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##### ECON 213 PROBLEM SET 1

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Question;Problem Set 1;Name;Problem Set 1 is to be;completed by 11:59 p.m. (ET) on Monday of Module/Week 2.;Based on the information provided for the market for;video games, answer the following questions.;PRICE;Q DEMANDED;Q SUPPLIED;\$50;5;9;\$45;7;7;\$40;9;5;\$35;11;3;\$30;13;1;Draw and properly;label the demand and supply graphs (this means you must label the axes and any;lines you include on the graph).What is the;equilibrium price and quantity?a.)b.) PRICE;QUANTITY;Now, assume that a new;government report claims that video game play stimulates the brain.What will this do;to the demand curve? Of the available list of things in the text that causes a;change in demand, which best fits here as the cause of the demand shift?What will happen;to the equilibrium price and quantity?;P;Q;Based on the following information for the state of;Montana,a. Draw;the Production Possibilities Curve.b. Determine;the opportunity costs for a move from A to B, B to C, and C to D.;CHOICE;OIL / barrels;WHEAT / bushels;A;5000;0;B;4500;10000;C;2500;20000;D;0;25000;a.);b.) A to B: _____________ B to C: __________________ C to D;In the space provided you are to do a number of;things:a. Draw;and properly label a demand and supply curve.b. Indicate;where the equilibrium Price and Quantities are located.c.;How do things change based on the following scenario?;The market for;hybrid cars is changing. There are more providers but due to bad publicity and;poor performance, demand is falling.Knowing this information, you;need to first tell me, and then show;this in your graph;What is the market you are dealing with?Which curve(s) change and based on the lists in the;text of what causes demand and supply to shift what are the causes of theses;shifts?In what direction do they change? What happens to the equilibrium;price and quantity after these changes are put into effect? Do they go up, down;or stay the same?P: _______________________ Q;Using the following information for individuals and;their willingness to pay for a bottle of ginger ale, calculate the total;consumer surplus at a market price of \$5.;Maximum amount a buyer;would pay for ginger ale;Scott;\$10;Dennis;\$4;Greg;\$8;Dave;\$7;Mike;\$5;Using the information below;about willingness to supply ginger ale, calculate the total producer surplus at;a market price of \$5.;Marginal cost of producing;ginger ale;Gene;\$6;Brandon;\$3;Matt;\$2;Cooper;\$11;Jed;\$5;How do your answers change if;the price falls to \$2?

Paper#56817 | Written in 18-Jul-2015

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