A large share of the world supply of cocoa beans comes from Ghana and Ivory Coast. Suppose that the marginal cost of producing cocoa beans is constant at GHC1000 per bag and the demand for cocoa beans is described by the following schedule. Price (GHC) Quantity (bags) 8000 5000 7000 6000 6000 5000 4000 3000 2000 1000 7000 8000 9000 10000 11000 12000 a) If there were many suppliers of cocoa beans, what would be the price and quantity? b) If there were only one supplier of cocoa, what would be the price and quantity? c) At a meeting in October 2017 in Accra, the leaders of the two leading producers of cocoa beans discussed the possibility of cooperating to boost the price of cocoa. If Ghana and Ivory Coast formed a cartel, what would be the price and quantity? If the countries split the market evenly, what would be Ghana's production and profit? f) What would happen to Ghana's profit if it increased its production by 1000 cocoa while Ivory Coast stuck to the cartel agreement? g) Use your answer in part (f) to explain why cartel agreements are often not successful.

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SOME S&D PROBLEMS 1. A. Find Pe and Qe Price per unit (dollar 8 8 2 2 2 2 2 2 2 2 100 90 80 70 60 50 40 30 20 10 0 200 400 600 Quantity B. What is the effect of a ceiling price of $40? 800 Do 1,000

The market for lemonade is currently in equilibrium and the cost of lemons rises (an input How will this affect the lemonade market Price will rise and sales will increase Price will rise and sales will fall Price will fall and sales will rise Price will fall and sales will fall

You are given this demand schedule for new boats. Which of the following demand curves accurately represents the demand schedule and has proper formatting? The demand schedule for new boats Price ($) Quantity Demanded $500 5500 $1000 5000 $1500 4500 $2000 3500 $2500 3000 $3000 2000 $3500 1000 $4000 150 O 3100 10 NEW 3000 1000 THE None of the demand curves accurately represent the data in the schedule 9000 1000 3000 2000 . 1000 New Boats 1000 4000 New Boats Demanded New Boats 200 6000 7000

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Quantity of Miami Dade Shades 1st pair 2nd pair 3rd pair 4th pair Marginal Cost (dollars) producer surplus will equal $105. there will be a surplus; as a result, the price will fall to $95. $60 95 140 185 Refer to Table 4-4. The table above lists the marginal cost of sunglasses by Miami Dade Shades, a firm that specializes in producing designer sunglasses. If the market price for a pair of Miami Dade Shades sunglasses is $130, A they will produce three pairs. B producer surplus from the first pair is $35.

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Table 17-2 The information in the table depicts the total demand for wireless Internet subscriptions in a small urban market. Assume that each wireless Internet operator pays a fixed cost of $100,000 (per year) to provide wireless Internet in the market area and that the marginal cost of providing the wireless Internet service to a household is zero. Quantity 0 2000 4000 6000 8,000 Price (per year) $180 $150 $120 $90 $60 10,000 $30 12,000 $0 Refer to Table 17-2. Assume that there are two profit-maximizing wireless Internet companies operating in this market. Further assume that they are not able to "collude" on price and quantity of wireless Internet subscriptions to sell. How many wireless Internet subscriptions will be collectively sold (by both firms) when this market reaches a Nash equilibrium? Oa. 2000 Ob.4000 OC. 6000 O d. 58000