Draw a correctly labeled graph showing a market with a positive externality. Label Demand, MPB, MSB, Supply, MPC, MSC, the market quantity (Qmkt), and the efficient quantity (Qopt)
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- Diagram of increase in demand and a diagram of increase in supply both do separately and do well labelledA leftward shift in demand curve shows (fall/rise) in demandGraph the following In the market for smartphones, the price elasticity of supply is +0.8, and the price elasticity of demand is -1.2. At equilibrium, price is $800 and quantity is 400000. (1a) Assuming supply and demand are linear, reconstruct and draw the supply and demand curves. Label the intercepts. (1b) To help consumers and phone-makers, the government proposes to subsidize smartphones by $80 each. What are PB and PS after the subsidy? What is the new equilibrium quantity? Illustrate them on the same graph. (c) Calculate the change in consumer surplus, producer surplus, government expenditure, and deadweight loss and identify them on the graph.
- B. Calculate for the demand and supply equationDEMAND Describe the determinants of demand. Why are they important?Demand, Supply, and Market Equilibrium - Think of a product that you have purchased recently (e.g. soda, diapers, takeout meals, milk, shoes, manicure/pedicure, video game, etc...). Explain how the law of demand affected your purchase. Give specific examples of how the determinants of demand and supply affect this product (T-I-P-E-N and P-R-E-S-T). What happens to the demand curve and the supply curve when any of these determinants change? What would cause a change in demand versus a movement along the same demand curve for this product? How would you determine the new equilibrium price and quantity that result from these changes? Can you demonstrate some of these changes graphically? Price Elasticity of Demand - Consider a product that you have purchased recently. If the price of this item increases, how would you adjust your purchases? Is the Demand for this product Price Elastic or Price Inelastic? Justify your classification by applying the determinants of elasticity to…
- The quantity of goods that consumers are willing and able to buy at a series of prices can be listed on a demand graph schedule curve lineExplain the relationship between demand and supply and also draw graphs.The figure below shows Sue's and Carlos' demand curves for gasoline. It would be useful to find the equation of the demand curves to answer the questions below. Refer to the figure above. The total demand curve has the vertical intercept at ________ and the horizontal intercept at ________, and its slope ________. (Multiple Choice) A)10.00 euros; 7,000 liters; is half as steep as Carlos's demand curve B) 15.00 euros; 7,000 liters; changes at 10.00 euros C) 15.00 euros; 7,000 liters; changes at 8.12 euros D) 18.00 euros; 7,000 liters; is twice as steep as Sue's demand curve
- Market Demand. Determine the market demand and graph it.Question 4 and pr If a website facilitates the sale of goods by individuals and businesses over the internet, but requires actual pho to be posted instead of a manufacturer's stock picture of the product, both the demand and supply of products shift due to the improved information. If supply shifts by more than demand, quantity will decrease, increase O increase, decrease increase, be indeterminate O decrease, be indeterminateThe figure shows a market for oil. Price ($/barrel) 72 64 56 48 40 D 80 84 88 92 Quantity (million barrels) If the current price of oil is $44 per barrel, the quantity of oil demanded is A million barrels, the quantity supplied is A million barrels, and the quantity bought is AA million barrels. There is excess (demand/supply) A in the market, and the price is expected to (rise/fall)
