×

### Let's log you in.

or

Don't have a StudySoup account? Create one here!

×

or

by: Waylon Crona

8

0

5

# Principles of Microeconomics ECO 230

Marketplace > Eastern Kentucky University > Economcs > ECO 230 > Principles of Microeconomics
Waylon Crona
EKU
GPA 3.55

Staff

These notes were just uploaded, and will be ready to view shortly.

Either way, we'll remind you when they're ready :)

Get a free preview of these Notes, just enter your email below.

×
Unlock Preview

COURSE
PROF.
Staff
TYPE
Class Notes
PAGES
5
WORDS
KARMA
25 ?

## Popular in Economcs

This 5 page Class Notes was uploaded by Waylon Crona on Sunday October 11, 2015. The Class Notes belongs to ECO 230 at Eastern Kentucky University taught by Staff in Fall. Since its upload, it has received 8 views. For similar materials see /class/221442/eco-230-eastern-kentucky-university in Economcs at Eastern Kentucky University.

×

## Reviews for Principles of Microeconomics

×

×

### What is Karma?

#### You can buy or earn more Karma at anytime and redeem it for class notes, study guides, flashcards, and more!

Date Created: 10/11/15
J F O39Connor Economics 230 Review Problems on the Simple Market Model 1 Determine the equilibrium price and quantity of milk in Figure l 2 In Figure 2 demand has decreased in that at each price 15 billion fewer quarts of milk are demanded Find the new equilibrium price and quantity What would have happened to equilibrium price and quantity if demand had increased by 15 billion quarts at each price 3 In Figure 3 supply has increased in that quantity supplied at each price is 30 billion quarts greater than in Figure 1 Find the equilibrium price and quantity 4 Suppose the government imposes a price oor of ninety cents per quart How much will be demanded How much will be supplied Will passing a law ensure that the price will be 90 cents Ifnot what other action will the government need to take to ensure that the price is 90 cents Use Figure 4 to answer this question 5 Suppose that government sets a price ceiling at 50 cents per quart How much will be demanded How much will be supplied How can the government ensure that the price does not exceed 50 cents Use Figure 5 6 Suppose that a speci c tax of 30 cents per quart is imposed on milk What will be the effect on the price paid by consumers the price received by producers and the quantity of milk How much revenue will be the taX generate How much of the taX burden is borne by consumers What will happen in the long run Use Figure 6 How would the results of the analysis differ if the taX were an ad valorem tax of 10 per cent 7 Suppose that a subsidy of 30 cents per quart of milk is introduced What will be the effect on the price paid by consumers the price received by producers and the quantity of milk How much will be the subsidy cost How much of the benefit will accrue to consumers What will happen in the long run Use Figure 7 These problems can be done also by using a table or simple algebra In Figure l the equation for demand is Qd 95 50 P and the equation for Qs 10 100 P Page l ooaquotd 69 D H oo squotd 69 D Figure 1 The Market for Milk 20 25 30 35 40 45 50 55 60 65 70 75 Quantity bil qt per year Figure 2 The Market for Milk 25 30 35 40 45 A Shift in Demand 50 55 60 65 70 75 Quantity bil qt per year Page 2 80 85 90 95 100 80 85 90 95 100 Donnaw 69 D oo squotd 69 D Figure 3 The Market for Milk Shift in Supply 25 30 35 40 45 50 55 60 65 70 75 Quantity bil qt per year Figure 4 The Market for Milk A Price Floor 25 30 35 40 45 50 55 60 65 70 75 Quantity bil qt per year Page 3 80 85 90 95 100 80 85 90 95 100 oo squotd 69 D oo aquotd 69 D Figure 5 The Market for Milk A Price Ceiling 25 30 35 40 45 50 55 60 65 70 75 Quantity bil qt per year 80 85 90 95 100 Figure 6 The Market for Milk An Excise Tax 25 30 35 40 45 50 55 60 65 70 75 80 85 90 95 100 Quantity bil qt per year Page 4 oo squotd Figure 7 The Market for Milk A Per Unit Subsidy 25 30 35 40 45 50 55 60 65 Quantity bil qt per year Page 5 75 80 85 90 951

×

×

### BOOM! Enjoy Your Free Notes!

×

Looks like you've already subscribed to StudySoup, you won't need to purchase another subscription to get this material. To access this material simply click 'View Full Document'

## Why people love StudySoup

Steve Martinelli UC Los Angeles

#### "There's no way I would have passed my Organic Chemistry class this semester without the notes and study guides I got from StudySoup."

Allison Fischer University of Alabama

#### "I signed up to be an Elite Notetaker with 2 of my sorority sisters this semester. We just posted our notes weekly and were each making over \$600 per month. I LOVE StudySoup!"

Bentley McCaw University of Florida

Forbes

#### "Their 'Elite Notetakers' are making over \$1,200/month in sales by creating high quality content that helps their classmates in a time of need."

Become an Elite Notetaker and start selling your notes online!
×

### Refund Policy

#### STUDYSOUP CANCELLATION POLICY

All subscriptions to StudySoup are paid in full at the time of subscribing. To change your credit card information or to cancel your subscription, go to "Edit Settings". All credit card information will be available there. If you should decide to cancel your subscription, it will continue to be valid until the next payment period, as all payments for the current period were made in advance. For special circumstances, please email support@studysoup.com

#### STUDYSOUP REFUND POLICY

StudySoup has more than 1 million course-specific study resources to help students study smarter. If you’re having trouble finding what you’re looking for, our customer support team can help you find what you need! Feel free to contact them here: support@studysoup.com

Recurring Subscriptions: If you have canceled your recurring subscription on the day of renewal and have not downloaded any documents, you may request a refund by submitting an email to support@studysoup.com