Consider the following supply and demand equations: Supply: p = 10 + q Demand: p = 100 − 2q Show your work as your respond to the following questions.

(a) What is the market equilibrium price and quantity?

(b) What is the Total Surplus at equilibrium?

(c) The government enacts a price ceiling at ¯p = 50. What is the Total Surplus?

(d) Calculate the Consumer Surplus under a price ceiling of ¯p = 20.

(e) What is the Deadweight Loss under a price ceiling of ¯p = 10?

10. The government has implemented a new policy to support the price of chickpeas at $12.81/cwt. (A cwt means “hundred weight” or 100 pounds but that is not important for the answer). If the chickpeas market equilibrium price is $10.55/cwt, the equilibrium quantity of chickpeas is 69.432 million cwt, the elasticity of supply is 0.25, and the elasticity of demand is -0.75, then what is the new quantity supplied and the new quantity demanded of chickpeas at the support price? How much chickpeas would the government need to buy to keep the price supported at $12.81/cwt?

Consider the following supply and demand equations: Supply: p = 10 + q Demand: p = 100 − 2q Show your work as your respond to the following questions.

(a) What is the market equilibrium price and quantity?

(b) What is the Total Surplus at equilibrium?

(c) The government enacts a price ceiling at ¯p = 50. What is the Total Surplus?

(d) Calculate the Consumer Surplus under a price ceiling of ¯p = 20.

(e) What is the Deadweight Loss under a price ceiling of ¯p = 10?

Suppose the island of Atlantis imports only one product, machinery parts, at a per unit price of $125. At the same time, its only export good is palm oil, which sells at $250 per unit on world markets. Atlantis currently exports 100 units of palm oil.
Suppose that over time the import price of machinery parts rises to $150 while the world palm oil price decreases to $200.

Are these price changes in line with the Prebisch-Singer hypothesis? Why or why not

1. Consider the following supply and demand equations:

Supply: p = 10 + q

Demand: p = 100 − 2q

Show your work as you respond to the following questions.

1. What are the market equilibrium price and quantity? (5%)
2. What is the Total Surplus at equilibrium? (5%)
3. The government enacts a price ceiling at ¯p = 50. What is the Total Surplus? (5%)
4. Calculate the Consumer Surplus under a price ceiling of ¯p = 20. (5%)
5. What is the Deadweight Loss under a price ceiling of ¯p = 10?

The maker of lawn mowers finds that when they raise the price of a lawnmower from $50 to $75 that quantity demanded among residential customers drops from 100 to 90. Among golf course customers quantity demanded drops from 80 to 40.

a. Calculate the price elasticity of demand for each group. Show all calculations.

b. Is demand price elastic or price inelastic for each group?

c. Using the determinants of demand, explain why there is a difference in elasticity for each group.

Fiji tattslotto sells a lottery ticket for two dollars. Out of 10,000 tickets printed for this lottery, 1 ticket has a price of five thousand dollars, 5 tickets have a price of one thousand dollars each, 100 tickets have a price of $10 each and 1000 tickets contain a price of five dollar each. Let X be the r.v. that denotes the net amount a player wins in this lottery.

a write the probability of distribution of X.

b.Determine the mean of X.

An investor buys a European call on a share for $5. The current stock price is $102 and the strike price is $100. (a) Under what circumstances will the investor make a profit (have positive profit) on the expiration date? (b) Under what circumstances will the option be exercised on the expiration date? (c) Please draw a diagram showing how the investor’s profit depends on the stock price on the expiration date. To put it another, draw a diagram showing the relationship between the investor’s profit and the stock price on the expiration date

Consider the following demand function for game consoles: (D): P = 400 - 20Q

1. Assume that the price decreases from 150$ to 100$.

a. Calculate the price elasticity of demand.(midpoint method )

b. Is the demand elastic, inelastic or unit elastic?

c. What happens to Total Revenue?

2. Assume that the price decreases from 75$ to 50$.

a. Calculate the price elasticity of demand.(mid point method )

b. Is the demand elastic, inelastic or unit elastic?

c. What happens to Total Revenue?

Estimatethe total entropy change when 100.g of liquid water, initially at 298 K and 0.50 atm,is first heated to boiling at 373 K and 1.00atm, and the steamcollected at 1.00 atmsubsequently heated and compressed to 500Kand20.atm. UseDHvap(at 100 ̊C, 1 atm)= 40.6 kJ/mol and the following values for the heat capacity:CP,m(H2O,l) = 75.2 J/(K mol), CP,m(H2O,g) = 35.0J/(K mol)