13 Feb 2021

 

Price

Quantity Demanded

Quantity Supplied

0.00

1350

0

5.00

1200

300

10.00

1050

600

15.00

900  

900

20.00

750

1200

25.00

600

1500

30.00

450

1800

35.00

300

2100

 

a) The table shows the demand and supply schedules for tuna sashimi (sushi). Plot both Demand and Supply on a piece of paper and attach it as a photo to this document. Label everything that’s relevant and find the equilibrium price and quantity.
b) Calculate the consumer surplus, producer surplus, and total surplus at the market equilibrium.
c) Now suppose the mayor of Vancouver (who loves sushi) thinks the equilibrium market price of tuna sashimi is too high. Briefly describe how the mayor can use price controls to change the price so he is happy. Show this in the graph in part (a).

Yusra Anees
13 Feb 2021

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