The diagram below illustrates the market for baseball in the US Refer to the figure. Prior to...
Question:
The diagram below illustrates the market for baseball in the US.
 |
Refer to the figure. Prior to opening the U' S. baseball market to trade, the equilibrium price of a baseball is
a. $10
b. $12
c. $16
d. $8
Competitive Equilibrium:
In a competitive market, price and output are determined at the equilibrium, which is the point where supply equals demand. At this point, there is a price such that the quantity supplied equals the quantity demanded.
Answer and Explanation: 1
Refer to the figure. Prior to opening the U' S. baseball market to trade, the equilibrium price of a baseball is (a) $10. The equilibrium price is the price where the supply and demand curves intersect with each other. As seen in the figure in this question, this occurs at a price of $10. At $10, the quantity supplied and quantity demanded both equal 600.
Ask a question
Our experts can answer your tough homework and study questions.
Ask a question Ask a questionSearch Answers
Learn more about this topic:
Get access to this video and our entire Q&A library
How to Calculate Market Equilibrium
from
Chapter 3 / Lesson 5
35K
Market equilibrium is accomplished when the supplier and the buyer agree on a price. Discover how shortages and surpluses affect market equilibrium, how to calculate market equilibrium, and how to illustrate it graphically.
Related to this Question
- Graphically show and link the long-run equilibrium in the goods market and money market, using MD-MS diagram, Investment Expenditure diagram, AE-Y diagram, and AD-AS diagram. Is the composition of Y* any different after the new long-run equilibrium establ
- Suppose that the market for sports watches is a competitive market. The following graph shows the daily cost curves of a firm operating in this market. For each price in the table calculate the qu
- Graphically show and link the long-run equilibrium in the goods market and money market, using MD-MS diagram, Investment Expenditure diagram, AE-Y diagram, and AD-AS diagram. Clearly describe based on your graphs, the long-term neutrality of money.
- Consider the firm with market power shown in the diagram below. The value of P_0 is equal to $23.9, the value of P_2 is equal to $7.9, and the value of Q_1 is equal to 88.5. P_1 is exactly halfway between P_0 and P_2. You can calculate it by adding up P_0
- On the appropriate diagram, show what happens to the market for pizza if the price of tomatoes rises. On a separate diagram, show what happens to the market for pizza if the price of hamburgers falls.
- Suppose that the market for sports watches is a competitive market. The following graph shows the daily cost curves of a firm operating in this market. For each price in the following table, calculate the firm's optimal quantity of units to produce, and d
- Consider the below graphs which depict the trade between the U.S. and ROW. What is the equilibrium international price? a. 0.75 C/W b. 1/2 W/C c. 1 W/C d. 2 W/C
- Illustrate the graph for a no trade embargo and a quota. Is the price and quantity for each higher or lower than free trade?
- Using a diagram, show the impact of population growth on the housing rental market in MQ. Show the change in the black market price. Show the change in the quantity traded in the market.
- Refer to the figure below. Find the equilibrium price and quantity. Analyze the market at a price of 9 and a quantity of 6.
- 'In a market society, collective behaviour determines the levels of incentives (or prices).' Explain, using diagram, the way in which prices are achieved in the market. In the diagram also show the co
- Smith has been trying to sell his house for six months, but so far he has had no buyers. Draw the market supply and demand diagram for Smith's house. Show the market equilibrium price and then the price that Smith might be asking. Using your diagram, expl
- Smith has been trying to sell his house for six months but so far has no buyers. Draw the market supply and demand diagram for Smith's house. Show the market equilibrium price and then the price that Smith might be asking. Using your diagram explain why S
- Sam brings $60 to a baseball game to spend on hot dogs and beer. The following diagram shows his budget constraint. A. According to the diagram, what are the prices of hot dogs and glasses of beer? B. Show how Sam's budget constraint would change if the p
- Eric brings $ 60 to a baseball game to spend on hot dogs and beer. The following diagram shows his budget constraint. According to the diagram, hot dogs are priced at ( a ) each and beer is priced at
- Suppose you can produce 1,000 units of S and sell them at market price $15. The price of good T is $10. Draw a diagram that shows the price line. Be sure to label the axis and intercepts and indicate
- Refer to the above diagram. When the market price is $19.50, we expect that the market price tends to go {Blank} and market quantity tends to go {Blank}, eventually. A. down; down B. down; up C. up; up D. up; down
- Consider the market for chocolate. Show on a separate graphs what happens to the equilibrium market price and quantity of chocolate for each event. axis and all curves must be labelled, and the initia
- Imagine the market for leather made basketballs. Please illustrate and specify the change in equilibrium price and quantity. (make sure you graph properly) a .A popular player comes to town that enco
- State, in words, and show with a graph, the effect of the following events on equilibrium price and quantity of the market given. a. Beetle infestation decimates tobacco crop. Market: cigars. b. Income in the US increases by 10%. Market: (Easy Mac, which
- Suppose that the price of gasoline is not allowed to change following the hurricane. That is to say, there is a price control in the gasoline market after hurricane. Provide a graph showing this price
- The following graph shows the supply and demand in the market for Blue-ray players. Use the black spot (cross symbol) to indicate the equilibrium price and quantity of Blue-ray players. Then use the
- Given the schedules 1 and 2 shown below: a. Plot, draw, label supply and demand curves and estimate Pe and Qe. b. if the government sets a price floor for this product at $8, what will the result be? Illustrate the price floor on your graph and describe t
- During the MLB World Series, the quantity demanded for baseball tickets is greater than the quantity supplied of baseball tickets. This situation is referred to as: A) an equilibrium shift B) market e
- If the big 4 banks in Australia collude and agree to charge a high price on banking products? Use graph/diagram to demonstrate the price and output in this market and explain your diagram
- a) A nation exports baseballs and imports baseball bats. Show this graphically using ppfs, community indifference curves, and relative price lines. Measure the number of baseballs on the vertical axis
- Illustrate the following situation with a graph showing short-run aggregate supply: A decrease in the price of oil.
