econlab024 - <:l<l Q'3(I'3'3 6(I D L3L 5.4 Chapter...

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Unformatted text preview: <:l<l Q ('3) (I? ('3) ('3) 6) (I?) @ D L3L' 5.4 Chapter Problem 9h ‘\ Extends: Snare: 0.53" Elf 1 pt Assignmntfimre: 88.3% {115? at 20- pis] marl-21] complete a The table shows the demand and supply schedules for rice. Priee IIIItuantity Illllluantity _ The market for rice is in equilibrimn. {dollars demanded supplied per box} {boxes per week} l H the government introduces a subsidy of $0.30 a box on 1.00 3,500. 500 I rice, what are the price, the marginal cost ofproducing rice, 1 ’10 3 250 ,1 000 l- "a [lit-ml i] d": I? ' a a and fl]: q pr at 1.20 3,000 1,500 L =-:-:- Answer to 2 decimal places. 1-30 2,750 2,090 '1 .-I'-l-0 2,500 2,500 i With a subsidy of$0.30 a box, the price ofa box ofrice is 1.50 2,250 3,000 $ 1.2 , the marginal cost ofproducing rice is $ 1.5 a box, 1.60 2,000 3’5““ © Fantastic! Initially the market for rice is in equih'brimn. Quantity Price lllluantity lIllua ntity supplied The equilibrimn price is $1.40 a box and 2,500 boxes :1 {dollars demanded supplied minus subsidy week are bought and sold. per box} {boxes per week} 1.00 3,500 500 2,000 The table shows the demarui and supply schedules for WWW- suWW-u 1;: 3-3:: 1-2:: 3:3: subsidy of$0.30 a box is placed on rice. ' ’ ’ ’ 1.30 2,750 2,000 3,500 The new price is $1.20 a box, which is where the quantity 1.40 I,“ 2,500 supplied minus the subsidy equals the quantity demanded, 150. 2,253 3,933 and the quantity produced is 3,000 boxes. 1 60 2 000 3 500 The marginal cost is folmd from the original supply schedule. The supply curve is the marginalcost crave, so when the quantity produced is 3,000 boxes, the marginal rust is 51.1 in ...
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