Respuesta :
Answer:
(a) The equilibrium quantity is Q* = 6 (b) The quantity supplied by private sellers is Q* = 0 (c) The new new equilibrium price is $9, the new equilibrium quantity is = 5 bags, and the bags were oranges were over produced is Q* = 1
Explanation:
Solution
(a) When the equilibrium price is at $8, the the quantity of equilibrium is stated as:
From the data given, when the price at equilibrium is $8, then the six consumers namely, bob, barb, bill, brat, Brent, Betty were all willingly to pay much more than the equilibrium price and the 6 producers namely, Carlos, Courtney, chuck, Cindy, Craig, chad accepted, because the price at equilibrium is greater than the minimum accepted price.
So,
The equilibrium price is Q* = 6
(b) If all the buyers are free riders, then the maximum willingness of the price of buyers is $0, because the willingness of the buyer's is lesser than the accepted minimum price of the sellers, for this producers will not be willingly to produce, thus the supplied quantity by private sellers is 0
Hence,
Q* = 0
(c) When forcing a $2-per-bag tax on sellers then, the price will increase to $9
So,
The new price of equilibrium is = $9
At the new equilibrium price $9 where 5 consumer and producer were willing and accepting to pay more than the equilibrium price
So,
The new equilibrium quantity is Q* = 5 bags
Now,
If the new equilibrium quantity of 5 bags is an optimal quantity,
Then,
(6-5) which results to 1 bag were overproduced.
Therefore,
Q* = 1
Equilibrium is the condition in which market supply and demand are balanced, culminating in constant prices.
In principle, an overabundance of goods or services leads prices to go down, resulting in higher demand, even though a scarcity or insufficient number causes prices to rise, resulting in reduced need.
(a) The equilibrium amount is Q* = 6
(b) The amount provided by private sellers is Q* = 0
(c) The new equilibrium price is $9, the new equilibrium quantity is = 5 bags, as well as the pouches in which oranges were overproduced, are Q* = 1.
(a) The amount of balance is defined as follows when the equilibrium price is $8:
According to the information, when the price at equilibrium is $8, the six buyers bob, barb, bill, brat, Brent, and Betty were all ready to pay much more than the equilibrium price, while the six producers Carlos, Courtney, chuck, Cindy, Craig, and Chad accepted because the price at equilibrium is greater than the minimum accepted price.
As a result, Q* = 6 is the final amount.
(b) If all buyers are free riders, then the maximum willingness of buyers' price is $0 because buyers' willingness is less than sellers' agreed minimum price, hence producers will not be willing to create, and so the volume supplied by private sellers is 0
As a result, Q* = 0
(c) If retailers are required to pay a $2 per bag tax, the price will go up to $9.
As a result, the equilibrium state price is $9.
At the new equilibrium price of $9, when 5 consumers and producers were ready and accepting to pay more than the equilibrium price, a new equilibrium price was formed.
As a result, Q* = 5 sacks is the new equilibrium volume.
Now, if the new equilibrium quantity of 5 bags is the optimal quantity, then (6-5) = 1 bag was overproduced.
As a result, Q* = 1.
To know more about the calculation of the equilibrium state, refer to the link below:
https://brainly.com/question/5538941
