This website uses cookies to ensure you have the best experience. Learn more

Economics Essay

858 words - 4 pages

-------------------------------------------------
AB224 Unit 6 Assignment Template:
Name: -
Course Number: -
Section Number: -
Unit Number: - 6
Date: -

---------------------------------- General Instructions for all Assignments-----------------------------------
1. Unless specified differently by your course instructor, save this assignment template to your computer with the following file naming format:
Course number_section number_LAST_FIRST_ unit number

2. At the top of the template, insert the appropriate information: Your Name, Course Number, Section Number and Date

3. Insert your answers below, or in the appropriate space provided for in the question. Your ...view middle of the document...

10 per hundredweight of cheese. One hundredweight is 100 pounds.) At that price, according to data from the USDA, the quantity of cheese produced in 2009 by U.S. producers was 212.5 billion pounds, and the quantity demanded was 211 billion pounds. To support the price of cheese at the price floor, the USDA had to buy up 1.5 billion pounds of cheese. The accompanying diagram shows supply and demand curves illustrating the market for cheese.

a. In the absence of a price floor, the maximum price that a few of the consumers are willing to pay is $0.20 for a pound of cheese whereas the market equilibrium price is $0.13 per pound. The graph also shows that the minimum price at which a few of the producers are willing to sell is $0.06 per pound. In the absence of a price floor, how much consumer surplus is created?

b. How much producer surplus?

c. What is the total surplus?

d. The maximum price that a few of the consumers are willing to pay is $0.20 per pound of cheese, and the price floor is set at $0.17 per pound. With the price floor at $0.17 per pound of cheese, consumers buy 211 billion pounds of cheese. How much consumer surplus is created now?

e. The minimum price at which a few of the producers are willing to sell a pound of cheese is $0.06, and the price floor is set at $0.17 per pound. With the price floor at $0.17 per pound of cheese, producers sell 212.5 billion pounds of cheese (some to consumers and some to the USDA). How much producer surplus is created now?

f. The surplus cheese USDA buys is the difference between the quantity of cheese producers sell (212.5 billions of pounds of cheese) and the quantity of cheese consumers are willing to buy at the price floor (211...

Other Papers Like Economics

Economics Essay

1143 words - 5 pages According to the book of "Economics in One Lesson" by Henry Hazlitt, this book is an analysis of economic fallacies which are quite prevalent. The first part of this book argues that the art of economics consists in looking the short and long term effects of any policy for the whole groups (Hazlitt, 2008). Some public policies published by government address the problem and benefit the community in the long run, while other policies only benefit

Economics Essay

1946 words - 8 pages Milestone 1: Business Recommendations Based on Economic Projections Business Recommendations Based on Economic Projections Economics Business Recommendations Based on Economic Projections Market Structure Business recommendations for Big Drive Auto will focus on pricing strategies, possible economic change over the next five years, business decisions related to trade and specialization and how they will affect future

Economics

1014 words - 5 pages Definitions of Economics - Economics is the study of how people, firms and societies choose to allocate their scare resources to satisfy some of their unlimited wants. Definitions of Unemployment - Unemployment in a country is measured by the unemployment rate. It rises during a period of recession and falls during a period of expansion. Definition of inflation - Inflation is defined as the persistent and sustained

Economics - 823 words

823 words - 4 pages ECONOMICS Kofi A. Annan of Ghana, the seventh Secretary-General of the United Nations, is the first to be elected from the ranks of UN staff. His first five-year term began on 1 January 1997 and, following his subsequent re-appointment by the UN Member States, he will begin a second five-year term on 1 January 2002. As Secretary-General, Mr. Annan has given priority to revitalizing the UN through a comprehensive programme of reform

Economics - 2799 words

2799 words - 12 pages ECONOMICS FOR DEMOCRATIC AND OPEN SOCIETIES PROJECT POLICY PAPER #2 The Economics of Outsourcing: How Should Policy Respond? Abstract Outsourcing is a central element of economic globalization, representing a new form of competition. Responding to outsourcing calls for policies that enhance national competitiveness and establish rules ensuring acceptable forms of competition. Viewing outsourcing through the lens of competition connects with

