3. This question assumes that the market for apartments in Sydney is perfectly competitive. (a) Evaluate the decision of the NSW government to double the first home buyer subsidy in terms of Pareto efficiency and fairness. (b) Now suppose the NSW government decides not to help first home buyers in Sydney any longer and removes the existing subsidy. Evaluate this decision in terms of Pareto efficiency and fairness.

9. a) Explain law of demand, willingness to pay and diminishing marginal benefit briefly? b) What factors cause to demand curves to shift and what is the reason for a movement along the demand curve?

Question 1. Melissa buys an iPhone for $120 and gets consumer surplus of $80. a) What is her willingness to pay? b) If she had bought the iPhone on sale for $90, what would her consumer surplus have been?

10) Use the figure below to answer the following question. The equilibrium point in the market is the point at which the S and D curves intersect. Price P₁ 0 a C Q₁ b d Q₂ @ Quantity S D If actual production and consumption occur at Q₁ A) consumer surplus is maximized. C) missing surplus of e + d occurs. 10) B) missing surplus of b + d occurs. D) economic surplus is maximized.

2. In most cases, a demand curve has a shape that we call "downward sloping". This means that it looks like a diagonal line going from the top left to the bottom right of a market graph. Why does demand usually have this shape? Explain in your own words. Make sure to include the concept of marginal benefit (a.k.a. marginal utility) in your explanation.

2) The diagram below represents the market for battery packs. If the price were currently at $28/pack there would be a: Group of answer choices surplus of 4 battery packs surplus of 20 battery packs shortage of 4 battery packs shortage of of 20 battery packs

Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.

3. Consumer surplus for a group of consumers The following graph plots the demand curve (blue line) for several consumers in the market for motor scooters in Meade, a small town located in Kansas. The Meade market price of a motor scooter is given by the horizontal black line at $80. Each rectangle you can place on the following graph corresponds to a particular buyer in this market: orange (square symbols) for Dmitri, green (triangle symbols) for Frances, purple (diamond symbols) for Jake, tan (dash symbols) for Latasha, and blue (circle symbols) for Nick. Use the rectangles to shade the areas representing consumer surplus for each person who is willing and able to purchase a motor scooter at a market price of $80. (Note: If a person will not purchase a motor scooter at the market price, indicate this by leaving his or her rectangle in its original position on the palette.) PRICE (Dollars per motor scooter) 160 140 120 Dmitri Frances Jake 100 80 60 40 20 Dmitri Frances Market Price…

(a) Find the value of x, for which equilibrium ocurs and the corresponding equilibrium price pe (b) Sketch the graphs of the supply and demand curves, p = Sx) and p = D(x), on the same graph. (c) For what values of x is there a market shortage? A market surplus? 30. S(x) = 4x + 200 and D(x) - - 3x + 480

Refer to Question 4b.  The producer surplus for theater movies is $_____.  Do not forget to round to two decimal places, input the decimal point and two places to the right of the decimal point, and place a comma, if needed.