Unformatted text preview: Econ 100A - Worksheet #4 Equilibrium: Positive Analysis Intuitive Exercises 1 Exercise 1 In 1992, the Occupational Safety and Health Authority passed the Bloodborne Pathogens Standard (BBP), which regulates dental office procedures. This regulation is designed to minimize the transmission of infectious from patient to dental worker. The effect of this regulation was both to increase the cost of providing dental care and to ease the fear of going to the dentist at the risk of contracting and infectious disease. Answer the following questions and illustrate each answers by a graph. 1) According to you, what is the effect of this regulation on the demand for dental care curve? 2) What is the effect on the supply of dental care curve? 3) What is the likely effect on equilibrium price and quantity of dental care? Exercise 2 The currency used by the Confederate States of America from 1861 to 1865 has become a collector’s item. The quantity of this good is obviously fixed and therefore the supply is perfectly inelastic. However, as time passes, some of this old currencythis good is obviously fixed and therefore the supply is perfectly inelastic....
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This note was uploaded on 07/09/2010 for the course ECON 100A taught by Professor Woroch during the Fall '08 term at Berkeley.
- Fall '08