run? Part II Elasticity of residual demand ...
... d) Will this be a long-run equilibrium? e) Suppose that demand for honey goes up to 19 − p gallons per month. In the short run equilibrium, how much profit will each farmer make? What is the long-run equilibrium? How many more farmers will enter in the long run? Part II Elasticity of residual demand ...
According to the law of demand: As prices rise, ceteris paribus a
... c. the government needs to intervene to correct the misallocation of resources. d. the government needs to intervene to correct the misallocation of resources. 8. At the same time that part of the lettuce crop was destroyed consumer income also decreased. Ceteris Paribus, in the market for lettuce ...
... c. the government needs to intervene to correct the misallocation of resources. d. the government needs to intervene to correct the misallocation of resources. 8. At the same time that part of the lettuce crop was destroyed consumer income also decreased. Ceteris Paribus, in the market for lettuce ...