How Do Clean A Culvert That Has A Curve In It
1. Over the past xxx years, technological advances have reduced the cost of estimator fries. How do you think this has affected the market place for computers? For computer software? For typewriters?
Technological advances that reduce the cost of producing computer chips correspond a refuse in an input price for producing a computer. The effect is a shift to the right in the supply of computers, every bit shown in Figure. The equilibrium price falls and the equilibrium quantity rises, as the figure shows.
Because computer software is a complement to computers, the lower equilibrium price of computers increases the need for software. As Figure below shows, the result is a rise in both the equilibrium price and quantity of software.
Considering typewriters are substitutes for computers, the lower equilibrium price of computers reduces the demand for typewriters. As Effigy below shows, the upshot is a reject in both the equilibrium toll and quantity of typewriters.
2. Using supply-and-demand diagrams, show the effect of the following events on the market for sweatshirts.
a. A hurricane in Southward Carolina damages the cotton fiber crop.
b. The price of leather jacket falls.
c. All colleges require morning exercise in advisable attire.
d. New knitting machines are invented.
a. When a hurricane in
b. A decline in the price of leather jackets leads more people to buy leather jackets, reducing the demand for sweatshirts. The result, shown in Figure, is a decline in both the equilibrium cost and quantity of sweatshirts.
c. The effects of colleges requiring students to engage in forenoon exercise in appropriate attire raises the demand for sweatshirts, every bit shown in Figure. The result is an increase in both the equilibrium toll and quantity of sweatshirts.
d. The invention of new knitting machines increases the supply of sweatshirts. As Figure shows, the consequence is a reduction in the equilibrium price and an increment in the equilibrium quantity of sweatshirts.
three. The market for pizza has the following demand and supply schedules:
| Price | Quantity Demanded | Quantity Supplied |
| $4 | 135 pizzas | 26 pizzas |
| 5 | 104 | 53 |
| half dozen | 81 | 81 |
| 7 | 68 | 98 |
| 8 | 53 | 110 |
| 9 | 39 | 121 |
a. Graph the demand and supply curves. What is the equilibrium price and quantity in this market?
b. If the actual cost in the market were above the equilibrium price, what would bulldoze the market toward equilibrium?
c. If the actual price in this marketplace were below the equilibrium price, what would drive the market toward the equilibrium?
Quantity supplied equals quantity demanded at a price of $6 and quantity of 81 pizzas. If the price were greater than $6, quantity supplied would exceed quantity demanded, and then suppliers would reduce the price to gain sales. If the price were less than $six, quantity demanded would exceed quantity supplied, so suppliers could enhance the price without losing sales. In both cases, the cost would continue to adjust until information technology reached $6, the only price at which there is neither a surplus nor a shortage.
4. Considering bagels and cream cheese are often eaten together, they are complements.
a. We observe that both the equilibrium price of foam cheese and the equilibrium quantity of bagels accept risen. What could be responsible for this pattern- a fall in the price of flour or a autumn in the price of milk? Illustrate and explain your reply.
b. Suppose instead that the equilibrium price of cream cheese has risen just the equilibrium quantity of bagel has fallen. What could exist responsible for this pattern- a ascent in the price of flour or a rise in the price of milk? Illustrate and explain your reply.
a. Because flour is an ingredient in bagels, a refuse in the price of flour would shift the supply bend for bagels to the right. The issue, shown in Figure, would be a fall in the price of bagels and a rising in the equilibrium quantity of bagels.
Because cream cheese is a complement to bagels, the fall in the equilibrium price of bagels increases the need for cream cheese, every bit shown in Figure below. The effect is a rise in both the equilibrium price and quantity of foam cheese. And so, a fall in the cost of flour indeed raises both the equilibrium toll of cream cheese and the equilibrium quantity of bagels.
