problem solving 90

Get perfect grades by consistently using our writing services. Place your order and get a quality paper today. Take advantage of our current 20% discount by using the coupon code GET20


Order a Similar Paper Order a Different Paper

Problem 1

Bill can produce either tables or chairs. Bill can work up to 10 hours a day. His production possibilities are given in the table below:

Tables

Chairs

0

100

10

80

20

60

30

40

40

20

50

0

  • Construct the production possibilities frontier (PPF) for Bill. Put tables on the Horizontal axis and chairs on the vertical axis.
  • What is Bill’s opportunity cost of producing one additional table?
  • What is Bill’s opportunity cost of producing one additional chair?
  • Currently Bill is producing 20 tables and 40 chairs.
  • Is this allocation of resources efficient? Why?
  • Show this allocation on the graph and advise Bill how he can be more efficient.

Problem 2

Suppose the market for corn is given by the following equations for supply and demand:

QS = 2p − 2

QD = 13 − p

where Q is the quantity in millions of bushels per year and p is the price.

1)Calculate the equilibrium price and quantity.

2)Sketch the supply and demand curves on a graph indicating the equilibrium quantity and price.

3)Calculate the price-elasticity of demand and supply at the equilibrium price/quantity.

4)The government judges the market price is under expectations and announces a price floor equal to $7 per bushel.

a)Would there be a surplus or a shortage?

b)What would be the quantity of excess supply or demand that results?

c)Use the graph to show you results.

Do you need help with this or a different assignment? We offer CONFIDENTIAL, ORIGINAL (Turnitin/LopesWrite/SafeAssign checks), and PRIVATE services using latest (within 5 years) peer-reviewed articles. Kindly click on ORDER NOW to receive an excellent paper from our writers.

Get a 15% discount on your order using the following coupon code SAVE15


Order a Similar Paper Order a Different Paper