Question

11:12 Search ..11 < Back ECON 201 Midterm.docx 16. Consider the following table. Suppose quantity supplied increases by 30 for every price level. Find the new equilibrium price. Quantity Quantity Price tima supplied S1000 100 $8.00 2010 56.000 54.000 $2.00 20 50.00 60 0 Part B: Multi-part questions Q.1 (17 points) Answer each of the following separate parts. You are required to draw one or two graphs for each part, make sure that you label both axes correctly. (a) Due to the government shutdown, government organization does not have enough money to inspect the safety of raw meat. Draw a graph to show how the market for raw meat will be affected by the shutdown. (This question is about shifting) (b) Consider the demand for education at University of Washington, show how the price elasticity of demand will change if there are more universities built in Seattle. (e) Country A produces wheat and clothing. Suppose that the government requires clothing factories to pay a higher wage. Some clothing factories workers became unemployed as a result. Draw a graph to show the change in PPF. Assume opportunity cost is increasing. (d) Good A and good B are complements. Suppose the prices of raw materials for producing good A increases, draw a graph to show what happens to the market for good A. Draw another graph to show what happens to the market for good B. 203 Dashboard Calendar To Do Notifications Inbox

Answer 1

Q16) If supply increase by 30 at each price level, new demand and supply table is given as follows:

Price	Quantity demanded	Quantity supplied
10	10	130
8	20	110
6	30	90
4	40	70
2	50	50
0	60	30

Since the quantity demanded and quantity supplied are equal at a price of 2, this is the new equilibrium price.,