Chapter 2 Appendix Problems
5
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?
c.

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7.
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)
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1.
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
budget cons

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,
respectively.
a. How many units will be traded at a price of $35? At a price of $14? Which participants
will be di