- Use the graph to determine the effects of a higher price ceiling (but one below the monopoly price) and a lower price ceiling than the one shown here.
- A minor league baseball team is in the process of determining its ticket pricing policy. Past data suggests the following ticket sales elasticities: ticket price -0.6; refreshment price -0.2 and local population 0.7. a) if the local population increases
- The market for baseball tickets at your college stadium, which seats 2,000, is the following: |Price | Quantity Demanded |Quantity Supplied |$2 | 4,000 | 2,000 |4 | 2,000 | 2,000 |6 | 1,000 | 2,000 |8 | 500 | 2,000 a. What is the equilibrium price? b.
- Consider the market for prepared bratwurst in Germany. How would the equilibrium price and quantity of bratwurst be affected if bratwurst producers expect the price of bratwurst across Germany to fall next month? Explain using a diagram.
- 20 Figure 5-18 Refer to Figure 5-18. Using the midpoint method, what is the price elasticity of supply between $4 and $5? A. 1.80 B. 2.00 C. 0.50 D. 0.56
- On the figure below, show what happens in the market for strawberries when there is a drought that adversely affects the strawberry crop. Then use inequalities to show how the equilibrium price and qu
- Graphically illustrate a firm engaging in intertemporal price discrimination.
- Suppose that the market for black sweaters is a competitive market. The following graph shows the daily cost curves of a firm operating in this market. In the short run at a market price of $15 per
- 2. Suppose that the market for black sweaters is a competitive market. The following graph shows the daily cost curves of a firm operating in this market. In the short run at a market price of $15
- Suppose the equilibrium price for soccer tickets in a free market results in 15,000 tickets being purchased. Major League Soccer has decided to impose a price control of $22 per ticket. At a price of $22, soccer teams would be willing to supply 25000 tick
- Suppose that the market for frying pans is a competitive market. The following graph shows the daily cost curves of a firm operating in this market. For each price in the table calculate the quantit
- The following diagram shows supply and demand in the market for smart phones. (a.) Indicate in the diagram the equilibrium price and quantity of smart phones. (b.) Indicate the areas representing cons
- Suppose that the market for air fresheners is a competitive market. The following graph shows the daily cost curves of a firm operating in this market. For each price in the table calculate the qua
- According to the graph shown, answer the following questions about hammers. a. What is the equilibrium price of hammers before trade? b. What is the equilibrium quantity of hammers before trade? c.
- Suppose a huge snow storm has just hit Tulsa. Analyze the market for shovels. a. What is likely to happen to the price of shovels? b. Draw a diagram showing the old and new equilibrium price and quant
- Suppose that the market for wind chimes is a competitive market. The following graph shows the daily cost curves of a firm operating in this market. In the short run at a market price of $20 per win
- Suppose that the market supply of baseball caps in the local area is given by the following equation: Qs = 327 + 1P where Qs is the quantity baseball caps per month that sellers in the local area would be willing to provide at a price of P dollars. What i
- 5. Refer to the graph below, which shows costs for a perfectly competitive company. Use this information to answer the questions below. a. Assume that the market price is $4. The firm should sell [{B
- Consider the market for prepared bratwurst in Germany. How would the equilibrium price and quantity of bratwurst be affected if the incomes of consumers rise (bratwurst is an inferior good)? Explain using a diagram.
