QUESTION 1 Refer to the information provided in Figure 4.6 below to answer the question(s) that follow. Equilibrium in this market occurs at the intersection of curves S and D. Price/unit P3 P2 P1 Figure 4.6 A G B E Ic F S D Quantity/time Refer to Figure 4.6. If price is P1, producer surplus is area О А. G. A + B + E. B + E + G.
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- A. Diagram 2- Which of the following area (A-C, select 1), represents the additional surplus fromthe original sellers as a results of priceincreasing from P1 to P2? B. Diagram 2- Which of the following area (A-C, select 1), represents the additional surplus fromthe new sellers as a results of priceincreasing from P1 to P2?1. This pandemic, the prices for vegetables in a certain place has went down. Many people went to the market to buy vegetables but they ended up failed because they werent able to buy their needs. The prices of the vegetables are 40,50,60,80,90 and the amount of vegetables at the market ranges from 100,120,140,160,180. Explain how the changes occur using a grahical illustration or interaction of demand curve and supply curve. 2. Is the quantity demanded risen and the quantity supply decrease?al The dernand and supply schedules for wine are above. Plot both in a graph. Find the equilibrium price and quantity b) if the price of wine is currently $30, what is this situation called in the market? Plot this scenario in same graph in part (a) c) For part (b), how big is the gap between what consumers want and what suppliers want? d) What would eventually happen to price and quantity in the market in part (b)?
- X Question 7 Figure 4-3 Price per pound ($) o P₁ Po 0 B D G C с E 0₂ H Q₁ H bad Supply Demand Quantity of granola (lbs) Figure 4-3 shows the market for granola. The market is initially in equilibrium at a price of P1 and a quantity of Q1. Now suppose producers decide to cut output to Q2 in order to raise the price to P2. Refer to Figure 4-3. At the price P2, consumers are willing to buy the Q2 pounds of granola. Is this an economically efficient quantity?1) In the market for smart phones, explain how will thefollowing statement impact the equilibrium price andquantity?Average incomes increase and new technology improvesproductive efficiency(Make sure that you also consider the effect on demandand supply curves where appropriate)The figure shows the supply and demand for online music. Suppose that an economic downturn decreases household wealth and erodes consumer confidence. Move the supply and/or demand curves to reflect the primary effect this would have on the market for online music. You can assume that online music is a normal good. Also select the end result of equilibrium price and quantity. Equilibrium price increases. O remains constant. Equilibrium quantity increases. remains constant. decreases. O change is ambigous. decreases. change is ambiguous. Price (5 per track) Quantity (number of tracks) Supply Demand
- Refer to Figure 2-1 What is the market equilibrium quantity?The market for pizza has the following demand andsupply schedules:Price Quantity Demanded Quantity Supplied$4 135 pizzas 26 pizzas5 104 536 81 817 68 988 53 1109 39 121a. Graph the demand and supply curves. What arethe equilibrium price and quantity in this market?b. If the actual price in this market were above theequilibrium price, what would drive the markettoward the equilibrium?c. If the actual price in this market were below theequilibrium price, what would drive the markettoward the equilibrium?• You are given a task for analysis the market for Sport Bike. You found that when the market price of bike is $500 the market demand is 9,200 bikes, whereas the market supply is 6,000 bikes. Yet, when the price rises to $650 the market demand is 6,800 bikes but the market supply is 8,000 bikes. Your tasks are: a) Define the equations of market demand and market supply for bike. b) Find the equilibrium-price and equilibrium– quantity and draw a graph to show this market. c) Estimate the consumers' surplus, producers' surplus and bike market's surplus.
- Total surplus is maximized at the equilibriumprice and quantity. When demand increases,price increases. Explain how total surplus is stillmaximized if price increases due to an increase indemandRefer to the information provided in Figure 3.18 below to answer the question(s) that follow. 6 B S A 4 3 1.50 100 150 250 350 400 Q Millions of pounds of buritos Figure 3.18 Refer to Figure 3.18. The market is initially in equilibrium at Point A. If demand shifts from D1 to D2 and there is an excess demand of 150 million pounds of burritos, the price of burritos would be a. $1.50. - b. $3.00. CorrectAsap