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The demand and supply curves for the U.S. market for coffee are given by D(p)= 600 – 2p and S(p)=300 + 4p.
1. Suppose engineers invent a cheap, organic pesticide that lowers costs to coffee producers. Assume this cost-saving measure converts to $45 USD. Write a function for a new supply curve for coffee in the U.S. market.
2. Solve algebraically to find the new equilibrium price and quantity. Again be sure to show all work; label and box your answer.
Imagine a waste processing plant that is causing air pollution (measured in tons per year), and has marginal abatement costs given by MAC1 = 100 – 0.005E1. What level of emissions will the waste plant choose?
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Draw a graph with “hours of typing” on the horizontal axis and “hours of filing” on the vertical. Do your indifference curves slope upward or downward? Why? Suppose you currently type for 3 hours a day and file for 5, but you’d be just as happy typin..
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how will my answers change if supply was perfectly inelastic. If supply was perfectly elastic. If demand was perfectly inelastic. If demand was perfectly elastic.
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Suppose that a small town has seven burger shops whose respective shares of the local hamburger market are (as percentages of all hamburgers sold): 25%, 24%, 20%, 12%, 9%, 6%, and 4%. What is the Herfindahl index for the hamburger industry in this to..
Suppose c = wL + rK and q = L 1/3K 1/4 and perfect competition in all markets. Find the demand for labor and capital and the supply of q. If p = 8, w = 1 and r = 2, find the quantity supplied and the profits.
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