Ali Saher #104
SA24534
Lab Notes
Table 8.2
Buyer Value # of Buyers
24
13
18
13
12
13
8
14
A restaurants total costs will be $40 if it sells 4 meals, $35 if it sells 3 meals, $30 if it
sells 2 meals, and $25 if it sells no meals.
Table 8.3
Restaurants Sales-Session 1, Round 1
Restaurant
Owner's ID
Prices Paid By Restaurant Customers
416
15
10
15
463
17
10
7
454
14
14
11
435
16
16
16
467
15
15
15
464
15
15
15
460
15
15
15
Total Cost
7
23
7
16
20
15
7
Total Revenue
47
57
46
64
65
60
52
Profit
40
40
40
40
40
40
40
7
17
6
24
25
20
12
In the 1st round of session 1, all of the
firms were making a profit, and nobody
was making a lost.
Table 8.4
Restaurants Sales- Session 1, Last Round
Restaurant
Owner's ID
Prices Paid By Restaurant Customers
417
10
15
7
???
23
7
11
416
14
11
23
464
15
15
11
467
15
16
20
435
15
15
15
454
15
11
17
466
20
15
15
8
20
7
16
15
10
18
Total Revenue
40
41
68
48
67
60
53
68
Saher Ali #104
SA24534
Total Cost
Profit
40
35
40
40
40
40
40
40
0
6
28
8
27
20
13
28
In the last round of Session 1, all the firms
were making a profit and none were
making a loss.
Session 2
1st Round
Restaurant
Owner's ID
Prices Paid By Restaurant Customers
416
20
16
23
454
17
17
15
435
17
17
17
466
20
11
16
417
15
15
11
???
17
17
20
Total Cost
14
14
12
15
15
20
Total Revenue
73
63
63
62
56
74
Profit
43
43
43
43
43
43
30
20
20
19
13
31
In the first round of session 2, all firms
were making a profit and nobody was
making a loss.
Session 2
Last Round
Restaurant
Owner's ID
Prices Paid By Restaurant Customers
417
15
15
12
467
22
22
17
460
14
14
11
416
20
11
11
???
15
15
11
435
11
17
17
454
20
16
17
455
22
20
12
Total Costs
8
14
11
11
24
12
11
Total the Revenue
42
69
53
53
52
69
65
65
Profit
38
43
43
43
43
43
43
4
26
10
10
9
26
22
In last round of Session 2, all firms
made a profit and nobody made a loss.
Saher Ali #104
SA24534
Homework
Problem 8.1
part a) In the first round of Session 1, 7 restaurants were opened, and in the last
round of Session 1, 8 restaurants were opened.
Table 8.7
Competitve Equilibrium Predictions, Session 1
# of Meals
Restaurants'
Mean Price
Sold
Total Profits
Short-Run
Competitive
Eq. in 1st
Round
Short- Run
CE in Last
Round
Long-Run CE
Problem 8.3
Table 8.8
Session 1,
1st Round
Session 1,
Last round
12
28
56
12
12
32
36
64
72
Experimental Outcomes Session 1
# of Meals
Restaurants
Mean Price
Sold
Total Profits
14
28
111
14.4
31
130
part b) The first round was closer to the long run than the last round.
Problem 8.4
part a) In the first round of Session 2, there were 5 restaurants and in the last round
there were 8 restaurants open.
part b) With the $3 sales tax, restaurants have variable costs of $8. Each restaurant
will want to supply 0 meals if price is below $8 and will supply 24 if above $8.
Problem 8.5
Table 8.9
CE Session 2
# of Meals
Sold
Mean Price
Short Run CE
in 1st Round
Short Run in
Last Round
Long Run CE
Restaurants
Total Profits
18
24
120
12
18
32
24
-32
120
part b) In the long run, introduction of sales tax will cause the price of meals to rise by
Saher Ali #104
SA24534
Problem 8.6
Table 8.10
Session 2,
1st Round
Session 2,
Last Round
Exp. Outcomes Session 2
Number
Mean Price
Meals Sold
Restaurants
Total Profits
16.3
24
79
15.1
31
60
part b) No the first round was closer to the long run CE.