Ask Question, Ask an Expert

+1-415-315-9853

info@mywordsolution.com

Ask Microeconomics Expert

The table below shows complete data for buyers and sellers of a given commodity. Each buyer and seller in the market is assumed to supply or demand a single unit of the good. The sellers' column shows the number of sellers in the market at each possible production cost level. Likewise, the buyers' column shows the number of buyers in the market at each possible subjective valuation of the good. (See the notes from Lecture 3 if you need help interpreting the table.)

a) Draw the graph like the one shown in lecture to show the market supply and demand curves. Your graph should show intersecting supply and demand curves. Each should have a stair-step appearance, with the right end of each step reflecting the accumulated level of supply or demand for the corresponding price level.

Value Sellers Buyers
$2 4 6
$4 5 10
$6 5 5
$8 8 4
$10 8 5

b) Find the market equilibrium price and quantity. Is the resulting allocation efficient? describe. (In this setting, define "efficiency" to mean that there's no alternative allocation or set of trades, which would results in larger total profits over all traders).

c) Suppose a unit tax is imposed on buyers, thus decreasing each of the net values or buyers in the table by one. Find the new equilibrium price and quantity, and compare the efficiency of the resulting allocation with the case of no tax.

Microeconomics, Economics

  • Category:- Microeconomics
  • Reference No.:- M942160

Have any Question? 


Related Questions in Microeconomics

Assignment swot analysiswrite a white paper in which you

Assignment SWOT Analysis Write a white paper, in which you describe how a SWOT analysis can help companies maximize their marketing strategies in a global context. Support your views with appropriate evidence. Your answe ...

From the scenario for katrinas candiessuggest one1method in

From the scenario for Katrina's Candies,suggest one(1)method in which Herb could use a cost-benefit analysis to argue for or against an expansion. Create three optimal decision rules for Katrina's Candies(e.g.,whether to ...

Economics money bankingintroductioneconomics money and

Economics Money Banking Introduction Economics Money and Banking focuses on the traditional model of money and banking in the American banking system, a mixed capitalist economy. The course explains the functions of mone ...

Assignmentcreate a powerpoint presentation of no more than

Assignment Create a PowerPoint presentation of no more than nine slides (excluding title and reference slides) that provides synthesis of specific elements using the research article provided in this unit's Studies, "The ...

Finding the equilibrium pointat the beginning of 2005

FINDING THE EQUILIBRIUM POINT At the beginning of 2005, Toyota sold 175,000 vehicles. Based on the company's analysis of the small car market, the company believed that $16,000 was the equilibrium price based on the foll ...

Questions -q1 consider the market for a course of

Questions - Q1. Consider the market for a course of antibiotics. Suppose the supply of antibiotics follows P = 5 + 2Q S and the demand follows P = 20 - 20 D . Here, Q represents antibiotics, denominated in millions of un ...

Assignmentthe soft drink and juice beverage industry is

Assignment The soft drink and juice beverage industry is very competitive with more companies entering the market each year. This week our case study is the Dr Pepper Snapple Group, a major player in the industry. Your a ...

Economic essayi want you to keep up with current events by

Economic essay I want you to keep up with current events by reading The Wall Street Journal or The New York Times (you have free access to these resources). When you find an article that deals in some way with a topic be ...

Assignmentwhen completing the las in the weekly discussions

Assignment When completing the LAs in the Weekly Discussions please follow these directions and format: In your narrative response to the LAs, start out by first clearly identifying, defining and explaining the managemen ...

Assignmentquestion 1 how is a project baseline used to

Assignment Question 1) How is a project baseline used to guide the execution of the project's work, to evaluate progress and performance, and to control the project? Also, as you continue to think about monitoring and co ...

  • 4,153,160 Questions Asked
  • 13,132 Experts
  • 2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

A cola-dispensing machine is set to dispense 9 ounces of

A cola-dispensing machine is set to dispense 9 ounces of cola per cup, with a standard deviation of 1.0 ounce. The manuf

What is marketingbullwhat is marketing think back to your

What is Marketing? • "What is marketing"? Think back to your impressions before you started this class versus how you

Question -your client david smith runs a small it

QUESTION - Your client, David Smith runs a small IT consulting business specialising in computer software and techno

Inspection of a random sample of 22 aircraft showed that 15

Inspection of a random sample of 22 aircraft showed that 15 needed repairs to fix a wiring problem that might compromise

Effective hrmquestionhow can an effective hrm system help

Effective HRM Question How can an effective HRM system help facilitate the achievement of an organization's strate