Economics - 1383 words

1383 words - 6 pages Ownership in Transition Economies. Journal of Economic Literature, 47(3) 699-728. Use the UCL Economic Journals page and choose the Atypon link. Bhaumik, S and Estrin, S. (2007). ‘How transition paths differ: enterprise performance in Russia and China’ Journal of Development Economics 82 (2007) 374–392 Link Carlin, W., Schaffer, M. and Seabright, P. (2012) “Soviet power plus electrification: what is the long-run legacy of communism?”, Explorations in

Economics - 1108 words

1108 words - 5 pages Running Header: Consumption Patterns and Definitions Economics Economics is the study of how human beings coordinate their wants and desires, given the decision-making mechanisms, social customs, and political realities of the society. In reference to economics coordination refers to how three central problems facing any economy are solved. They are: 1. What, and how much, to produce. 2. How to produce it

Economics - 2882 words

2882 words - 12 pages Unemployment: An evil necessity? 1. Introduction By definition economics is “a social science concerned chiefly with description and analysis of the production, distribution, and consumption of goods and services.” And as with other types of sciences, economics contains many beliefs and theories that may be difficult to understand, yet are essential in the “day to day” decision making for many people. But also like other sciences, economics

Economics - 2855 words

2855 words - 12 pages Question 1: Elasticity is a very important conception in economics. It is ‘a measure of how much one economic variable—such as the quantity demanded of a product—responds to changes in another economic variable—such as the product’s price’(Hubbard, Garnett, Lewis, and O’brien 2010). There are four different but relevant elasticities—price elasticity of demand, cross-price elasticity of demand, income elasticity of demand and the price

Economics - 565 words

565 words - 3 pages UNIVERSITY OF DUBAI MBA 600 - MANAGERIAL ECONOMICS TAUGHT BY PROFESSOR AZZEDDINE AZZAM FALL 2011 GRADED ASSIGNMENT 2 40 POINTS (PLEASE HAND IN BY 6:30 PM ON WEDNESDAY 14 DECEMBER, 2011) Course Learning Objectives: 2. Understand competitive markets and economic efficiency. 3. Use firm and industry cost curves for production and strategic decisions

Economics - 670 words

670 words - 3 pages Economics Exam 2 Essay 1. With capital, we mean investments in technology. Capital investment such as machinery and equipment to enhance the productivity of labor can increase the marginal product of labor. In other words, capital investment can enhance productivity of labor given other factors of production remain the same. More college education, if standalone - meaning without additional investment in technology, might not produce the same

Related Essays

Economics Essay 612 Words

612 words - 3 pages Implications of Economics and Policy for Health Professionals Katrina Hill Health Policy and Economics Dr. Shana Lavarreda September 7, 2014 Discipline of Health Economics Many years ago healthcare and its delivery system were limited in care for patients or treatment options for physicians. The procedure of care includes diagnosis, treatment, prevention, rehabilitation, and palliative care (Buchbinder, 2012

Economics Essay 719 Words

719 words - 3 pages Tutorial 1 Questions (based on Textbook End-of-Chapter Questions) Question 1 Refer to Q1.1 Chapter 2 (Page 118) What do economists mean by opportunity cost? According to this definition, is there anything that does not have an opportuntiy cost? Question 2 Refer to Q1.2 Chapter 1 (Page 78). What is scarcity? Why is scarcity central to the study of economics? Question 3 Refer to Q1.10 Chapter 1

Economics Essay 1308 Words

1308 words - 6 pages Option 1 a A basic assumption in traditional economics is that utility increases with the consumption of more goods and services, the concept mostly commonly known as “more is better” this concept explains that all else equal, a person prefers more consumption to less. However their consumption may not always be what they prefer, they may be restricted in their preferences due to resource constraints such as time and money, money being the most

Economics Essay 5568 Words

5568 words - 23 pages omECO 204, 2010-2011, Test 3 Solutions  This test is copyright material and may not be used for commercial purposes without prior permission    University of Toronto, Department of Economics, ECO 204 2010 ‐ 2011 Ajaz Hussain  TEST 3 SOLUTIONS 1   These solutions are purposely detailed for your convenience  YOU CANNOT LEAVE THE ROOM IN THE LAST 10 MINUTES OF THE TEST  REMAIN SEATED UNTIL ALL TESTS ARE COLLECTED  IF YOU DETACH PAGES IT’S