{[ promptMessage ]}

Bookmark it

{[ promptMessage ]}

Discussion section problem set 3 econ 200

Discussion section problem set 3 econ 200 - Problem Set 3...

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

View Full Document Right Arrow Icon
Problem Set 3 Discussion Sections Economics 200 We will review problems 1-3 in discussion sections beginning Wednesday, October 14. We will review problems 4-6 in discussion sections beginning Wednesday, October 21. 1. Draw a supply and demand diagram of the market for Japanese cars in the United States. Suppose the U.S. government imposes a strict restriction on the quantity of Japanese cars sold in the United States. This restriction would state the maximum number of Japanese cars that the government would allow to be supplied in the U.S. market. Show what happens in this market if the quantity restriction is less than the equilibrium quantity. What will happen if the quantity restriction is greater than the equilibrium quantity? 2. Demand and supply in the yo-yo market are as follows: Price Demand Supply $1.00 1,000 0 $1.50 900 0 $2.00 800 0 $2.50 700 100 $3.00 600 200 $3.50 500 300 $4.00 400 400 $4.50 300 500 $5.00 200 600 (a) Find the initial equilibrium price and quantity. (b) Suppose the government imposes a new $1.00/unit tax on the producers of yo-yos. Find the new equilibrium price and quantity.
Image of page 1

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

View Full Document Right Arrow Icon
Image of page 2
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

What students are saying

  • Left Quote Icon

    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.

    Student Picture

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

  • Left Quote Icon

    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.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    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.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern