Price Refer to the figure above. In what way would a decrease in supply affect market efficiency? 110 100 90 80 70 60 50 45 40- 30 20 10- Price Supply Demand 10 20 30 40 50 60 70 80 90 100 110 120 130 140 150 160 170 Quantity Refer to the figure above. In what way would a decrease in supply affect market efficiency?
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- Consider a market with the following supply and demand. (It may help to draw a graph for these questions.) P 5 6 7 8 9 10 11 12 13 14 QS 200 300 400 500 600 700 800 900 1000 1100 QD 800 750 700 650 600 550 500 450 400 35 For the questions assume that there is a $3 external COST. 1. Now imagine that they use tradable allowances. If they cap the quantity at 400 what would the value of these allowance be in the market? (Assume the market is perfectly competitive and that "one allowance" lets you produce one unit of the good.) 2. What will they be worth if the quantity is capped at 500? 3. What if it is capped at 700?Consider a market with the following supply and demand. (It may help to draw a graph for these questions.) P 5 6 7 8 9 10 11 12 13 14 QS 200 300 400 500 600 700 800 900 1000 1100 QD 800 750 700 650 600 550 500 450 400 350 If there is an external cost of $3, what is the efficient quantity? 500 (already answer) If there is an external benefit of $3, what is the efficient quantity? 700 (already answer) For the remaining questions assume that there is a $3 external COST. If the government wants to get the efficient quantity with a per/unit tax, how much should the tax be? 3 (already answer) Now imagine that they use tradable allowances. If they cap the quantity at 400 what would the value of these allowance be in the market? (Assume the…What is the law of demand? A) As the price of a good increases, its demand decreases B) As the price of a good increases, its demand increases C) Demand remains constant regardless of price changes D) Demand is directly proportional to supply Don't use chatgpt otherwise give 20 downvotes.
- Which of the following measures how responsive demand will be to a change in price? Question 5 options: A) Pricing adjustment B) Demand extension C) Price elasticity D) Demand curveSuppose that the elasticity of demand at a given price level is E(p)=.8. What does that mean? Select both the correct answer to elastic, unit, or inelastic as well as what the company should do to increase revenue. Since 0Given the demand function D(p) /175 - 3p, Find the Elasticity of Demand at a price of $39 = At this price, we would say the demand is: Elastic Unitary O Inelastic Based on this, to increase revenue we should: Raise Prices Lower Prices Keep Prices UnchangedWhat is the law of demand? A) As the price of a good increases, its demand decreases B) As the price of a good increases, its demand increases C) Demand remains constant regardless of price changes D) Demand is directly proportional to supply Don'tWhich of the following statements regarding price elasticity is incorrect? a. A product with a perfectly inelastic demand would have the same demand even as prices change. b. A product with a perfectly inelastic demand would see demand change as prices change. c. When demand is price elastic, lower prices stimulate demand. d. When demand is price elastic, higher prices reduce demand.the market? 10.6 Semistrong Efficiency If a market is semistrong form efficient, is it also weak form efficient? Explain. 10.7 Efficient Markets Hypothesis What are the implications of the efficient5) Which of the following will cause a movement from one point on an AD curve to another point on the same AD curve? a) a change in government expenditures b) a change in the price level c) a change in net exports d) all of the options provided 6) Here is a consumption function: C = CO + MPC(Yd). If MPC is 0.80, then we know that a) as Co rises by $0.80, Yd rises by $1. b) Yd rises by $0.80. c) as Yd rises by $1. Co rises by $0.80. d) as Yd rises by $1, C rises by $0.80. 7) An aggregate demand (AD) curve shows the a) none of the options provided is correct b) quantity of output that people are willing and can afford to buy at different price levels, ceteris paribus c) quantity of output that people are willing as well as able to produce and sell at different price levels, ceteris paribus. d) value of a particular good that people are willing and able to buy at a particular price, ceteris paribus. d) value of a particular good that people are willing and able to buy at a particular…A market demand function is given by the equation QD = 180 – 2P. Find the value of consumer surplus if price is equal to 65. Illustrate your demand curve and the area of consumer surplus. Identify the area of consumer surplus, the price at which demand is zero, the level of demand if price was zero and the slope (show calculation if required).Which of the following statements regarding price elasticity is incorrect? A product with a perfectly inelastic demand would have the same demand even as prices change. A product with a perfectly inelastic demand would see demand change as prices change. When demand is price elastic, lower prices stimulate demand. When demand is price elastic, higher prices reduce demand.SEE MORE QUESTIONS