Chapter 2 Appendix Problems
Suppose the state government levies a tax of $9 on each DVD sold, collected from sellers. (Refer to
Chapter 2 Problem 2 for other details.)
a. What quantity of DVDs will be sold in equilibrium?
b. What price do buyers pay?
Suppose the demand for crossing the Golden Gate Bridge is given by Q = 10,000 1000P.
a. If the toll (P) is $3, how much revenue is collected?
b. What is the price elasticity of demand at this point?
c. Could the bridge authorities
Solutions for Study Problem Set (Part 3)
The Acme Seed Company charges $2/lb for the first 10lb you buy of marigold seeds each
week and $1/lb for every pound you buy thereafter. If your income is $100/wk, draw your
Solutions for Study Problem Set (Part 2)
Chapter 2 Problems
2. The market for DVDs has supply and demand curves given by P`=2QS and P=42-Qd,
a. How many units will be traded at a price of $35? At a price of $14? Which participants
will be di