find-another-set-of-equilibrium-prices-for-the-economy-in-example-1-suppose-the-same-economy-used-ja

Name: find another set of equilibrium prices for the economy in example 1 suppose the same economy used ja
Uploaded: 2019-08-05
Duration: 3 min
Channel: Numerade
Description: Find another set of equilibrium prices for the economy in Example $1 .$ Suppose the same economy used Japanese yen instead of dollars to measure the value of the various sectors' outputs. Would this change the problem in any way? Discuss.

Question

Find another set of equilibrium prices for the economy in Example $1 .$ Suppose the same economy used Japanese yen instead of dollars to measure the value of the various sectors' outputs. Would this change the problem in any way? Discuss.

Runpeng Li · Accepted Answer

and this problem. Um so we&#x27;re required to find another set of equilibrium prices for the economy in December 1. So from his number one, we found that the equilibrium prices as a vector ISS is there a point 94 and 0.81 and one with the skater, which is he has so price off the steel. And here&#x27;s the price of the critic from Price. So we just the market as peak. So in order to find another set of incredible prices, so is still determined by P s. But you stayed up 100 as take P s as 200. So tech skater into the factor. So the equilibrium prize, uh, will be there a point. 94 times. 200 and 0.85 times. 200 and 200. So it turns out this factor is 1 88 and 1 70 and 200. So remember the first Ah, the first entry represents Thea Price off price up cool. So that is 188 Second entry is price off electric. So that is 1 70 and the last entry price off steel. So that&#x27;s 200. So this is our This is another set off equipment prices. No. The other question needs that. Suppose the same economy used the Japanese yen and set up dollars to measure the value of the various sectors are hoops. So there&#x27;s change the problem anyway, So in terms off, um, if we&#x27;re considering only going the the numeric So Dad is, uh that will not change anything. We take 200. As the Japanese yen take back to the sector, the numbers will not change. But, um, instead upto vectors instead of the numbers. Uh, we need to consider exchange rate in this case because, you know, Japanese, Japanese yen and American dollars has a as, ah as an exchange rate, so the value is different, but the number is the same. So that&#x27;s the point here.

Jiapeng Guo · Answer

first, the first thing we should brush a fresh refresh ourselves with what does equal abran point me so you could leave them in the point at which quantity demanded is equal to quantity A supply it as we can see from this stable. The point e here is what we caught off is what we can&#x27;t equilibrium, price or equally main point. And when the price is above this point, see here. So at this case is one point for daughter began. A It&#x27;s a ukulele impress. So if the point press is 1.8 star per gallon, which is above the equal neighbor impress what&#x27;s we&#x27;re gonna? What we&#x27;re hyping is the quantity supplies become more than quantity minded because because off the hair press form firms fund profitable to produce more. As a result, production increases more than the equally had been quantity rights. As we can see here when the press is bob, it&#x27;s the quantity supplies of 700 where the Conte mandating is 500 years, 200 deficits between the quantity, supply and quantity demanded. Also a higher presses. People will demand the lies because is it&#x27;s more expensive. Therefore, on his supply Alexei&#x27;s quantity mandate. Keep this in mind with the surplus supplied is more with the surplus, which means quantities up supplies more than quantity mandates large stock get accumulated. That suppose puts pressure on sellers. So right because this is there some X X excess, supply it or surpass at here at this press. So there are some pressure for the firm&#x27;s because they can sell their you know, their gas. Elise rest. So this is because if they would not be enough, supply the firm&#x27;s run not gas enough cash to pay their workers because they cannot share their products. So producers cuts their presses to say are more and sell a sow their crews at lower press. So this about push the press to reach the yuko Labor Impress base, which is $1.4 a gallon. So same logic applies for the press when the press is below the equilibrium. At this 0.1 point two at this point is a quantum minded exceeds the quantity stockpile. This is because of lower press, you know, firms are not willing to produce more on the consumers. Albanians who buy more because of the price is very chief. So the firm&#x27;s recognize us that they have opportunity to make higher profits by saving their products at hair press at the results presses rays towards to the equally ben level.

Alanya Huang · Answer

Okay, So for this problem, we have a graph. Um and then we have a situation and economics, a point at which the supply equals the demand is the equilibrium price. If the supply of a product is greater than the demand, there&#x27;s a surplus and prices fall. If the supplies less than to demand there is a shortage and prices rise. So our question 29 is at what quantity will the prices stabilize? And what is the equilibrium price for this product? So the point at which the prices stabilized is equilibrium price, so we can identify that right here on our graph, and that&#x27;s gonna be at $10 the quantity that it will stabilize his 250,000 so the quantity will be 250,000 and then the price at which it stabilizes is $10. Because again, the statement says, the point at which the supply equals the demand is equilibrium price. So we know that equilibrium is the same thing as stabilization, and this point of intersection gives us the equilibrium, price as well as the quantity at which the prices will stabilize, which is 250,000

