Refer to the figure below. What will happen if the market price is $14? a) There will be a shortage of 20 units and producers will increase their Production • b) There will be a shortage of 40 units and producers will increase their Production • c) There will be a surplus of 40 units and prices will decrease • d) There will be a surplus of 20 units and prices will decrease

You are given the following market data for Venus automobiles in Saturnia. Demand: P = 35,000 - 0.5Q Supply: P = 8,000 + 0.25Q where P = Price and Q = Quantity. a. b. C. Calculate the equilibrium price and quantity. Calculate the consumer surplus in this market. Calculate the producer surplus in this market. Use the editor to format your answer

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

A baker will supply 17 jumbo cinnamon rolls to a cafe at a price of $3.91 each. If she is offered $3.15, then she will supply 4 fewer rolls to the cafe. The cafe's demand for jumbo cinnamon rolls is given by p = D(x) = -0.48x + 8.05. What is the equilibrium point? ___ rolls at a price of $ ___  each

This is the market for HOT CHOCOLATE, which is a normal good and is produced with cocoa beans. We know that hot tea is a substitute for hot chocolate and whipped cream is a complement. Quantity Surplus or Price Quantity Supplied Demanded Shortage $5 6,000 10,000 $4 8,000 8,000 $3 10,000 6,000 $2 12,000 4,000 $1 14,000 2,000 1. Complete the table above finding a Shortage or a Surplus. Draw a graphical illustration of the market and find the equilibrium price and equilibrium quantity. For the remaining questions, explain by words or show graphically how equilibrium price and equilibrium quantity of hot chocolate would change (due to changes in Supply or Demand) if: 2. The price of cocoa beans falls; 3. The price of tea falls; 4. Consumer income falls because of a recession.

Over the past few year's consumer tastes and the number of buyers in the market for a game called 'pickle ball' have increased dramatically. Thus, the demand for tickets to pickle ball events has increased. Before this all started the equilibrium price of a ticket to a pickle ball event was negative. This means that: A few years ago, there would have been a surplus of tickets even at a price of zero, now the invisible hand has pushed prices to greater than zero. A) A few years ago, the quantity of tickets demanded was less than quantity supplied. B) Pickle ball event tickets resembled the market for recyclable cardboard a few years ago C) Greater demand for pickle ball tournament tickets will lead to a greater demand - and higher pay - for professional pickle ball players. D) All of the above. E) B and D only

a) In the market for sugary drinks, the current equilibrium price is $10 and the equilibrium quantity is 30. The demand choke price is $50 and the supply choke price is $5 (a) Draw a demand and supply diagram, and shade the regions that represent consumer and producer welfare. Calculate the Total welfare in this market b) In this market, you now know that E D = −0.4 and E S = 1.2. Redraw your diagram in part (a) with the correct sloping curves. In this part you do not have to shade the welfare regions. All you need to do is redraw the diagram with the same equilibrium price and quantity, and choke prices but adjust the slope of each curve to reflect their respective elasticity c) If a tax was to be implemented in this market, what percentage of the burden is borne by the buyer? d) The government plans to discourage the consumption of sugary drinks and as such, they implemented a $1 tax on every bottle produced. In this situation, the suppliers are taxed directly but they hope to pass…

In a market, if the price of a good is set below the equilibrium price, what will happen? a) Shortage b) Surplus c) Equilibrium d) Price ceiling

01. What would be the impact in this market, of a price floor set at $10     a) A market surplus of 7     b) A market surplus of 10     c) A market surplus of 21     d) There would be no impact     e) A market shortage of 7     f) A market shortage of 10     g) A market shortage of 21 02. What would be the impact in this market, of a price floor set at $13     a) A market surplus of 7     b) A market surplus of 10     c) A market surplus of 21     d) There would be no impact     e) A market shortage of 7     f) A market shortage of 10     g) A market shortage of 21

If the economy goes into a recession and incomes fall, what happens in markets? Prices of inferior goods go up because the demand for them increases Prices of normal goods go up because the demand for them increases Prices of all goods go down None of the other answers is correct Suppose the demand curve is given by P=10-Q and the supply curve by Q=P If the price in the market is given by $7, then The market is in equilibrium There is a a surplus in the market There is a shortage in the market Increasing the price will result in an increase in the quantity demanded