Suppose the supply curve of portable radio rentals in Golden Gate Park is given by: P= 5 +0.1Q, where P is the daily rent per unit in dollars and Q is the volume of units rented in hundreds per day. The demand curve for portable radios is: P=20-0.2Q. If each portable radio imposes $3.60 per day in noise costs on others, by how much will the equilibrium number of portable radios rented exceed the socially optimal number? units (in hundreds).
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- Suppose the supply curve of motorized scooter rentals in Golden Gate Park is given by: P = 5 + 0.1Q, where P is the daily rent per unit in dollars and Q is the volume of units rented in hundreds per day. The demand curve for motorized scooters is: P=20 -0.2Q. If each motorized scooter imposes $2.10 per day in noise costs on others, by how much will the equilibrium number of motorized scooters rented exceed the socially optimal number? units (in hundreds).Suppose a small town has two bakeries: Bakery A and Bakery B. The residents of the town have different preferences when it comes to buying bread. Bakery A produces high-quality bread and charges a price of $5 per loaf, while Bakery B produces standard-quality bread and charges a price of $3 per loaf. The demand for bread in the town can be represented by the following equations: Q_A = 200 - 10P_A + 4P_B Q_B = 150 - 6P_B + 2P_A Where: Q_A and Q_B are the quantities of bread demanded from Bakery A and Bakery B respectively. P_A is the price charged by Bakery A. P_B is the price charged by Bakery B. a) Calculate the quantities of bread demanded from Bakery A and Bakery B when P_A = $5 and P_B = $3. b) Calculate the quantities of bread demanded from Bakery A and Bakery B when P_A = $6 and P_B = $2. c) If Bakery A and Bakery B collaborate and decide to charge the same price, what price should they charge to maximize their combined revenue? Calculate the price and the corresponding quantity…If a boxing fight is shown on pay-per-view television every Saturday at 4 p.m., the demand curve for each fight is given in the accompanying graph. Cost ($/fight) 25 20 15 10 5 0 10 20 30 40 50 Viewing households (millions) If there is a pay-per-view charge to watch a fight, the outcome is ----because efficient; prices will allocate the program to those who value it the most efficient; the marginal cost of an additional viewing household is zero O inefficient; the marginal cost of an additional viewing household is zero O inefficient; television stations would not always make a profit
- Honey bees kept by beekeepers pollinate flowers and plants nearby (not just those owned by the beekeeper) which promote growth of plants, grasses, and trees. The graph below shows the market for honey bees. In the graph below, reposition the moveable point "Social P & Q" to indicate the socially optimal price and quantity of honey bees. Provide your answer below: 20 Social P & Q (12,17) 15 Supply 10 5 MSB MPB 20 25 Quantity 10 15 30 PriceConsider that the retail market for sanitizing wipes in a small locale is described by the follow demand and supply equations respectively: P = 8.40 - 0.02Q and P = 6.60 + 0.01Q where P is the price in dollars and Q is the quantity measured in thousands per week. The market is currently in equilibrium. (Question 8 of 8) Now consider than an unexpected viral outbreak led to consumers ensuring that much more surfaces (counter tops, door handles, etc.) are clean and sanitized. At the same time, the government's demand for sanitizing wipes at various public institutions (hospitals, schools, etc.) has impacted the supply of sanitizing wipes in the retail market. Although the government is neither a buyer nor seller in the retail market, their requests for sanitizing wipes does affect how many sanitizing wipes firms are able to supply in the retail market. The market for sanitizing wipes adjusts afterwards and the market is in equilibrium. Suppose that after the market for sanitizing wipes…The New York state government is trying to build a massive dam that may obscure scenic views of the Hudson River. Assume the state government is trying to decide how many miles of the river it should preserve. The community that would be affected includes 200 people, each of whom has an identical inverse demand function represented by P= 30-3q, where q is the number of miles preserved and P is the per-mile price the community member is willing to pay for q miles of preserved river a. If the marginal cost of preservation is $600 per mile, how many miles would be preserved in an efficient allocation? b. What is the size of the economic surplus?
- The demand curve for a public park for two consumers who represent society is given by: P = 150 - QD1, P = 250 - QD2 Graph the two demand curves and show the marginal social benefit curve for this public park. If the marginal cost of providing the park was €240, what would the optimum provision of this park be? Explain why any quantity above or below this amount would represent a less than efficient allocation.10-) Suppose 10 people each have the demand Q = 20 – 4P for streetlights and 5 people have the demand Q = 18 – 2P for streetlights. The cost of building each streetlight is 3. If it is possible to purchase a fractional number of streetlights, how many streetlights are socially optimal?Which of the following is true of market social equilibrium if third parties, people outside the market for a good, bear part of the cost of the good's production? Socially optimal quantity will be greater than the private quantity, and the socially optimal price will be greater than the private price. Socially optimal quantity will be less than the private quantity, and the socially optimal price will be greater than the private price. Socially optimal quantity will equal the private quantity, and the socially optimal price will equal the private price. Socially optimal quantity will be less than the private quantity, and the socially optimal price will be less than the private price. Socially optimal quantity will be greater than the private quantity, and the socially optimal price will be less than the private price.
- Assume the Senator asks you of the optimal policy to combat CO2 emissions (carbon emissions). The senator is interested in implementing a policy that will reduce emissions from the power sector. The demand for electricity is P = 20 - 2 x Q where Q is amount of electricity demanded, and P is the price of electricity in MWh. The marginal cost of producing electricity is MC = 2 x Q And the damage caused by pollution is MEC = QWhat is the equilibrium price to consumers under competitionSuppose the government is considering an increase in the toll on a certain stretch of highway from $.20 to $.40. At present, 80,000 cars per week use that highway stretch; after the toll is imposed, it is projected that only 75,000 cars per week will use the highway stretch. Assuming that the marginal cost of highway use is constant (i.e., the supply schedule is horizontal) and equal to $.20 per car, what is the change in social surplus attributable to the increase in the toll? (Hint: The toll increase will cause the supply schedule, not the demand schedule, to shift.) Calculate government revenues from the increased toll. A. $18,750 B. $37,500 C. $15,000 D. $1000The figure on the right displays the market for video game consoles, where nine buyers are interacting with nine sellers. According to this figure, the equilibrium price is $, and at that price, the equilibrium quantity is When the market is in equilibrium, social surplus is $. If the number of consoles is restricted to two less than the equilibrium quantity, social surplus is $. Alternatively, if the government mandated that one more video game console than equilibrium be transacted, social surplus is now $. From this analysis, it can be concluded that a market in competitive equilibrium social surplus. ៖ 900+ 800- 700- 600- 500- 400- 300- 200- 100- 0 Market for Video Game Consoles Quantity 6 7