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1. Consider the market for bananas at a local produce store. The manager has data on how much consumers will demand and how much his

1. Consider the market for bananas at a local produce store. The manager has data on how much consumers will demand and how much his distributors will supply at various prices. (I have answered it plz correct my answer and rectify ). What is the market clearing price and quantity? How did you arrive at that result?

The Market for Bananas

Price

Supply

Demand

50

100

35

45

90

40

40

80

45

35

70

40

30

60

55

25

50

50

20

40

55

15

30

60

10

20

75

5

10

80


2. Now consider the market for three kinds of chocolate at a candy store. The manager has data on how much consumers will demand and how much his distributors will supply for three different market segments: Premium, Generic, and Every Day.

What is the market clearing price and quantity for each segment? How did you arrive at that result?

Premium Chocolate

Price

Supply

Demand

2

300

5

1.75

100

10

1.5

80

20

1.25

70

50

1

30

100

0.75

0

200

0.5

0

20,000

0.25

0

40,000

Generic/Store Chocolate

Price

Supply

Demand

2

100

0

1.75

90

0

1.5

50

0

1.25

40

0

1

30

5

0.75

20

10

0.5

10

100

0.25

0

10,000

Every Day Chocolate

Price

Supply

Demand

2

200

0

1.75

70

0

1.5

30

0

1.25

20

0

1

10

0

0.75

0

100

0.5

0

1,000

0.25

0

20,000

3. A state government is issuing tax-free bonds to finance the building of a new bridge. The government will issue 10,000 bonds at an auction. The government will take the highest bid, the next highest, and so on until all the bonds are sold. Every winner pays the lowest price.

What is the market clearing price and quantity? How did you arrive at that result?

Bonds

Price

Supply

Demand

101

10,000

100

100.5

10,000

500

100

10,000

4,500

99.5

10,000

4,900

99

10,000

6,100

98.5

10,000

10,000

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Number 1 All things unchanged the demand of bananas is determined by how much customers are willing and able to pay at the price listed Based on the data when the bananas were priced at 5 customers de... blur-text-image

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