Solution Exercise 1 - 1 ‘mwn 1 n‘mw'JELNDUST’EW 51...

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Unformatted text preview: 1 ‘mwn - 1 n‘mw 'JELNDUST’EW 51.: fl; CURVE-I :1:er 5w mama amps: {DU puff-”FT? ' SUQPLfif} PRICE PETE —.n_| mIE‘VJfi mmn ”W” $11.27 X mm“; EH1 ENHRE Imu mam I‘I‘I‘J'IE‘I'I 1113151231 - l 5‘1'111 MARGIHH a GMT :29? PRnQUCéE-‘PS we! ‘71:? math-4m mw’wn . . @umu‘r'm mF‘ nfi‘mn mbszn omwmmn M H 593T: a-L 53¢) 37 X'mET’Dfi - 1'1“”ti WK" “1""? - raw-111m? um .15.": a mm 1113: " 5914:1735 73“.? .1‘73 3:311 111:: MHRKeT EQUiLIBRIUM .7122: Swan ~my QU HNTITY fiGGkEGATE Supgy PRFCE PER. DEMAmE mmn UNIT 111?: 11373an 111an “W 111?: nwpumn J'I'I".'l'|'.'~i"l'l I'I'IFEIEFTI - l 1'2":J.'u1 - 111w. PHE‘ 1"1 - OPTrMfiL SQEIHL PRfichmN' LEVELS mun-N7 nfi‘mvmmx 113” nm 11:37.1 ”new Imp-Han :17:wa nvawn nwnwn v 1 5*an _ 1mm pnr- 1"1 _ C0MP£T0TmE EQU‘ILIERIQM FWD dpmeL OUTPUT 157310912: 113351 vnnnn 5.7020 mm; NICS.3.;,;ML P 1 MCPRNA'I’E 20 ....................... 10 ..... 9 TR: 90mm Q)“: £53000 Qixu'?‘ ’73 I! If x; $36 :90}? D 10‘???er {£35.93 .. :1. 1 . I . hi fi ..3;_~?.-<au. . : : Md-ar.-{'=.,I 0‘? "i r' I 900 1,000 X ~ _.-_;. " 0' a hill. -. I'IT'ZI‘IE‘I'I INSIDER - l L2"1‘11'1 - TITM P113“ "'I"'i‘ - THE Damage To FffiHERMEM{UNflr‘—ER SMIHLLY OPWMRL OUTPUT Comnmofigg (mar-1‘7 nv‘mfimam mm raw-13w: was) raw-:5 pun MCSQHH L PX MC Pain ATE 960 1,600 X 6 m‘mrn nwgmn ~ 1 ‘mnn a 1111:»: pnx" 1*‘1 w v. in! our: uieiuuuwurgmoie. fit“; WC‘EKL “in j WE‘RE 3-; g‘ Price Total Queue}! E) L“ 3 H 1”" Ti"— .5 $1fl D $8 2 $5 4 $4 1e $2 15 $1) 22 {ii} ten unit-r {e} See the following table. Price anti $16 I} $13 {3 + 5} 2 $1fl{6 + e] 4 $r {4 + 3] e 134:2 + 2] 8 $1 [i] + 1] 1E: $0 12 l. r {in eight uniis {a} $29. Add Ted. Ned, and Fred’s price together for the second unit of the good. {in} See the following diagram. 15 413 an E21} 11} - ' {c} three units id] See the preceding diagram. ie} No one wiii be really happy. Each consumer would prefer to have more of the good produced, given its current price and their revealed preferences. ...
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