Draw a graph of the aggregate supply curve

Assignment Help Business Economics
Reference no: EM13869371

Assume that there are 100 identical firms that would be willing to sell 10 units each of the same good if the market price were $5 per unit. They have identical individual supply curves that are positively sloped straight lines that go through the origin. 50 of the firms are foreign firms and 50 are domestic firms.

a. Draw a graph of the aggregate supply curve. Indicate on your aggregate supply curve the quantities supplied at the prices of $5, $10 and $20.

b. Assume now that the government imposes a quota limiting each of the 50 foreign firms to a maximum of 5 units each. Draw the new aggregate supply curve that shows the effect of the quota. Indicate on your graph the quantities supplied at the prices of $5, $10 and $20.

c. Determine the equation of the aggregate supply curve in part b.

Reference no: EM13869371

Questions Cloud

Lotteries and expected utility : Lotteries and expected utility. An expected utility maximizing decision maker declares that he prefers a lottery that pays $5 and $10 with equal probability to a lottery that pays $10 with probability 3 4 , and $0 with probability 1 4 . Which would t..
Confidence on the demand for money : Confidence on the demand for money is log M=14.666+.021logC-.036log r m- real money balance c consumer confidence r is interest rate paid on bank deposit. Based on this study How 5% increase impact the demand for money a .Increase or decrease 1.8%, d..
Healthcare service conformed to model of perfect competition : Suppose the market for healthcare services conformed to the model of perfect competition presented in class, as represented in the figures below. If the government levied a $10 tax on providers for each service they provided, how would the market pri..
Find the equilibrium price and quantity for this market : Assume the market for oil is perfectly competitive, with the following market demand and supply curves: Find the equilibrium price and quantity for this market. Calculate consumer and producer surplus in the competitive equilibrium.
Draw a graph of the aggregate supply curve : Assume that there are 100 identical firms that would be willing to sell 10 units each of the same good if the market price were $5 per unit. They have identical individual supply curves that are positively sloped straight lines that go through the or..
Make the assumption that economy has no external effects : Make the assumption that an economy has no external effects and all actors are perfectly informed. In addition, one good is produced by a firm who is a non-discriminating monopolist (known as Frontier Firm).
Great compromise between small and large population states : Which of the following is the result of the "Great Compromise" between the small and large population states?
Articles of confederation and new constitution : Which of the following is one of the differences between the Articles of Confederation and the new Constitution created during the Constitutional Convention in 1787?
Increasing and the income elasticity of demand : Suppose for three years income has been increasing and the income elasticity of demand for ACME tools is 0.3. What will the change in the number of ACME tools being purchased be, if the rise in income over the past 3 years has been 10%. If forecaster..

Reviews

Write a Review

 

Business Economics Questions & Answers

  Based off of walter energy publicly traded

How does the Average Total Cost (ATC) of the mines in Canada compared to the ATC of the Alabama mines? Sketch the ATC and Marginal Cost of the whole company (include all mines in the graph, the graph has to be approximate, it should give an idea of h..

  Compute the expected percent change in the stock

The current spot price of a stock is $50, the expected rate of return of the stock is 7%, and the volatility of the stock is 20%. The risk- free rate is 5%. Find an 80%-confidence interval for the stock price in 3 months. Also compute the expected pe..

  Assume that the bond payments are annual

A bond with 20 years remaining has a face value of $1000 and a coupon rate of 15%. Assume that the bond payments are annual and the coupon was just paid.(a) What is the yearly coupon payment?(b) What is the price of the bond if it has a 6% yield to m..

  Government ensure basic comprehensive medical care

A narrative essay on "Should government ensure basic comprehensive medical care for all citizens as a basic human right and pay for this through general tax revenues? Why or why not? What do you think would happen to your taxes? What would happen to ..

  Who will likely be targeted to make up the difference

If insurance premiums are going to be set below the actuarially fair level for a certain group, who will likely be targeted to make up the difference?

  Discuss an increase in the personal income tax will slow

Discuss an increase in the personal income tax will slow the growth rate of the economy.

  Calculate the average cycle stock for this item

Calculate the average cycle stock for this item using the order quantity in part a. c. Assuming there are 12 periods per year, calculate total cost per year.

  Difficult financial situations that lead to losses

Monopolies can sometimes find themselves in difficult financial situations that lead to losses. Suppose Mr. Burns Power Company has a monopoly for providing electricity in Springfield. His costs of upkeep are so high that he is persistently losing mo..

  Show the criteria used in making his decision

What is the expected return of migrating to the city? Show your work. Determine whether the individual should migrate to the city or not. Show the criteria used in making his decision.

  Illustrate wat would happen if suppliers set the price

Illustrate wat would happen if suppliers set the price of pizza at $15. Explain the market adjustment process.

  Determine the efficient amount of pollution abatement

Economists discuss that there is an efficient amount of pollution abatement. Why is the efficient amount of abatement unlikely to be either zero or 100 percent?

  Suppose that a big mac costs 500 in new york and sf30 in

suppose that a big mac costs 5.00 in new york and sf30 in geneva. suppose further that the price of 1sf on that day is

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd