Customer Service Chat
Get quote & make Payment
Applied Microeconomics, Economics, Microeconomics
EDPE 4056: Applied Microeconomics Program in Economics and Education
Teachers College, Columbia University Prof. Francisco Rivera-Batiz
Problem Set 1
Please answer all of the following questions. Explain your answers clearly, showing how the results are obtained.
1. Assume that the market for wheat is perfectly competitive. Suppose the demand curve for wheat is given by:
QD = 200 – 2P
where QD is the quantity demanded, in bushels, and P is the price, in dollars per bushel. Suppose that the supply curve is given by:
QS = P – 10,
for values of P greater than or equal to 10, where QS is the quantity supplied, and QS = 0 when P < 0.
(1) Find the equilibrium price and quantity of wheat. Draw them in a clearly marked diagram.
(2) Suppose that unfavorable weather conditions shift the supply curve to the left, by 5 bushes of wheat at each price. Again find the equilibrium price and quantity, and draw the new equilibrium on the diagram you constructed for part (1).
(3) Going back to the demand and supply curves in part (1), assume now that a liberal government in the country decides the price of wheat is too expensive and decides to fix the price of wheat at P = 50 dollars per bushel. No one can sell or buy wheat except at this fixed price. What impact will this have on the market? How much wheat will be sold? How much will be demanded by consumers? Is this a good policy? Why?
Posted Date: 2/1/2012 2:16:27 PM | Location : United States
Ask an Expert
Applied Microeconomics, Economics, Assignment Help, Ask Question on Applied Microeconomics, Economics, Get Answer, Expert's Help, Applied Microeconomics, Economics Discussions
Write discussion on Applied Microeconomics, Economics
Your posts are moderated
Write your message here..
find the equilibrium quantity and demand curve, Consider a non-renewable r...
Consider a non-renewable resource. There are two periods, now and later. The demand curve in each period (t = 1, 2) is Qt = 10 - Pt. The stock of the resource is 10 units. Extracti
What is the difference between economics and business, What is the differen...
What is the difference between economics and business? Economics is the study of how we, the people, engage ourselves in production, distribution and consumption of goods and
AREC 1, Equation (1) gives a hypothetical demand curve for hybrid vehicles ...
Equation (1) gives a hypothetical demand curve for hybrid vehicles in the United States during the year 2000, where Q is the quantity demanded and P is the price. Equation (2) giv
Determine the optimal price, The largest public utility company in New Sout...
The largest public utility company in New South Wales (NSW) is the sole provider of electricity across all regions in the state. The monthly demand for electricity in NSW is given
Labour economics, Much of the supply-side, fiscally conservative economic p...
Much of the supply-side, fiscally conservative economic policies of Margaret Thatcher, Ronald Reagan, and even Mike Harris in Ontario were predicated on the belief that high income
Explicit costs are accounting costs, An economist's view of costs contains ...
An economist's view of costs contains both explicit and implicit costs. Explicit costs are accounting costs, and implicit costs are the opportunity costs of an allocation of resou
Homework, Do not submit more than 1 file in the Canvas submission link. A f...
Do not submit more than 1 file in the Canvas submission link. A few years ago peanut farmers in India experienced a super-bumper crop due to favorable weather conditions. Initially
Theory of production a\nd cost, explain engineering cost
explain engineering cost
Oxidation stete, write name and symbol of element from s-block that has zer...
write name and symbol of element from s-block that has zero oxidation state?
Accounting Assignment Help
Economics Assignment Help
Finance Assignment Help
Statistics Assignment Help
Physics Assignment Help
Chemistry Assignment Help
Math Assignment Help
Biology Assignment Help
English Assignment Help
Management Assignment Help
Engineering Assignment Help
Programming Assignment Help
Computer Science Assignment Help
Why Us ?
~24x7 hrs Support
~Quality of Work
~Time on Delivery
~Privacy of Work
Human Resource Management
Literature Review Writing Help
Terms & Conditions
Copyright by ExpertsMind IT Educational Pvt. Ltd.