ECON 101 Quiz: ECON 101 UW Madison Quiz2Summer2016

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turquoisegnu128

31 Jan 2019

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Show your work: (1 point) the market for mangoes is initially in equilibrium. You are told that incomes increase and that mangoes are an inferior good. You are also told that at the same time, labor costs for producing mangoes decreases. From this information you predict that the equilibrium price of mangoes will _______________ while the equilibrium quantity of mangoes. _____________: (4 points) consider the market for pencils. You are told that when the price is per pencil that 100 pencils are demanded and that 50 pencils are supplied. You are told that when the price is . 50 per pencil that 50 pencils are demanded and that 125 pencils are supplied. Assume that both the demand and supply curves in the pencil market are linear. From this information calculate the equilibrium price and equilibrium quantity of pencils in this market. 1: (3 points) consider the market for widgets where there are two firms.

Related Questions

19. Now you are told that in the short run there are 200 firms, including this one, in the industry, all with the same cost curves described above. Suppose that the demand curve facing the industry is given by the equation P= 125 - .075Q w here P is the price per unit and Q is the number of units demanded per day. The equilibrium price in the short run is: A) $25 B) $30 C) $35 D) $40 E) $45 F) $50 G) $55 H) $60 I) $65 J) none of the above

1. Presented below are demand and supply schedules for bread in East Yeastville, Colorado.

| price | quantity demanded | quantity supplied |

| ($/loaf) | (loaves / week) | (loaves / week) |

| 5.00 | 1000 | 6000 |

| 4.50 | 1300 | 4500 |

| 4.00 | 1600 | 4000 |

| 3.50 | 2000 | 3500 |

| 3.00 | 3000 | 3000 |

| 2.50 | 3200 | 2700 |

| 2.00 | 4000 | 2200 |

| 1.50 | 4500 | 1800 |

| 1.00 | 5400 | 1400 |

| .50 | 7000 | 1200 |

a. Is the Law of demand satisfied? Yes/no. How do you know?

b. What is the equilibrium price? _______ And the equilibrium quantity? ________

c. At a price of $4.00, is there a shortage or surplus? __________. How big is it? ______

d. At a price of $1.00, how much would be bought and sold? _________

e. Suppose that supply increases by 1800 units at each price. At the original equilibrium price is there

a shortage or a surplus? When the market adjusts to its new equilibrium, what

will the new price be? And the new equilibrium quantity?

maroonskunk761

Market for bread

Price	Quantity demanded	Quantity supplied
50	0	40
40	10	30
30	20	20
20	30	10
10	40	0
0	50	0

1. What is the equilibrium price and quantity in this market?

2. Suppose that the price of butter falls dramatically (due to lower butter production costs) so that the quantity demanded for bread increases by 40 units at any price. By how much does the price of bread change? By how much does quantity change?

3. Suppose that bread buyers are forced to wait in long lines in order to buy bread. If the value of their time can be estimated at $10/ hour, about how long would you expect people to be waiting in line to get a loaf of bread?

4. Suppose the government wishes to alleviate the problems caused by upward price pressure due to the price ceiling by taking all fresh bread off the market; all bread sold must be at least 1 day old. Would you expect this regulation to achieve the desired effect? Explain your answer?

ECON 101 Quiz: ECON 101 UW Madison Quiz2Summer2016

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