What happens if the price of milk falls? Considering milk is an ingredient in foam cheese, the fall in the price of milk leads to an increase in the supply of foam cheese. This leads to a subtract in the price of cream cheese, rather than a rise in the price of foam cheese. So a fall in the cost of milk could not have been responsible for the blueprint observed.
b. In part (a), nosotros found that a fall in the price of flour led to a rise in the price of cream cheese and a rise in the equilibrium quantity of bagels. If the price of flour rose, the opposite would exist true; information technology would atomic number 82 to a fall in the toll of cream cheese and a autumn in the equilibrium quantity of bagels. Because the question says the equilibrium toll of cream cheese has risen, it could not have been acquired by a ascent in the price of flour.
What happens if the toll of milk rises? From part (a), we establish that a fall in the price of milk caused a pass up in the price of cream cheese, so a rise in the price of milk would cause a ascension in the price of cream cheese. Because bagels and cream cheese are complements, the rise in the price of cream cheese would reduce the demand for bagels, as Figure beneath shows. The result is a decline in the equilibrium quantity of bagels. So a ascent in the price of milk does crusade both a rise in the price of cream cheese and a decline in the equilibrium quantity of bagels.
5. Suppose that the price of basketball tickets at your college is determined by market forces. Currently, the need and supply schedules are as follows:
| Price | Quantity Demanded | Quantity Supplied |
| $iv | 10,000 tickets | 8,000 tickets |
| 8 | eight,000 | 8,000 |
| 12 | 6,000 | eight,000 |
| 16 | 4,000 | 8,000 |
| xx | two,000 | viii,000 |
a. Describe the need and supply curves. What is unusual about this supply curve? Why might this be true?
b. What are the equilibrium price and quantity of tickets?
c. Your college plans to increase total enrollment next year by 5,000 students. The additional students will have the following demand schedule:
| Price | Quantity demanded |
| $4 | 4,000 tickets |
| viii | 3,000 |
| 12 | 2,000 |
| 16 | 1,000 |
| 20 | 0 |
Now add the old demand schedule and the demand schedule for the new students to calculate the new need schedule for the unabridged college. What will be the new equilibrium cost and quantity?
a. Every bit Figure below shows, the supply bend is vertical. The abiding quantity supplied makes sense because the basketball arena has a fixed number of seats at any price.
b. Quantity supplied equals quantity demanded at a price of $viii. The equilibrium quantity is 8,000 tickets.
c.
| Cost | Quantity Demanded | Quantity Supplied |
| $4 | 14,000 | 8,000 |
| $8 | eleven,000 | eight,000 |
| $12 | 8,000 | 8,000 |
| $xvi | 5,000 | 8,000 |
| $xx | 2,000 | eight,000 |
The new equilibrium price will be $12, which equates quantity demanded to quantity supplied. The equilibrium quantity remains 8,000 tickets.
half-dozen. The government has decided the free-marketplace price of cheese is too low.
a. Suppose the government imposes a binding price flooring in the cheese market. Draw a supply-and-demand diagram to evidence the effect of this policy on the price of cheese and quantity of cheese sold. Is there a shortage or a surplus of cheese?
b. Producers of cheese mutter that the toll floor has reduced their total revenue. Is this possible? Explain.
c. In response to the cheese producers' complaints, the government agrees to purchase all the surplus cheese at the price floor. Compared to the basic toll floor, who benefits from this new policy? Who loses?
a. The imposition of a bounden price floor in the cheese market is shown in Figure 4. In the absence of the price floor, the price would exist P ane and the quantity would be Q 1. With the floor set at P f, which is greater than P 1, the quantity demanded is Q two, while quantity supplied is Q three, so at that place is a surplus of cheese in the amount Q 3 – Q two.
b. The farmers' complaint that their total acquirement has declined is correct if demand is rubberband. With rubberband demand, the percentage decline in quantity would exceed the percentage rise in price, then total revenue would pass up.
c. If the government purchases all the surplus cheese at the price flooring, producers benefit and taxpayers lose. Producers would produce quantity Q iii of cheese, and their total revenue would increase substantially. However, consumers would buy only quantity Q 2 of cheese, so they are in the same position as before. Taxpayers lose considering they would exist financing the purchase of the surplus cheese through higher taxes.
