Need help with the following questions

1.Sketch a graph of the market for peanut butter, labeling the supply and demand curves, both axes, and the equilibrium price and equilibrium quantity.Now, a per-unit tax is imposed on sellers in this market. SHOW and describe what happens in this market. Draw and label any curve shifting and any change in the equilibrium price or equilibrium quantity. What is the new price that buyers pay for peanut butter? What is the price that sellers get to keep (after they pay the per-unit tax to the government)?

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CHAPTER 7

1. Sketch a supply and demand model, labeling both curves, both axes, and the equilibrium price and equilibrium quantity. Using this graph, SHOW consumer surplus and producer surplus. Provide intuitive explanations for why those two areas represent consumer and producer surplus.

2. Define the terms below. Where appropriate, use the expressions listed here in your definitions: price, marginal benefit, and marginal cost.

(i) consumer surplus

(ii) producer surplus

(iii) economic surplus

(iv) Rational rule

(v) efficiency

3. Define market failure and give two examples. Explain why these two are considered examples of market failures.

CHAPTER 10

1. On the concept of externality, answer the following questions. There is no need to draw any graphs for these questions.

a. Explain the concept of externality as it relates to the demand for a product. If the externality is positive, what would this imply about the private versus the social demand curve (social marginal benefit curve).

b. Explain the concept of externality as it relates to the supply of a product. If the externality is negative, what would this imply about the private versus the social supply curve (marginal social cost curve).

2. Define/describe the following concepts.

a. Coase theorem

b. free rider problem

c. public good

d. nonrival good

e. Tragedy of the Commons

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PART TWO: Week 5 - Chapters 8 and 9

CHAPTER 8

1. Suppose David and Albert get married and move into a new home. David can cook a meal in 2 hours and he can mow the lawn in 4 hours. Albert can cook a meal in 2 hours and it takes him 3 hours to mow the lawn. If they decide to specialize according to their comparative advantages, which one should cook the meals and which ones should mow the lawn?Answer this question the steps listed below.

(a) The opportunity cost for David cooking a meal is _________ mowed lawns.

(b) The opportunity cost for David mowing the lawn is ______ cooked meals.

(c ) The opportunity cost for Albert cooking a meail is ________ mowed lawns.

(d) The opportunity cost for Albert mowing the lawn is _________ cooked meals.

(e ) Who has the comparative advantage in cooking meals? ______________

(f) Who has the comparative advantage in mowing the lawn? ______________

CHAPTER 9 (10 points total)

1. Suppose that in the world market for computers, the world price equals $500 per computer and the world quantity is 120 million. Note that the domestic price for computers equals $300 and the domestic equilibrium quantity is 10 million.Now the domestic country opens up to international trade.

(a) Will the domestic country choose to import or export computers? Explain.

(b) DRAW the domestic country's supply and demand curve and label the graph completely.

(c ) In this graph, label consumer surplus and producer surplus.

(d) In this graph, draw in the world price line. Label the new quantity produced domestically, the new quantity purchased domestically, and label the quantity that will be imported or exported.[Note: You do not need exact numbers for the quantities.]

(e ) Show the NEW consumer surplus and the NEW producer surplus.

(f) Describe the change in consumer surplus, the change in producer surplus, and the new total surplus. Use these answers to explain gains from trade.

2. This question is about the consequence of trade.

(a) Explain what economists mean when they say that there are winners and losers from trade. Who are the winners? Who are the losers?

(b) What are three arguments in favor of limiting trade? Explain each one.

(c ) What is the impact of trade on inequality?