Question

2. Consider the same market for e-bikes in Boston. Suppose the market survey revealed that the quantity supplied is 0 when the price is $500 and quantity supplied is 1000 when the price is $2500. a. (3 pts) In the diagram below, plot the supply curve. Hint: Drag this line onto the coordinate system to draw the supply curve Price of e-bikes in $ 3250 3000 2750 2500 2250 2000 1750 1500 1250 1000 750 500 250 0 100 200 300 400 500 600 700 800 900 1000 Quantity of e-bikes b. (4 pts) Indicate the Price $1,500 in the graph and determine at that price how many e-bikes will be sold? Describe the relationship between price and quantity supplied. Make sure you use both the "horizontal definition" and "vertical definition" of supply we discussed in class. TYPE YOUR ANSWER HERE USING THIS FONT c. (3 pts) Identify the producer surplus at that quantity identified in 2b.

          2. Consider the same market for e-bikes in Boston. Suppose the market survey revealed that the quantity
supplied is 0 when the price is $500 and quantity supplied is 1000 when the price is $2500.
a. (3 pts) In the diagram below, plot the supply curve. Hint: Drag this line onto the coordinate system to
draw the supply curve
Price of e-bikes in $
3250
3000
2750
2500
2250
2000
1750
1500
1250
1000
750
500
250
0
100 200 300 400 500 600 700 800 900 1000
Quantity of e-bikes
b. (4 pts) Indicate the Price $1,500 in the graph and determine at that price how many e-bikes will be
sold? Describe the relationship between price and quantity supplied. Make sure you use both the
"horizontal definition" and "vertical definition" of supply we discussed in class.
TYPE YOUR ANSWER HERE USING THIS FONT
c. (3 pts) Identify the producer surplus at that quantity identified in 2b.

Show more…

2. Consider the same market for e-bikes in Boston. Suppose the market survey revealed that the quantity
supplied is 0 when the price is 500 and quantity supplied is 1000 when the price is2500.
a. (3 pts) In the diagram below, plot the supply curve. Hint: Drag this line onto the coordinate system to
draw the supply curve
Price of e-bikes in 3250
3000
2750
2500
2250
2000
1750
1500
1250
1000
750
500
250
0
100 200 300 400 500 600 700 800 900 1000
Quantity of e-bikes
b. (4 pts) Indicate the Price1,500 in the graph and determine at that price how many e-bikes will be
sold? Describe the relationship between price and quantity supplied. Make sure you use both the
"horizontal definition" and "vertical definition" of supply we discussed in class.
TYPE YOUR ANSWER HERE USING THIS FONT
c. (3 pts) Identify the producer surplus at that quantity identified in 2b.

Added by Michael L.

Principles of Economics

Gregory Mankiw 8th Edition

Instant Answer

Solved by Expert Supreeta N

08/22/2023

Step 1

The given points are (3250, 1750) and (2250, 1500). Plot these points on the graph. Show more…

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Texts: 2. 3.0 draw the supply curve 3250 3000 2250 2000 Price of e-bikes Ins 1,750 1,500 1,250 1,000 756 500 200 100 500 200 Quantity of e-bikes 4 pts Indicate the Price = $1,500 in the graph and determine at that price how many e-bikes will be sold. Describe the relationship between price and quantity supplied. Make sure you use both the horizontal definition and vertical definition of supply we discussed in class. TYPE YOUR ANSWER HERE USING THIS FONT 3 pts Identify the producer surplus at that quantity identified in 2b.

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Transcript

00:01 High now we are going to find approximately at what price is 2500 bikes are supplied and demanded.

00:09 So now we have to find the supply and demand curve as a function.

00:16 Now here the blue line denotes the supply curve.

00:21 So from that i take two points 0, 80 and 17, 65.

00:29 Then the slope m will be equal to 65 minus 80 divided by 17 minus 0 and this will be equal to minus 15 divided by 17.

00:42 Then the equation of line with slope m is equal to minus 15 divided by 17 and passes through the point 0, 80 can be written as y minus 80 is equal to minus 15 divided by 17 into x minus 0.

01:12 So from this we get y is equal to minus 15 divided by 17 x plus 80.

01:19 Now this is the equation for supply function.

01:24 So now in part a we have to find approximately at what price is 2500 bikes supplied.

01:32 Now here the given quantity is in 1000.

01:35 So we have to put x is equal to 2 .5 in the above equation.

01:41 Then we get the price y is equal to minus 15 divided by 17 into 2 .5 plus 80 and this will be equal to 77 .7941.

01:58 Now here the price is in 100.

02:00 So we have to multiply this by 100.

02:03 Then this will be equal to 7779 .411 dollar.

02:11 Now we have to round the answer to the nearest 50 dollar...

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