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econlab023

# econlab023 - The table shows the demand and supply...

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Unformatted text preview: The table shows the demand and supply schedules for rice. Priee lllilluantity Illlllua ntity What are the price, the marginal cost of prothlcing rice, and {dollars demanded supplied the quantity pro-chiceci if the government sets a quota of per box} {boxes per week} 2,000 b03135 a Wﬂﬂk? 1_m} 3,500: 50,0 1.10 3 250 1 000 A t 2 d ' | | . ’ ’ :-:-:- nswer o emma paces 1-20 3:000 1:590 With a quota of 2,1110 boxes a week, the price of a box of 1-30 2:750 1000 rice is \$ 1.60 , the marginal cost ofproclucing rice is \$ 1.3 a 1.40 2,500 2,500 box, and the quantity of rice produced. is 2000 boxes a 1-50 2:250 3:00“ © 1lll'lll'ell done! The table shows the demand anti supply schechtles for rice. Price quantity Quantity . . . . walla“ demanded supplied With a quota, the price 15 the mammmn amount that people per my {boxes per week} an“: wiﬂmg to Pay at the coma qualms- moo 3,530 so} That price comes from the demand curve. 1.10 3250 1,000 1.20 3,000 '1 ,500 So when the quota is 2,000 boxes a week, people are willing 1-30 2:750 2:300 to pay \$1.00 a box. 1.40 2,500 2,500 _ _ _ 1.50 2,250 3,000 The marginal cost ofprotiucmg rice comes ﬁlm the supply 1 E0 2 000 3 500 cunre . When the quantity produced is 2,000 boxes a week, the marginal cost is \$1.30 a box. And the quantity producedis determinedbythequota, which is 2,000 boxes a week. ...
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