hwk6sec5

hwk6sec5 - Answer Key for Experiment 6. Blue cells have...

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Answer Key for Experiment 6. Blue cel s have instructions for you to fol ow. Enter data in the yel ow cel s. Keep going until you hit the finish line at the end of this sheet. Enter Section Number in E7 5 Enter pol ution cost in E9 0.43 Enter # of permits in E11 11 Copy rows of Table 6.2 (No header row) and paste into B17. Sel er Cost 28 4 20 3 23 4 25 4 18 4 30 4 13 7 35 4 8 3 40 8 Copy and paste rows of Table 6.3 (no header row) into A27. Session 1 Trans Price Sel er Cost Buyer Value Sel er Prof Buyer Prof. 1 22 18 25 2 25 23 40 3 20 8 40 4 24 23 40 5 22 18 35 6 20 8 40 7 23 13 35 8 20 13 35 9 20 13 40 10 20 13 40 11 18 13 25 12 15 8 30 13 16 13 20 14 26 23 40 15 25 23 40 16 23 18 30 17 20 13 35 18 24 18 30 Copy the rows in Table 6.4 (no header row) and paste into A57. Session 2 Trans Price Sel er Cost Buyer Val. Pol. Tax Sel er Prof Buyer Prof. 1 35 13 40 2 33 8 40 3 32 8 35 4 34 13 40 5 39 18 40 6 34 13 35 7 35 13 40 8 35 13 40 9 32 8 40 10 34 13 35 11 34 13 40 Copy the rows in Table 6.5 (no header row) and paste into A88. Session 3- Last Round Trans Price Sel er Cost Buyer Val. Permit Price Sel er Prof. Buyer Prof. 1 25 13 30 11 2 32 18 40 7 3 33 13 40 11 4 30 8 40 12 5 27 13 40 12 6 25 13 40 10 7 33 18 40 13 8 29 28 30 0 9 32 18 35 11 10 29 8 35 7 11 34 23 35 10 Go to Figure 6.5 on the homework page and a dot to the intersection of the green demand curve and the red supply curve. Move "CE1" next to this dot. Now move a dot to the intersection of the green demand curve and the blue supply curve. Move the label "CE2" next to this dot. Session 1 For Session 1, the equilibrium price can be $23, $25, or any price in the range of $23-$25. The case you have depends on how many buyers with buyer value of $25 or more and sel er with sel ers cost of $23 or less. Here are the numbers for you: Buyers with BV of $25 or more: 20 Sel ers with SC of $23 or less: 18 Case 1: If the buyers with BV of $25 or more exceeds the sel ers with cost of $23 or less, price is $25 and and quantity is the number of sel ers with sel er cost of 23 or more Case 2: If the buyers with BV of $25 or more is less than the sel ers with cost of $23 or less, price is $23 and quantity is the number of buyers with buyer value of $25 or more. Case 3: If the buyers with BV of $25 or more equals the sel ers with cost of $23 or less, price could be anywhere in the range between $23 and $25 and quantity wil equal the number of buyers with buyer value of $25 or more, which equals the number of sel ers with sel er cost of $23 or less. In this case, I use the price of $24 for the calculations.
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hwk6sec5 - Answer Key for Experiment 6. Blue cells have...

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