Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Refer to the tables below, which show, respectively, the willingness to pay and the willingness to accept of buyers and sellers of individual bags of

image text in transcribed
Refer to the tables below, which show, respectively, the willingness to pay and the willingness to accept of buyers and sellers of individual bags of oranges. For the following questions, assume that the equilibrium price and quantity depend on the following changes in supply and demand. Also assume that the only market participants are those listed by name in the two tables. In addition, assume that each seller is only able to sell one bag of oranges and each buyer is only able to buy one bag of oranges during the period represented by the data in the tables. Further, assume that the equilibrium price is known to all participants in the market. Consumers Producers Maximum Actual Price Minimum Actual Price Person Price Willing (Equilibrium Person Acceptable (Equilibrium To Pay Price) Price Price) Bob $13 $8 Carlos $3 $8 Barb 12 8 Courtney 4 8 Bill 11 8 Chuck 5 8 Bart 10 8 Cindy 6 8 Brent 9 8 Craig 7 8 Betty 8 8 8 8 es Chad Instructions: Enter your answers as a whole number. a. What is the equilibrium quantity for the data displayed in the two tables?bag(s) b. Assume that we are back to talking about bags of oranges (a private good), but the government has decided that tossed orange peels impose a negative externality on the public that must be rectified by imposing a $2-per-bag tax on sellers. What is the new equilibrium price? $ What is the new enililibrium allantity

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

The Economics Of The Sulphur Industry

Authors: Jared E Hazleton

1st Edition

1317353927, 9781317353928

More Books

Students also viewed these Economics questions

Question

2. To store it and

Answered: 1 week ago