Question

8. Assume that bad weather shifts the supply curve for papayas along the demand curve to the left which increases the papaya price to $1.06/papaya. If the original equilibrium price of papayas is 53cents/papaya and the original equilibrium quantity is 22,535,300 papayas, the elasticity of papaya supply is 1.15 and the elasticity of demand is -0.15, what is the new equilibrium quantity demanded of papayas? What is the new equilibrium quantity supplied? (HINT AGAIN: Be careful! Think about it.) ANSWER:

9. The average price of gasoline in Texas in January 2018 was about $2.248/gallon and the Texas consumption of gasoline that month was 40.555 million gallons. The average price of gasoline in Texas was about $2.354/gallon last month (January 2019). The elasticity of Texas gasoline demand is -0.22. By how much did gasoline consumption in Texas change between January 2018 and last month? What was Texas gas consumption last month? ANSWER:

10. The government has implemented a new policy to support the price of chickpeas at $12.81/cwt. (A cwt means “hundred weight” or 100 pounds but that is not important for the answer). If the chickpeas market equilibrium price is $10.55/cwt, the equilibrium quantity of chickpeas is 69.432 million cwt, the elasticity of supply is 0.25, and the elasticity of demand is -0.75, then what is the new quantity supplied and the new quantity demanded of chickpeas at the support price? How much chickpeas would the government need to buy to keep the price supported at $12.81/cwt?

Answer #1

as per answering guidelines, first question is answered.

5. If the equilibrium quantity of quinoa produced in Peru is 250
million lb and the equilibrium price of quinoa is $2.25/lb, by how
much would the quantity supplied change if the price dropped by 60%
given a quinoa supply elasticity of 0.25?
ANSWER:
6. In the week before the Superbowl, guacamole cost
$5.55/package and 10,255,500 packages were purchased. This week the
price has gone down to $4.44/package. How many packages of
guacamole will be supplied today if the price...

Assume that bad weather shifts the supply curve for pineapples
along the demand curve to the left which increases the pineapple
price to $2.53/pineapple. If the original equilibrium price of
pineapples is $1.15/lb and the original equilibrium quantity is
1,455,300 pineapples, the elasticity of pineapple supply is 0.85
and the elasticity of demand is -0.15, what is the new equilibrium
quantity demanded of pineapples? What is the new equilibrium
quantity supplied?

Assume that advertising shifts the demand curve for jeans to the
right along the supply curve which pushes the jean price up by
125%. If the old equilibrium price of jeans is $8.76/pair and the
old equilibrium quantity is 230 million pair, the elasticity of
jean supply is 0.60 and the elasticity of demand is -0.766, what is
the new equilibrium quantity demanded of jeans? What is the new
equilibrium quantity supplied?

Suppose the market demand curve for a product is given by
QD=100-5P and the market supply curve is given by
QS=5P
a. What are the equilibrium price and quantity?
b. At the market equilibrium, what is the price elasticity of
demand?
Suppose government sets the price at $15 to benefit the
producers.
What is the quantity demanded?
What is the quantity supplied?
What is the amount of the surplus?
Suppose market demand increases to Qd=200-5P.
What is the new equilibrium...

Suppose in Diamond Land people mine diamonds, and you have a
demand and supply curve for diamonds, where P is the price of
diamonds and Q is the quantity demanded for diamonds (in
pounds):
P=300-0.5Q
P=100+0.5Q
Please find the equilibrium price and quantity for diamonds.
Please graph supply and demand curves and show the equilibrium
price and quantity demanded on the graph. Please also label the
axes, intercepts, and curves.
Suppose the government of Diamond Land wants to implement price...

Consider a market that can be represented by a linear demand
curve, QD = 200 – 2PD, (where QD is the quantity demanded and PD is
the price that demanders pay) and a linear supply curve that QS = ½
PS (where QS is the quantity supplied and PS is the price that
suppliers get).
a. What is the equilibrium price?
b. What is the equilibrium quantity?
c. What is demand elasticity at the equilibrium point?

Consider a simultaneous shift of both the demand curve and the
supply curve.
Before the shift, the market equilibrium is at a point where the
price is 6 and the quantity is 25. Also, before the shift, with
each additional unit increase in price, the quantity supplied
increases by 5 and the quantity demanded decreases by 5.
Now, due to a change in some government policy, the demand
increases by 10 at all price levels. At the same time, the...

Problems 2–3 are based on the model of demand and supply for
coffee as shown in Figure 3.10 "Changes in Demand and Supply". You
can graph the initial demand and supply curves by using the
following values, with all quantities in millions of pounds of
coffee per month: (1 Point each)
Price Quantity demanded Quantity
supplied
$3
40
10
4
35
15
5
30
20
6
25
25
7
20
30
8
15
35
9
10
40
Suppose the quantity...

For each of the following assume that the supply curve shifts
while the demand curve remains constant. What is the direction of
the supply shift and relative elasticity of demand?
1.) Price falls significantly. Quantity hardly changes at
all.
Demand is ____
a.) perfectly elastic
b.)highly inelastic
c.)highly elastic
2.) Prices do not change. Quantity decreases significantly.
Demand is _________
a.) highly elastic
b.) perfectly elastic
c.) highly inelastic
Can anyone help?

On a graph of a demand curve, total consumer surplus
equals:
A-the demand curve.
B-the area above the demand curve and beneath the market
price.
C-the market price.
D-the area beneath the demand curve and above the market price.
Total producer surplus equals:
A-the area above the supply curve and beneath the market
price.
B-the area beneath the supply curve and above the demand
curve.
C-the market price.
D-the supply curve.
An increase in supply refers to:
...

ADVERTISEMENT

Get Answers For Free

Most questions answered within 1 hours.

ADVERTISEMENT

asked 7 minutes ago

asked 12 minutes ago

asked 30 minutes ago

asked 37 minutes ago

asked 59 minutes ago

asked 1 hour ago

asked 1 hour ago

asked 1 hour ago

asked 1 hour ago

asked 1 hour ago

asked 1 hour ago

asked 1 hour ago