MaximumActual PricePersonPrice Willing(EquilibriumPersonTo PayPrice)MinimumAcceptablePriceActual Price(EquilibriumPrice)Bashir$ 17$ 10Chander$ 5$ 10Barb1410Chaaya610Bill1310Chuck710Beeja1210Chazen810Brent1110Chuma910Blessing1010Chad1010Instructions: Enter your answers as a whole number.a. What are the equilibrium price and quantity for the data displayed in the two tables?bag(s)b. Instead of bags of oranges, assume that the data in the two tables deal with a good (such as fireworks displays) that can beenjoyed by free riders who do not pay for it. If all the buyers in the two tables free ride, what quantity will private sellers supply?c. Assume that we are back to talking about bags of oranges (a private good), but the government has decided that tossed orangepeels impose a negative externality on the public that must be rectified by imposing a tax of $4-per-bag on sellers. What is thenew equilibrium price?

The objective of the question is to determine the equilibrium price and quantity, the quantity…

Answered: Maximum Actual Price Person Price…

Economics Today and Tomorrow, Student Edition

1st Edition

ISBN:9780078747663

Author:McGraw-Hill

Publisher:McGraw-Hill

Chapter7: Demand And Supply

Section: Chapter Questions

Problem 20AA

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3. Determinants of demand The following graph shows the demand curve for sedans (for example, Toyota Camrys or Honda Accords) in New York City. For simplicity, assume that all sedans are identical and sell for the same price. Initially, the graph shows market demand under the following circumstances: Average household income is $50,000 per year, the price of a gallon of gas is $4.00 per gallon. Use the graph input tool to help you answer the following questions. You will not be graded on any changes you make to this graph. Note: Once you enter a value in a white field, the graph and any corresponding amounts in each grey field will change accordingly. Graph Input Tool Demand for Sedans Demand for Sedans 40 I Price of a sedan 15 (Thousand of dollars) Quantity Demanded 563 (Sedans per month) Demand Shifters Average Income (Thousands of dollars) 50 Demand 10 Price of Gas 4 (Dollars per gallon) 100 200 300 400 500 600 700 800 900 QUANTITY (Sedans per month) PRICE (Thousands of dollars per…
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10. What happens to the demand curve for an inferior good if a consumer's income increases? Show me using a diagram, please.

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