7. A recent report found that the need and supply for Frisbees are equally follows:
| Price per Frisbee | Quantity Demanded | Quantity Supplied |
| $eleven | ane million Frisbees | 15 1000000 Frisbees |
| 10 | ii | 12 |
| ix | 4 | 9 |
| eight | 6 | 6 |
| seven | 8 | three |
| 6 | 10 | 1 |
a. What are the equilibrium price and quantity of Frisbees?
b. Frisbee manufacturers persuade the government that Frisbee product improves scientists' understanding of aerodynamics and thus is important for national security. A concerned Congress votes to impose a price floor of $ii above the equilibrium toll. What is the new market price? How many Frisbees are sold?
c. Irate college students march on Washington and demand a reduction in the cost of Frisbees. An even more concerned Congress votes to repeal the price flooring and impose a price ceiling $1 beneath the former price floor. What is the new market toll? How many Frisbees are sold?
a. The equilibrium price of Frisbees is $viii and the equilibrium quantity is six million Frisbees.
b. With a toll floor of $10, the new market place price is $10 because the price floor is binding. At that price, merely two meg Frisbees are sold, considering that is the quantity demanded.
c. If there's a price ceiling of $ix, it has no upshot, because the market equilibrium toll is $8, which is below the ceiling. So the market place price is $8 and the quantity sold is half-dozen million Frisbees.
8. Suppose the federal government requires beer drinkers to pay a $2 tax on each case of beer purchased. (In fact, both federal and state governments impose beer taxes of some sort.)
a. Describe a supply-and-demand diagram of the marketplace for beer without the tax. Bear witness the price paid by consumers, the price received by producers and the quantity of beer sold. What is the difference betwixt the price paid by consumers and the price received by producers?
b. Now depict a supply-and-demand diagram for the beer marketplace with the tax. Show the price paid past consumers, the price received past producers and the quantity of beer sold. What is the divergence between the price paid by consumers and the price received past producers? Has the quantity of beer sold increased or decreased?
a. Figure beneath shows the market for beer without the tax. The equilibrium price is P one and the equilibrium quantity is Q 1. The price paid by consumers is the aforementioned equally the price received by producers.
b. When the taxation is imposed, it drives a wedge of $2 between supply and demand, equally shown in Figure 6. The toll paid by consumers is P ii, while the toll received past producers is
P 2 – $2. The quantity of beer sold declines to Q ii.
9.Explain how buyer's willingness to pay, consumer surplus and the need curve are related.
The cost a buyer is willing to pay, consumer surplus, and the demand curve are all closely related. The height of the demand curve represents the willingness to pay of the buyers. Consumer surplus is the surface area below the demand curve and above the cost, which equals the price that each heir-apparent is willing to pay minus the toll really paid.
10. Explain how seller'south costs, producer surplus, and the supply curve are related.
Sellers' costs, producer surplus, and the supply curve are all closely related. The summit of the supply bend represents the costs of the sellers. Producer surplus is the area below the price and in a higher place the supply bend, which equals the toll received minus each seller's costs of producing the adept.
xi. In a supply-and-need diagram, show producer and consumer surplus in the market equilibrium.
12. What is efficiency? Is it the simply goal of economic policymakers?
An resource allotment of resource is efficient if it maximizes total surplus, the sum of consumer surplus and producer surplus. But efficiency may not exist the but goal of economic policymakers; they may also be concerned nigh disinterestedness ¾ the fairness of the distribution of well-beingness.
13. Name two types of market failure. Explicate why each may crusade market outcomes to be inefficient .
Two types of marketplace failure are market power and externalities. Market power may cause market place outcomes to be inefficient because firms may crusade price and quantity to differ from the levels they would be under perfect contest, which keeps total surplus from being maximized. Externalities are side effects that are non taken into account by buyers and sellers. As a result, the gratuitous market place does not maximize full surplus.
Source: http://web.mnstate.edu/stutes/Econ202/Econ202/Fall%202017/key4.htm
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