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terrichichester-BU204-homework-unit-3

# terrichichester-BU204-homework-unit-3 - /100 Name HOMEWORK...

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Name: /100 HOMEWORK - UNIT 3 SUPPLY AND DEMAND & THE MARKET STRIKES BACK Chapter 3: Problems 5 and 14 on pages 79-82 Chapter 4: Problems 5 and 7 on pages 105-108 Chapter 3 / SUPPLY and DEMAND /24 5. Suppose that the supply schedule of Maine lobsters is as follows: Suppose that Maine lobsters can be sold only in the United States. The U.S. demand schedule for Maine lobsters is as follows: a. Draw the demand curve and the supply curve for Maine lobsters (8pts) - See ‘How to do the Graphs’ in the Doc Sharing for graphing methods - (http://nces.ed.gov/nceskids/createagraph/ is probably the most appropriate for this problem)

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What is the equilibrium price and the equilibrium quantity of lobsters? (2pts) The Equilibrium price is \$15 and the equilibrium quantity of lobsters is 600. Now suppose that Maine lobsters can be sold in France. The French demand schedule for Maine lobsters is as follows: b. What is the demand schedule for Maine lobsters now that French consumers can also buy them? Price of lobster Quantity of lobsters (U.S. + French) \$25 200+100=300 20 400+300=700 15 600+500=1,100 10 800+700=1,400 5 1,000+900=1,900
Draw a supply and demand diagram that illustrates the new equilibrium price and quantity of lobsters. (8pts) What will happen to the price at which fishermen can sell lobster? (2pts) The fishermen will be able to sell 300 more lobsters at the higher equilibrium price then they could have before. What will happen to the price paid by U.S. consumers? (2pts) The price will rise as the new equilibrium price rose from \$15 to \$20 What will happen to the quantity consumed by U.S. consumers? (2pts) I think the quantity consumed by the U.S. consumers will decrease because of the higher price. /24

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14. The small town of Middling experiences a sudden doubling of the birth rate. After three years, the birth rate returns to normal. Use a diagram (one diagram per situation for a total of three diagrams) to illustrate the effect of these events on the following.
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terrichichester-BU204-homework-unit-3 - /100 Name HOMEWORK...

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