- The following diagram shows supply and demand in the market for laptops. Use the black point (plus symbol) to indicate the equilibrium price and quantity of laptops. Then use the green point (triangle
- Create your own diagram of any one of the four market interventions listed below. Tax Subsidy Price Ceiling Price Floor Your graph should show: Original market equilibrium The size of the tax o
- The figure below represents the market for corn, which is perfectly competitive. Farmer Roy is a producer of corn in this market. Use the information in the graph to describe the demand curve for Farmer Roy's corn.
- Refer to the figure. In graph (a), what is the price of good X relative to the price of good Y (i.e., P_X/P_Y)? a. 1/4 b. 1/3 c. 3 d. 4
- Consider the following graph, which depicts Mighty Max's labor demand for his duffel bag business. The labor demand curve shown is calculated based on a duffel bag price of $10. If the wage is $20, Mighty Max will hire [{Blank}] workers. a. 20 b. 30 c.
- Refer to the figure below and determine what price will the monopolist charge? a. W b. U c. Z d. V
- Look at the figure The Market for Economics Textbooks. At a price ceiling of $40, the market outcome would be a ___ of ___ textbooks.
- The diagram to the right shows a market in which a price floor of $3.50 per unit has been imposed. With the price floor, consumer surplus is $ 11,250 enter a numeric response using an integer, produc
- In the same market, assume a price ceiling of Pc=$24. With this price ceiling, find the new CS, PS, and DWL. Big hint. Draw a graph again. Pay close attention to the actual number of goods traded at t
- Given the following market diagram, create a price ceiling at P = $30 Instruction: Draw this price ceiling.
- Suppose that the market for cashmere sweaters is a competitive market. The following graph shows the daily cost curves of a firm operating in this market. In the short run, at the market price of $8
- The figure below presents information for a one-shot game. What are dominant payoffs for firm A and firm B respectively? A) (low price, low price) B) (high price, high price) C) (low price, high price) D) (high price, low price)
- Suppose that the market for microwave ovens is a competitive market. The following graph shows the daily cost curves of a firm operating in this market. In the short run, at a market price of $35 pe
- Refer to the graph below, which shows costs for a perfectly competitive company. Use this information to answer the following question. Assume that the market price is set in turn at the following thr
- Beer prices at major league baseball stadiums are usually much higher than prices at a bar or restaurant. This is mainly because: A) the owners' baseball teams are not profit maximizing. B) it costs the owners of the baseball teams more money to buy th
- Consider a perfectly competitive market for cartons of eggs. The graph below shows the cost curves for a typical firm in the industry as well as two market prices (labeled Price 1 and Price 2). At Pr
- The following diagram represents a market where there is a binding price floor. Part 1: Use the vertical drop line tool to show the quantities supplied and demanded when the price floor is in effect and label them appropriately. Part 2: Use an area tool
- a) Draw a diagram for the Canadian wheat market. Find the equilibrium price and quantity. b) Calculate the amount of surplus/shortage if the current market price is $8 per bushel. Analyze its impact on market price and quantity. c) Calculate the amoun
- Consider the market for buffalo wings. Beer is a complement; Pizza is a substitute. Show what happens in each of these situations (use a well labeled graph to illustrate your answer.) i) The price o
- The following graph shows the monthly demand and supply in the market for hats. Use the graph input tool to help you answer the following questions. Enter the amount into price field to see the quanti
- Show work and explain. Graph price ceiling and price floor. Show the expected impact of both policies on your product market. What kind of negative impacts are expected from imposing both policies?
- Use an indifference and budget constraint diagram (one diagram for each), illustrate, and explain: a. A consumer spends all his income on bread and juice. As the price of bread decreases, he now buys
- Larry brings $60 to a baseball game to spend on sodas and pizza. The following diagram shows his budget constraint. According to the diagram, soda costs $[{Blank}], and pizza costs $[{Blank}] per slice.
- Discuss with appropriate diagrams. a) Graphically demonstrate consumer surplus in the market for Butterfinger candy bars. b) The city of Springfield, USA levies a tax on Butterfinger bars to help pay
- Suppose that, in a competitive market without government regulations, the equilibrium price of gasoline is $3.00 per gallon. Complete the following table by indicating whether each of the statements is an example of a price ceiling or a price floor and wh
- In separate graphs, graphically illustrate what happens in the market for Colgate toothpaste and the market for Crest toothpaste, when the price of Colgate toothpaste increases. Offer a brief explanat
- The diagram below represents the market for paperback books. Please use it to answer the following questions. In the market for paperback books, producer surplus is: a. $15.00 b. $30.00 c. $
- If the market price equals P3, producer surplus can be identified in the diagram as area: a.C + F. b.A + B + E. c.C + D+ F. d.D. e.B + E.
