1 A rapid Covid test in New York sells for $50 dollars. Currently, 2000 tests are purchased per day. Recently two labs that produce rapid tests for New York closed. At the same time the state of New York requiredthat all public-school teachers take a rapid Covid test daily if not vaccinated. Because of these two changes,The equilibrium price will increase and change in the equilibrium quantity is ambiguous.The equilibrium price will increase and change in the equilibrium quantity is unambiguous.The change in the equilibrium price is ambiguous but the equilibrium quantity will increase.The equilibrium price will decrease and change in the equilibrium quantity is ambiguous.O O OO

Closing of labs that produced rapid tests will decrease the supply of rapid tests. This will lead to…

Answered: A rapid Covid test in New York sells…

Survey Of Economics

10th Edition

ISBN:9781337111522

Author:Tucker, Irvin B.

Publisher:Tucker, Irvin B.

Chapter4: Markets In Action

Section: Chapter Questions

Problem 1SQP

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Define Availability of substitutes?
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The demand for watches is given by p= 7000 - 2q dollars and the supply of watches is given by p = 0.01q2 + 2q + 1000 dollars where q is the number of watches demanded and supplied when the price per watch is p dollars. Based on the information provided calculate the equilibrium quantity and the equilibrium price for watches.
Consider two markets: the market for coffee and the market for hot cocoa. The initial equilibrium for both markets is the same, the equilibrium price is $4.50, and the equilibrium quantity is 35.0. When the price is $11.75, the quantity supplied of coffee is 59.0 and the quantity supplied of hot cocoa is 103.0. For simplicity of analysis, the demand for both goods is the same. Using the midpoint formula, calculate the elasticity of supply for hot cocoa.

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