Kindly explain the following questions.
Use the willingness-to-pay information about the buyers (Ariel, Bridget, and Connie) and the willingness-to-accept information about the sellers (Daniel, Etienne, and Franklin) below to construct a "stepped" demand and supply diagram like this one from my notes on Unit #7. (You'll also have one question to answer below.) Willingness-To-Pay information Ariel Bridget Connie willingness-to-pay $5 $7 $9 for the 1 widget willingness-to-pay $4 $6 $7 for the 2" widget willingness-to-pay $3 $4 $5 for the 3 widget willingness-to-pay $2 $3 $4 for the 4 widget willingness-to-pay $1 $2 $3 for the 5" widget Willingness-To-Accept information A Daniel Etienne Franklin willingness-to-Suppose the demand and supply for milk in the European Union (EU) is given by p = 124 - 0.7Q" and p = 7 + 0.2Q5, where the quantity is in the millions of liters and the price is in cents per liter, Assume that the EU does not import or export milk. (Note: 100 cents = 1 euro.) (a) Find the market equilibrium quantity, Q*, and equilibrium price, p*. millions of liters cents per liter (b) Find the consumer and producer surplus at the market equilibrium. (Round your answers to two decimal places.) consumer surplus million euros producer surplus million euros (c) The European farmers successfully lobby for a price floor of p = 40 cents per liter. What will be the new quantity sold in the market, Q? Q =[ millions of liters (d) Find the new consumer and producer surplus after the price floor. (Round your answers to two decimal places.) consumer surplus million euros producer surplus million euros (e) What is the deadweight loss from the price floor? (Round your answer to two decimal places.) million euros (f) If the EU authorities were to buy the surplus milk from farmers at the price floor of 40 cents per liter, how much would they spend in millions of euros? (Round your answer to two decimal places.) million euros4. (30 points) Consider the following game. There are ten dollars to divide. Two players are each required to simultaneously name an integer between 0 and 10. The player who names the higher number gets to keep the money. If they name the same number, the money is equally shared between them. (a) Describe the set of players N, the set of strategies { Silien, and the payoff function QuitiEN. (b) Are there strategies that are strictly dominated? Demonstrate your reasoning. What are the resulting strategies after iterated elimination of strictly dominated strategies? (c) Find the best responses (correspondence) for each player. That is, find the strategies that maximize a player's payoff given what the other player does. (d) Find the Nash equilibria of the game. (e) Suppose now the game is changed. Whenever there is a tie, each player receives nothing. Answer the same questions in parts (b) and (c). Find the pure-strategy Nash equilibria of the game.4) Imagine that you are involved in a car accident with a FedEx truck and your injuries are $200,000 and the injuries to the FedEx driver are only $20,000. You are 80% at fault and the FedEx driver is 20% at fault. If this accident happened in a contributory negligent state, you would be entitled to: a. your monetary recovery would be $24,000. b. your monetary recovery would be $16,000. c. your monetary recovery would be $40,000. d. your monetary recovery would be $56,000. c. your monetary recovery would be $0. 5) Imagine that you are involved in a car accident with a FedEx truck and your injuries are $200,000 and the injuries to thee FedEx driver are only $20,000. You are 80% at fault and the FedEx driver is 20% at fault. If this accident happened in a pure comparative negligent state, such as California, or Washington, you would be entitled to: your monetary recovery would be $24,000. your monetary recovery would be $16,000. your monetary recovery would be $40,000. your monetary recovery would be $56,000. your monetary recovery would be $0. 6) Imagine that you are involved in a car accident with a FedEx truck and your injuries are $200,000 and the injuries to thee FedEx driver are only $20,000. You are 80% at fault and the FedEx driver is 20% at fault. If this accident happened here in W. Lafayette, Indiana, which follows the comparative negligence 50% rule. What would you be entitled to: your monetary recovery would be $24,000. your monetary recovery would be $16,000. C. your monetary recovery would be $40,000. your monetary recovery would be $56,000. your monetary recovery would be $0. 7) Imagine that you are the very young president of Denning Potteries, Inc., having succeeded your father, who retired unexpectedly due to illness. Your feeling of insecurity (relating to youth, inexperience, and whispers of nepotism) has just been greatly increased by your election to the presidency of the Association of Pottery Manufacturers at their annual meeting. One probable determinant in the election was your statement during the campaigning that you wished to bring order to the chaotic problems that have plagued the industry. Each member characteristically makes a broad line of products ranging from fine china to decorative pieces to earthenware for the gardening industry. The allocation of fixed costs, the determination of overhead, and the isolation of variable expenses have always been problems. Consequently, prices have seldom been perceived as closely related to real costs but have fluctuated with competitive forces in a marketplace with literally hundreds of competitors. After a hastily called meeting with your executive committee, a plan evolves. You will propose that a survey be drafted that will be distributed to all member of the association. The survey will ask for specified information from each respondent on the pricing methods employed with their respective organizations. The results will then be used by a specifically formed accounting committee to devise a standardized method of computing costs, markups, and prices for the industry. When completed, it will be provided to the members, which are all in the same industry, for their own use, if they see fit, on a
