252HomeworkIII_KEY

# 252HomeworkIII_KEY - Homework III ANSWER KEY Principles of...

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2 (g) From this information, derive Kate’s supply schedule. (A table that gives quantity supplied for a given range of prices, see page 144 for an example.) (h) Graph Kate’s supply curve for sushi (use a “step” diagram). (i) If the price of sushi is \$7 per piece, how many pieces does Kate produce? (j) How much producer surplus does Kate get from these sales (price \$7)? (k) Show Kate’s producer surplus on your diagram in part (h) (price \$7). (l) If the price rises to \$9 per piece, what is Kate’s new quantity supplied? How does Kate’s producer surplus change (give specific number (value) for the change in producer surplus)? Show these changes on the diagram from (h) and (k). Consider a market in which John is the buyer of sushi and Kate is the seller of sushi. (m) Draw a market diagram with John’s Demand curve and Kate’s Supply curve. (n) Use Kate’s supply schedule and John’s demand schedule to find the quantity supplied and quantity demanded at prices of \$5, \$7, \$9. Which of these prices brings the market to equilibrium?
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## 252HomeworkIII_KEY - Homework III ANSWER KEY Principles of...

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