Look at the tables below, which show, respectively, the willingness to pay and willingness to accept...

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Look at the tables below, which show, respectively, the willingness to pay and willingness to accept of buyers and sellers of

c. Assume that we are back to talking about bags of oranges (a private good), but that the government has decided that tossed

If the new equilibrium quantity is the optimal quantity, by how many bags were oranges being overproduced before? Answer is c

business economics

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Answer 1

Answer #1

You should increase the minimum acceptable price by $2 at every quantity. this will increase the minimum acceptable price for Craig to $11. Then, new market equilibrium price will be $11

At this price the market equilibrium quantity will be 5 units

it means that previously there was an optimum quantity of 6 units and now it is 5 units so 1 unit was over produced.

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Answer 2

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