Homework
#1, Econ 306, Prof. Hanson.
- A set of people who
want to buy a certain product have these marginal values: 55,30,75,95,40,60,65,35,100,50,85,70,90,80,45. Another set of people want to sell this
same product and have these marginal costs: 80,20,50,40,90,10,30,0,60,70. Graph the supply and demand curves
for this product and find the intersecting quantity and price for this
product.
- The demand for donuts
in the Johnsen Center on any given morning is given by Q = 20 –10 P, while the supply is given
by Q = 30P. What is the
competitive equilibrium quantity and price?
- The demand by
professors for student research assistants is given by Q = (100-P)/3 while the demand by students to be research assistants is
given by Q = 60-P. In equilibrium
how many research assistants are there and which side pays the other how much?
4.
Describe
the effect of each of these changes on the price and quantity of the market for
janitors:
a.
The
invention of a $10 million robot, which can replace a janitor in cleaning
buildings.
b.
Better
filters to prevent dust from entering and circulating in buildings.
c.
Allowing
easier immigration of workers from Haiti.
d.
An
increase in the average size of offices.