ECO200Y5 Study Guide - Final Guide: Broccoli, Marginal Cost, Economic Surplus

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2 Sep 2014

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Tutorial 8 - wednesday - june 18, 2014 - 4pm - 5pm. Suppose the daily demand curve for flounder at cape may is given by qd = 1,600. How would your answers to part (a) and part (b) change? (d) now assume that cape may fishermen can, at some cost, choose to sell their catch elsewhere. Specifically, assume that the amount they will sell in. Qs = -1,000 + 2,000p for qs > 0. Where q is the quantity supplied in pounds and p is the price per pound. What is the lowest price at which flounder will be supplied to the cape may market? (e) given the demand curve for flounder, what will the equilibrium price be? (f) suppose now demand shifts to. In the very short run, each of the firms has a fixed supply of 100 units.

Related Questions

Taxation Question (SHOW ALL WORK)

Suppose that the demand curve (hundreds) for apples is given by Qd = 140 - 5P, where Qd is the number of pounds demanded per year and p is the price per pound. The supply of apples can be described by Qs = 40 + 5P, where Qs is the number of pounds provided.

What is the equilibrium price? (Hint: At the equilibrium, quantity demanded and quantity supplied are equal, Qd = Qs.)

What is the equilibrium quantity supplied and demanded?

Calculate the consumer surplus at the equilibrium price.

Calculate the producer surplus at the equilibrium price.

Calculate the total surplus at the equilibrium price.

Now suppose that the government imposes a tax of $8 per each pound sold, paid by the producers. In this case, what are the price and the consumer surplus?

turquoiseelephant900

Suppose SRAS is horizontal as believed by Keynesian economists and is given by P = 110 and that the aggregate demand curve is P =200-2Q

Where, P: price level Q: real GDP ( in billion $)

Now suppose that the SRAS shifts upward from P=110 to P = 115. What will happen to the inflation rate? What will happen to the real output?

The following regression equations are from the study of the demand for chicken in the United States for the time period 1960 - 1982. The estimated is given below (t-statistics in parenthesis):

Y = 37.24 + .0050 (X₁) - .6104(X₂) + .1977 * (X₃) + .0693*(X₄)

(9.99) (1.031) (3.742) (3.321) (1.357)

R² = .9424

n = 34, k = 5

Y = Per Capita Consumption of Chickens in pounds

X₁= Real Disposable Income per capita in dollars

X₂ = Real Retail Price of Chicken per pound in cents

X₃ = Real Retail Price of Pork per pound in cents

X₄ = Real Retail Price of Beef per pound in cents

a. Using this equation suppose you are given the following values of your independent/explanatory variables: X₁ = 1165.9; X₂ = 58.3; X₃ = 123.5; X₄ = 142.9. Forecast the value of chicken consumption given the specified values of each X.

b. Calculate the point price elasticity of demand for chicken given the values in part a.

Note: EP = Price Elasticity of Demand

EP = %?Q = ?Q * P

%?P ?P Q

c. Interpret the elasticity coefficient in part b.

Please show all calculations and complete explanation on how to solve this problem.

ECO200Y5 Study Guide - Final Guide: Broccoli, Marginal Cost, Economic Surplus

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