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# HW 4 Answers - Econ 100B Tang Homework 4 More Ch 9 and Ch...

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Econ 100B: Tang Winter Quarter 2009 Homework 4: More Ch. 9 and Ch 15.1, 15.4 Due Thursday February 19, at the beginning of class. Please write your name and PID on your homework. 1) Where h=hrs of service per week, assume the inverse demand curve for services of child actors is given by Pd=10-h/20 And the inverse supply curve for services of child actors is given by Ps=h/20 a. Assuming the market is competitive, sketch the supply and demand curves and indicate the equilibrium price and quantity. b. Calculate consumer (users of child actor services) and producer (child actors) surplus. c. Now assume the government has decided that child actors are spending too much time on set and not enough in school and decide to restrict child acting services to 80 hours a week. i) What is the hourly price consumers are willing to pay for this quantity? ii) What is the hourly price producers are willing to accept for this quantity? iii) Assuming the market price is the price consumers are willing to pay,

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