ECON 3804 Study Guide - Quiz Guide: Economic Equilibrium, Aggregate Supply, Aggregate Demand
19 Dec 2016
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This problem set is due on tuesday oct. 4 at the beginning of class. Please note that this is a rm deadline, and late assignments will not be graded. You may work together with some other class mates, but you must write up your own work. Please complete all 3 questions: alvin"s demand for bottled water is given by qd. Calculate alvin and betty"s marginal and total willingness to pay for four bottles of water and illustrate graphically. Ps = 10 + 0. 5qs (a) graph these equations in a demand/supply diagram (be sure to show the value of any intercept points and label the axis). Calculate the competitive market equilibrium price (pc) and output (qc), and show them on the graph. Show your calculations. (b) suppose that a negative pollution externality in hamburger combos" exists result- ing from the health damages of air pollution produced in the production process.
