Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Please help C ezto.mheducation.com/ext/map/index.html?_con=con&external_browser=0&laun HW - Market Equil. and Policy The market for bicycles in rural Indiana is described in the table below. Suppose that

Please help

image text in transcribed
C ezto.mheducation.com/ext/map/index.html?_con=con&external_browser=0&laun HW - Market Equil. and Policy The market for bicycles in rural Indiana is described in the table below. Suppose that public spending improves bicycle lanes in rural 11 areas. As a result, the demand for bicycles shifts to the right by 100 bicycles at every price. Market for Bicycles Initial quantity of Quantity of New Quantity 0.1 Price Bicycles Bicycles of Bicycles point (dollars Demanded Supplied Demanded $200 1, 000 650 1- 100 225 950 700 1 050 250 900 800 1 000 print 275 850 850 950 300 800 900 900 325 750 950 350 700 Market for Bicycles 460 350 300 Price (dollars per bicycle) 250 200 150 50 700 800 900 1000 1100 1200 Quantity Instructions: Enter your answers as a whole number. a. What are the initial equilibrium price and quantity in the bicycle market? P-S -bicycles b. What are the new equilibrium price and quantity in the market? P=$ Q - .bicycles quantity of bicycles c. Because of the increased number of bicycle lanes in rural Indiana, the equilibrium price of bicycles and the equilibrium O increases by $25; increases by 50 bicycles O increases by $25; decreases by 50 bicycles decreases by $25; increases by 50 bicycles decreases by $25; decreases by 50 bicycles

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Environmental And Natural Resource Economics

Authors: Thomas H Tietenberg, Lynne Lewis

10th Edition

1315523965, 9781315523965

More Books

Students also viewed these Economics questions