Problem Set 3: Elasticity Name: Select three of the demand schedules below. Use the first three digits of your student ID number to determine which demand schedules to use. Example 1: 0912407 = #0, #9, and #1. Example 2: 0906737 = #0, #9, and #0 (again). These are the buyers in your "market." Quantity demanded of orange juice per month by: Market Price/ #8 #9 Demand gallon #0 #1 #2 #4 #5 #6 #7 23 11 9 8 6 17 21 $6 13 15 19 23 24 25 26 27 21 20 19 18 $5 22 $4 30 30 30 30 30 30 30 30 30 30 $3 38 37 36 35 34 33 39 40 41 42 $2 46 44 42 40 38 36 48 50 52 64 $1 54 51 48 45 42 39 57 60 63 66 1. Calculate market demand for orange juice and enter the values in the column above. Select three of the supply schedules below. Use the last three digits of your student ID number determine which supply schedules to use. Example 1: 0901407 = #4, #0, and #7. Example 2: 0841737 = #7, #3, and #7 (again). These are the sellers in your "market." Price/ Quantity supplied of orange juice per month by: Market gallon #0 #1 #2 #3 #4 #5 #6 #7 #8 #9 Supply 50 48 58 40 42 44 42 52 54 38 $6 $5 40 39 44 35 36 37 38 41 42 34 30 30 30 $4 30 30 30 30 30 30 30 $3 20 21 26 25 24 23 22 19 18 26 $2 10 12 12 20 18 16 14 8 6 22 $1 0 15 12 9 6 0 18 Calculate market supply of orange juice and enter the values in the column above. Calculate the equilibrium price and quantity. P* Q* UT A W N Calculate total revenue when price is $1 and when price is $2 Calculate total revenue when price is $5 and when price is $6 6. Use the Total Revenue Test to estimate the price elasticity of demand between $1 and $2 $5 and $6 7. Use the midpoint formula to calculate the price elasticity of demand coefficient between $1 and $2 (Four decimal places, please!) 8. Use the midpoint formula to calculate the price elasticity of demand coefficient between $5 and $6 (Four decimal places, please!) 9. The government imposes a price ceiling of $2 in this market. Calculate the number of units that will be traded in this situation. Quantity traded 10. What will happen to the positions of the demand and supply curves in the presence of this price ceiling? Carefully explain why