Econ Assignment 1-3
Autor: Sharon • February 21, 2018 • 555 Words (3 Pages) • 668 Views
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6(b): The minimum supply-price equals the lowest price at which a producer is willing to produce the given quantity. The supply schedule indicates the minimum supply-price. Xavier’s minimum supply-price for 20 rides is $80; Yasmin’s minimum supply-price is $90; and Zack’s minimum supply-price is $100.
7(a): The quantity of rides is supplied is 30 when the price is $70 per ride. The marginal social cost of any quantity is equal to the price for which that quantity will be supplied, so when the total number of rides is 30, the marginal social cost equals $70 per ride.
7(b): When the total number of rides is 30, Xavier supplies 15 rides, Yasmin supplies 10 rides, and Zack supplies 5 rides. The marginal cost for each firm is $70.
8: Xavier’s producer surplus = × ($70 - $40) × 15 = 225[pic 4]
Yasmin’s producer surplus = × ($70 - $50) × 10 = 100[pic 5]
Zack’s producer surplus = × ($70 - $60) × 5 = 25[pic 6]
The market producer surplus = 225 + 100 + 25 = $350
Chapter 6
13(a): With no tax on brownies, the price is 60 cents a brownie and 4 million a day are bought.
13(b): The price paid by buyers, including the tax, is 70 cents a brownie, and 3 million brownies a day are bought. The price received by sellers, excluding the tax, is 50 cents a brownie. Consumers and sellers each pay 10 cents for the tax on a brownie.
13(c): The price received by sellers, excluding the tax, is 50 cents a brownie, and 3 million brownies a day are consumed. The price paid by buyers, including the tax, is 70 cents a brownie. Consumers and sellers each pay 10 cents of the tax.
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