{[ promptMessage ]}

Bookmark it

{[ promptMessage ]}

# HW3 - Econ 1 Tang Fall Quarter 2007 Homework 3 Chapters 5 6...

This preview shows pages 1–2. Sign up to view the full content.

Econ 1: Tang Fall Quarter 2007 Homework 3: Chapters 5 & 6 Due Wednesday November 7, at the beginning of class. Please write your name, PID, and section number/TA name on your homework. 1. The table gives the demand and supply schedules for spring water. Price (dollars per bottle) Quantity demanded (bottles per day) Quantity supplied (bottles per day) 0 80 0 0.50 70 10 1.00 60 20 1.50 50 30 2.00 40 40 2.50 30 50 3.00 20 60 3.50 10 70 4.00 0 80 a. What is the maximum price that consumers are willing to pay for the 30th bottle? b. What is the minimum price that producers are willing to accept for the 30th bottle? c. Are 30 bottles a day less than or greater than the efficient quantity? d. What is the consumer surplus if the efficient quantity of spring water is produced? e. What is the producer surplus if the efficient quantity is of spring water is produced? f. What is the deadweight loss if 30 bottles are produced? 2. Suppose that the supply curve for wheat is given by Q S =10P-10 and suppose that the demand curve for wheat is given by Q D =200-20P . a. Find the equilibrium price and quantity of wheat. b. Sketch a picture of the supply curve and the demand curve. Be sure to label i) both axes, ii) the y-intercept both curves, iii) the slope of both curves, and iv) the equilibrium price and quantity.

This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

### What students are saying

• As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

Kiran Temple University Fox School of Business ‘17, Course Hero Intern

• I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

Dana University of Pennsylvania ‘17, Course Hero Intern

• The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

Jill Tulane University ‘16, Course Hero Intern