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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 ,
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"~ 1'\./( o 1"\~( &~~ "'cUJ1ft4 I II /~-e.v 1- 5 JJ5 '" a cF: --- JJD,S 1..0 J.- c) :3 c) .{;~..:;z~ ", , ,""" ,

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