- The government has decided that the free market price of cheese is too low. Suppose the government imposes a binding price floor in the cheese market. Draw a supply and demand diagram to show the effe
- Consider the market for cheesesteak sandwiches in an economy with the market equilibrium price of $5.00 per cheesesteak sandwich. 1. Suppose that the current price for one cheesesteak sandwich is $8
- Draw the appropriate diagram, and use it to explain the logical steps to explain how positive price effects can happen.
- A. Draw a diagram showing how agricultural price subsidy is given to farmers through establishing a price floor. B. Why economists consider this policy as inefficient? After all we support our farmers
- Graphically illustrate a firm engaging in peak-load pricing.
- Using words and a diagram, illustrate and explain the impact of a per-unit tax on a competitive market. Make sure to indicate the pre and post tax equilibrium (including the price that buyers pay and
- Refer to the figure above. Calculate the price elasticity when more consumer enter the market of Good X by lbs a) EpD = 1.28 b) EpS = 0.57 c) EpD = 0.57 d) EpS = 1.28
- Refer to the figure below. The lines shown in the diagram are isocost lines. Which of the following shows a decrease in the price of capital while the price of labor remains unchanged? Select one: a. the movement from BF to AF, b. the movement from BF t
- Suppose the market for cheesecake is a perfectly competitive market that is, sellers take the market price as given. Larry owns a restaurant where he sells cheesecake. The following graph shows Larry's weekly supply curve, represented by the orange line.
- Refer to figure 6.3. A binding price is shown in: a) Both panel (a) and panel (a) b) Panel (a) only c) Panel (b) only d) Neither panel (a) nor panel (b)
- Refer to the diagrams in which figures (a) and (b) show demand curves reflecting the prices Alvin and Elmer are willing to pay for the public good, rather than do without it. The collective willingness to pay for the first unit of this public good is: a
- Again, consider the following graph, which describes a single monopoly. Carefully following all numeric instructions, calculate the firm's total revenue. Price 40 32 28 16 620 7 1050 Quantity 880
- Consider a perfectly competitive market for shirts. The following graph shows the daily cost curves of a firm operating in this market. In the short run, at a market price of $18 per shirt, the firm
- Hotdogs are about $4 for a package of 8 dogs at the grocery store. At a baseball game, they cost $4 each. Using the concept of price elasticity of demand, explain why hotdogs cost more at a baseball game.
- A minor-league baseball team is trying to predict ticket sales for the upcoming season and is considering changing ticket prices. a. The elasticity of ticket sales with respect to the size of the local population is estimated to be about 0.7. Briefly exp
- Suppose that there is an announcement that chocolate causes cancer. What would happen to equilibrium price and quantity in the market for Godiva chocolate? Be able to draw the graph that illustrates y
- The U.S. government imposes a price floor for U.S coffee. Using a graph, illustrate the U.S. coffee Market with the price floor in place. Put price of coffee on the y-axis and quantity of coffee on t
- The table below shows cost data for a firm that is selling in a purely competitive market. Refer to the above cost chart. Which output level will the firm never produce? a. 12 b. 16 c. 10 d. 20
- Draw a graph showing the impact of students returning to campus in August on the market for pizza in a college town. If the price stays the same would that be an equilibrium? Why or why not? What will eventually happen in the market? What happens to the e
- Refer to the figure below. Assume that the consumer depicted in the figure faces prices and income such that she optimizes at point B. According to the graph, which of the following would cause the consumer to move to point A? a. a decrease in the price
- Shifts in a budget constraint Paolo brings $30 to a baseball game to spend on sodas and pizza. The following diagram shows his budget constraint: According to the budget constraint the price of soda
- Draw a graph to analyze the market for agricultural products (food). Label your price and quantity axes properly. In your graph, draw a supply curve for agricultural products (food) that obeys the law of supply. Label (S). In the same graph, draw a demand
- Refer to the Figure below. When the market price is P_3, a profit-maximizing firm's total revenue: a. Can be represented by the area P_3 \times Q_3, b. Can be represented by the area P_3 \times Q_2, c. Can be represented by the area (P_3-P_2) \times Q_3,
- Fill in the following table that summarizes the sale and cost situation confronting a monopolist. Use the figures in the table to: 1. Complete the table. 2. Graph the demand, MR, MC and ATC curves.
- Suppose that the market for Cashmere sweaters is a competitive market. The following graph shows the daily cost curves of a firm operating in this market. For each price in the table calculate the q
Explore our homework questions and answers library
Browse
by subject