Assign3 - James E. Pesando Economics 100 Assignment #3...

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James E. Pesando Economics 100 Assignment #3 Demand, Supply, Market Equilibrium, and Elasticity 1. In London, during World War II, the weekly demand and supply curves for a carton of eggs are as follows: Price Quantity Demanded Quantity Supplied 4 10,000 1,000 6 8,000 2,000 8 6,000 3,000 10 4,000 4,000 12 2,000 5,000 (a) What is the equilibrium price and quantity of a carton of eggs? (b) To protect consumers, the government imposes a price ceiling of $6 on each carton of eggs. What is the new quantity demanded? The new quantity supplied? Is there a surplus or a shortage of eggs? Illustrate your answer with a diagram. (c) If those consumers who were able to buy eggs at the price ceiling of $6 per carton, were to resell the eggs in an illegal or “black market”, what price would they obtain? Show this price in your previous diagram. 2. The following are the elasticities for Toyota Camry: Price Elasticity of demand = 2 Income Elasticity of demand = 1.5
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Assign3 - James E. Pesando Economics 100 Assignment #3...

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