prac4ans

prac4ans - 1 If trade selection in a good of sellers is...

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1. If trade in a good is prohibited and police arrest and fine a random selection of sellers of that good, the equilibrium price and quantity of the good will fall. Answer: False ,t;f\~--> ""'/ '5"~ '{J .tl"'\.l. .~
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2. If trade in a good is prohibited and police arrest and fine a random selection of buyers of that good, the equilibrium price and quantity of the good will fall. Answer: True 7~1J-1IL'tJ ..a., )""Ld.Alf. .d.tJ")1.-"1 4..e. ..,tt. .c-. .t2o,'t; ~ ~..6U~'()2Ll. . ~U--t::. .~~/ 4ALtf',f ~.e > AJ.-wU4t,{ .c<. .U1/lJ~ d.p--t#)l~ ~ 4~h.-(llY\. . ,.(,. ..e.,~,--tU-: Jt 1~-1t,-l1f -.S" J{)¥- !{) .{a¥ .. ~VY\-l,l;; ?~.l ~ tljt. .ll.,; dib{.JZ~. .4.e. .. ri?<XJ1~ 1.f). .-'Z. .l.a_- tL-1'-A ~). .a~. .1'{. .JZ:~ c~. ., n ,
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3. Soberup, Nevada has 10 heavy drinkers who are willing to pay as much as $5 for a beer each day. It also has 20 social drinkers who are only willing to pay as much as $2 for a beer each day. Currently, Soberup has 20 beer distributors, each of whom can supply as much as 2 beers a day at a cost of $0.50 per beer. What is the competitive equilibrium price of beer in Soberup? a. $0.50 b. $1.00 c. $1.50 d. $2.00 Answer: a }i. ~ /)Jl.L, .:v~. .> ~(a,'11"~ "'cUJ1ft4 I II /~-e.v 1- 5 JJ5 '" a cF: --- JJD,S 1..0 J.- c) :3 c) .{;~. .:;z~ ", , ,""" ,
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a. $45
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This note was uploaded on 12/25/2011 for the course ECON 1 taught by Professor Bergstrom during the Fall '07 term at UCSB.

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prac4ans - 1 If trade selection in a good of sellers is...

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