Suppose the supply curve of portable radio rentals in Golden Gate Park is given by: P= 5 +0.1Q, where P is the daily rent per unit in dollars and Q is the volume of units rented in hundreds per day. The demand curve for portable radios is: P=20-0.2Q. If each portable radio imposes $3.60 per day in noise costs on others, by how much will the equilibrium number of portable radios rented exceed the socially optimal number? units (in hundreds).

A friend of yours is considering two cell phone service providers. Provider A charges $120 per month for the service regardless of the number of phone calls made. Provider B does not have a fixed service fee but instead charges $1 per minute for calls. Your friend's monthly demand for minutes of calling is given by the equation Qp = 150 - 50P, where P is the price of a minute. With Provider A, the cost of an extra minute is With Provider B, the cost of an extra minute is S Given your friend's demand for minutes and the cost of an extra minute with each provider, if your friend used Provider A, he would talk for minutes, and if he used Provider B, he would talk for minutes. This means your friend would pay S for service with Provider A and S for service with Provider B. Use the following graph to draw your friend's demand curve for minutes. Then use the green triangle to help you answer the questions that follow. Note: Yo U will not be graded on an. changeS Vou mako to tha 喜G

The market for pens in Howards is perfectly competitive with no externalities. Market demand is given by Q=165-P. Market Supply is given by Q=P-16.What is total Surplus in this market?

Suppose a town is planning to construct a new public park. Based on some market research, they have determined that the town’s 50 residents can be divided into two types with respect to their benefit from this public good. 20 of the town’s residents are of Type 1 and the other 30 residents are of Type 2. Each resident's individual demand for acres of park space is given by: Type 1: QD = 20 – P  Type 2: QD = 40 – 2P   a. Solve for the aggregate demand of the towns 50 residents as a function of the number of acres. Be sure to write down equations for each section of the aggregate demand curve, as well as the interval of quantities each section spans.   b.  Graph the aggregate demand curve calculated in part a. Make sure to label both intercepts, slopes, and the intersection of the two sections.

The cost (supply) of each "unit" of NPR (National Public Radio) is P=9. Derek's valuation for each unit of NPR (demand) is given by Pp=20-2Q, and Kim's valuation is given by Pk=10-Q. The social valuation of NPR is Ps= Q. The socially optimal amount of NPR is units. Without intervention, the private market would lead to an 수 of NPR. Suppose the government decides to subsidize NPR in order to achieve the socially optimal amount of NPR. The total demand function is Qr= The appropriate subsidy is $ (include 2 decimals) per unit of NPR

In competitive markets, we know that: P= MWTP P= MC MC= AC P= Min AC Which result(s) implies that the outcome is socially optimal?

Let's consider the market for spaces in medical schools (for doctors, say). Suppose the demand for space is given by QD=120-0.5P where P is the price of attending medical school (in thousands of dollars). Also suppose the supply is given by Qs=0.5P. The equilibrium price in this market is The equilibrium quantity of spaces provided is Going to medical school provides a private benefit to the person attending (the future doctor). But, it also benefits the public in that there are more doctors available to provide healthcare. Therefore, this a market with ✓externalities. Suppose that the additional benefit to society from each space in medical school is 60,000 dollars. In this case, the efficient quantity of spaces (that which would most benefit society) is The goverment could achieve the socially efficient outcome by an amount of ✓dollars per space. ✓the schools that provide spaces

Above is the demand schedule for tickets to a Carnegie Hall performance of the Grateful Dead. Carnegie Hall seats 1,800 people.   What is the equilibrium price and quantity for a concert of the Grateful Dead at Carnegie Hall?   If tickets were sold for $18, what would happen (be specific)?

The demand and supply of ethanol are given by QD = 8,000 – 2,000P and QS = 1,000P – 1,000, where P is price per gallon and Q measures gallons per minute. Suppose the government subsidizes ethanol at $0.30 a gallon that the producer pays. What does the subsidy cost the government? After the subsidy, what is the producer surplus? After the subsidy, what is the consumer surplus? After the subsidy, what is the deadweight loss?

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