Graph the consumption function both before and after the shock on one graph and

# Graph the consumption function both before and after

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1. Graph the consumption function both before and after the shock on one graph, and also plot equilibrium consumption and output values both before and after the shock. 2.Graph the AE equation both before and after the shock on one graph, and also plot equilibrium output Y both before and after the shock.  that the costs of production are zero. Your goal, your objective, is to maximize profits which is the same as maximizing total revenue given the zero cost assumption.The profit (revenue) maximizing price is cents. (don’t use a decimal point in this answer!)Table for Individual Question FeedbackPoints Earned: 3.0/3.0 Correct Answer(s):3013. The profit maximizing quantity (in cups) of lemonade is . Table for Individual Question FeedbackPoints Earned: 3.0/3.0 Correct Answer(s):3014. The corresponding maximum profit is \$Table for Individual Question FeedbackPoints Earned: 3.0/3.0 Correct Answer(s):9, 9.0, 9.0015. Suppose that there was a demand shock so that the new estimated demand function for lemonade in your neighborhood changes to:Q = 100 - 100 PA demand curve would change like this due to:A) a tax increaseB) a tax decreaseTable for Individual Question FeedbackPoints Earned: 3.0/3.0 Correct Answer(s):B16. The new profit (revenue) maximizing price is cents. (don’t use a decimal point in this answer!)Table for Individual Question FeedbackPoints Earned: 3.0/3.0 Correct Answer(s):5017. The new profit maximizing quantity (in cups) of lemonade is . Table for Individual Question FeedbackPoints Earned: 3.0/3.0 Correct Answer(s):5018. The new corresponding maximum profit is \$Table for Individual Question FeedbackPoints Earned: 3.0/3.0 Correct Answer(s):25, 25.0, 25.0019.  #### You've reached the end of your free preview.

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• Spring '14
• WALLACE,NEIL
• Supply And Demand, Correct Answer, Individual Question
• • •  