Tristan Wille · Answer

All right, So we are doing question number eight from chapter three. It&#x27;s asking, Does a price ceiling change the equilibrium price? So I&#x27;ve already gone ahead and drawn out an example of a price ceiling, and here we go. We have our supply and demand for whatever. We have a price ceiling put on that. Good. How is that gonna affect price? Well, in this particular price ceiling, remember that the ceiling essentially takes the place of the demand curve. The intersection. It&#x27;s here. So now with your newfound price ceiling, uh, you can see that the equilibrium price goes down. But what if the price ceiling were up here? Oh, Jesus. That is poorly drawn. Okay, what if you know, what? If we were different price ceiling or up here? Well, now, the intersection with this new demand curve and the supply curve is here. There is no reason for the economy to be producing there, though, because remember, the equilibrium is here. If we&#x27;re in this ceiling, the ceiling is above the equilibrium price. Well, it&#x27;s not gonna affect anything. Uh, you know, like, if you&#x27;re if the normally traded price of I don&#x27;t know if apples is $4 an apple, and the government issues a regulation saying, Hey, you cannot sell apples for more than $6 an apple. Well, so what? You&#x27;re still gonna be selling them at $4 because that&#x27;s the previously determined price by the market. So to answer this question, doesn&#x27;t price ceiling change the equilibrium price? Yes, if the ceiling is set at a price below the previous equilibrium price going back to the previous example If the ceiling was headed to dollars, well, then, yes, that would affect the price of the $4 the previously $4 apples. Whereas if we&#x27;re set a $6 that&#x27;s not gonna affecting the price at all.

Yang Su · Answer

Hello. So in this video, we&#x27;re going to answer the following questions. That&#x27;s the price setting. Change the equity been price. So before we get to discretion, let&#x27;s first your supply curve and the demand curve and notice. We put price on the Y axis. Comedy on the accesses supplies upward, sloping, humanity&#x27;s downward sloping, and we have an equilibrium price here. Call it a pretty and unequally Bram quantity and what we&#x27;re trying to answer is thus a price ceiling, a fat equilibrium price. And I think it depends. The answer is so recalled. The price ceiling is a regulation that says the price off certain good cannot exceed a certain amount. Supposed to price ceiling is here pc hired Andy current equilibrium price. Um, that means nothing you to be changed on this market, right? Because equilibrium thesis prices lowered and price ceiling. So it is OK, and in that case, this pricings basically not effective and you want a fat equilibrium price. However, when price ceiling is lower, then the currents are equilibrium price. We can clearly see that no matter you know what the origin of equilibrium is, the current price has to be here and then we don&#x27;t say this is an equilibrium because there&#x27;s a difference between demand and supply, but the current market price will be lower than the original equilibrium price.

Jiapeng Guo · Answer

So this question is interesting right from the test. Will we learn what&#x27;s gonna happen if we set a press floor here above the equally liked about above the equilibrium press? And we know that the year is except access supply, war surplus in the in the market. But here, what would happened if we impose a press floating closer? You collector impressed. For example, if we impose one right here, the new floor, if we impose one here, what&#x27;s gonna happen? Suppressing a theater on Millie effects? If the press flaw off floor is low enough, which means below the equilibrium press The reason is the same forties. We the same market forces that&#x27;s it tends to induce oppress you called for the E. Coli bumpers continue to operate. So that&#x27;s it. Before that, when we learned that there&#x27;s a forces that kind off the dancing height well, push everything to the U caliber impress, and if we sets a floor here, it&#x27;s steel. Well, push everything to the ukulele been press, so there&#x27;s no effect. So remember, if way sets a floor no effect so nothing will happen if we set a floor below the equilibrium. Press

Problem

Consider an economy with three sectors, Chemicals…

Problem 2 Easy Difficulty

Find another set of equilibrium prices for the economy in Example $1 .$ Suppose the same economy used Japanese yen instead of dollars to measure the value of the various sectors' outputs. Would this change the problem in any way? Discuss.

Answer

The problem does not change if we consider other currency instead of US dollars.

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David C. Lay, Steven R. Lay, Judi J. McDonald

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Kayleah T.

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Absolute Value - Example 1

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The problem does not change if we consider other currency instead of US dollars.

Linear Algebra and Its Applications

Kayleah T.

Maria G.

Kristen K.

Michael J.

Absolute Value - Example 1

Absolute Value - Example 2

David C. Lay, Steven R. Lay, Judi J. McDonaldLinear Algebra and Its Applications

Kayleah T.

Maria G.

Kristen K.

Michael J.

David C. Lay, Steven R. Lay, Judi J. McDonald

Linear Algebra and Its Applications