Price D 1 D 2 S 1 S 2 $12 5 9 19 14 $10 8 12 17 12 $8 11 15 15 10 $6 13 18 13 8 $4 16 21 11 6 $2 18 24 9 4 Suppose that D2 and S1 are the prevailing demand and supply curves for a product. If the demand schedule changes from D2 to D1, then: Group of answer choices equilibrium price increases from $6 to $8. equilibrium quantity increases from 13 to 18 equilibrium quantity decreases from 15 to 13. equilibrium price decreases from $6 to $4.

Refer to Table 4-1. Suppose that D1 and S1 are the prevailing demand and supply curves for a product. If the demand schedule changes from D1 Price $12 $10 $8 $6 $4 $2 Table 4-1 D1 5 8 11 13 16 18 2925622 D2 12 15 18 21 24 S1 19 17 15 13 11 9 S2 14 12 10 8 6 4 equilibrium price decreases from $6 to $4. O equilibrium quantity decreases from 15 to 13. O equilibrium quantity increases from 13 to 18. O equilibrium price increases from $6 to $8 4

Suppose a retail seller of jeans currently has 40 customers. The retailer offers the following quantity discount to these 40 customers. Buy the 1* pair of jeans at a price of $100, buy a 2d pair of jeans at a price of $80, buy a 3d pair of jeans at a price of $60, and buy a 4th pair of jeans at a price of $40. Suppose the cost to the retailer for each pair of jeans is $40. Suppose of these 40 customers, all buy the 1ª pair of jeans, 30 of these 40 buy a 2nd pair of jeans, 20 of these 30 (i.e., those who bought a 2nd pair) buy a 3d pair, and 10 of the 20 (i.e., those who bought a 3rd pair) buy a 4t pair. The profit to the retailer from selling jeans to these 40 customers in this way equals: [10] A. $4000 В. С. $4600 $6200 D. None of the above [11] In the case of first degree price discrimination, each consumer is charged his/her reservation price. А. True В. False

Q4) Assume a market of a specific good. The demand and supply equation is as shown below: Pp = 70 – 3QD Ps = 5 + 20s The demand price elasticities is inelastic. From the firms' perspective, the revenue would be higher if price increases. Let's assume that the market is currently not at the equilibrium with the market price being higher by 2 units than the equilibrium price. 1. Find the market quantity 2. Find the difference in the revenue compared to the equilibrium 3. Find the new demand price elasticities

At which price equilibrium exist

A6

Homework 2 Q1) Assume a market of a specific good. The demand and supply equation is as shown below: Pp = 70 – 3QD Ps = 5 + 2Qs Find the equilibrium price 2. Find the equilibrium quantity 3. Find the demand price elasticities at the equilibrium 1. 4. Find the supply price elasticities at the equilibrium 5. Find the Consumer Surplus 6. Find the Producer Surplus

11. For a particular product the Demand and Supply functions are D(x) = 20 -0.05x and S(x) = 2 +0.002x² Sketch the graphs and using your calculator determine the equilibrium quantity and price. On the graph shade the consumers' and producers' surplus regions. Find the producers' and consumers' surplus. 26 22 20 18 16+ 14 124 10 8 10 30

Price D 1 D 2 S 1 S 2 $12 5 9 19 14 $10 8 12 17 12 $8 11 15 15 10 $6 13 18 13 8 $4 16 21 11 6 $2 18 24 9 4 If D2 and S1 represent the demand and supply schedules in a particular market, then the equilibrium price and quantity are _________ and _________, respectively. Group of answer choices $8; 15 $10; 17 $12; 9 $12; 10

Pace of Good X (dollars) C D D A S₁ D₂ D₁ ·01 Quantity of Good X In the diagram above, which of the following would most likely change equilibrium from point A to point D? O A(n) decrease in the price of good X O A(n) increase in population O A(n) decrease in the price of a complementary good A(n) decrease in the price of a substitute good O A(n) increase in the price of an input