💬 👋 We’re always here. Join our Discord to connect with other students 24/7, any time, night or day.Join Here!

Master student of development economics from the University of Nottingham and the University of Tubingen. With a bachelor’s in economics and government with Public affairs of the Andes University. Skilled in statistical analysis, policy recommendation, and the effective handling of statistical software to provide data-oriented solutions. Committed, creative, and enthusiastic for education and improving peoples lives.

The equation for a supply curve is P = 3Q – 8. What is the elasticity in moving from a price of 4 to a price of 7?

$Numerical$ $problem$ $on$ $consumer$ $surplus$: Assume that the demand for travel over a bridge takes the form $Y=1,000,000-50,000 P,$ where $Y$ is the number of trips over the bridge and $P$ is the bridge toll (in dollars).a. Calculate the consumer surplus if the bridge toll is S0, $\$ 1,$ and $\$ 20$b. Assume that the cost of the bridge is $\$ 1,800,000$ Calculate the toll at which the bridge owner breaks even. What is the consumer surplus at the breakeven toll?c. Assume that the cost of the bridge is $\$ 8$ million. Explain why the bridge should be built even though there is no toll that will cover the cost.

If a $10 \%$ decrease in the price of one product that you buy causes an $8 \%$ increase in quantity demanded of that product, will another $10 \%$ decrease in the price cause another $8 \%$ increase (no more and no less) in quantity demanded?

Table 3.9 illustrates the market's demand and supply for cheddar cheese. Graph the data and find the equilibrium. Next, create a table showing the change in quantity demanded or quantity supplied, and a graph of the new equilibrium, in each of the following situations: a. The price of milk, a key input for cheese production, rises, so that the supply decreases by 80 pounds at every price.b. A new study says that eating cheese is good for your health, so that demand increases by $20 \%$ at every price.$$\begin{array}{|l|l|l|}\hline {\text { Price per Pound }} & {\text { Qd }} & {\text { Qs }} \\\hline \$ 3.00 & 750 & 540 \\\hline \$ 3.20 & 700 & 600 \\\hline \$ 3.40 & 650 & 650 \\\hline \$ 3.60 & 620 & 700 \\\hline \$ 3.80 & 600 & 720 \\\hline \$ 4.00 & 590 & 730 \\\hline\end{array}$$