Author: chris

Economics Math (Market efficiency,Failure, and Welfare).

SAMPLE QUESTION 1

This problem takes you through the results of an experiment like yours, in which students are buying and selling used textbooks. In the first variation of the experiment, the buyers paid a tax of $4.

Here are the values for the willingness to pay for buyers and reservation price for sellers.
Buyer Buyer Value Seller Seller Cost
1 $16.00 1 $4.00
2 $15.50 2 $4.50
3 $15.00 3 $5.00
4 $14.00 4 $6.00
5 $13.50 5 $6.50
6 $13.00 6 $7.00
7 $12.50 7 $7.50
8 $12.00 8 $8.00
9 $11.00 9 $9.00
10 $10.50 10 $9.50
11 $10.00 11 $10.00
12 $9.50 12 $10.50
1.1. If the price is $10, how many buyers will be willing to buy? That is, how many buyers have a buyer value that is greater than or equal to the $14 cost of a textbook–$10 to the seller and $4 in tax? (As always, unless stated otherwise, we are following the convention that traders who are indifferent about trading at a price go ahead and trade, so someone with a buyer value equal to $14 will buy.)
Please enter a whole number, with no decimal point.

 

SAMPLE QUESTION 2

This problem takes you through the results of an experiment like yours, in which students are buying and selling used textbooks. In the first variation of the experiment, the buyers paid a tax of $4.

Here are the values for the willingness to pay for buyers and reservation price for sellers.
Buyer Buyer Value Seller Seller Cost
1 $16.00 1 $4.00
2 $15.50 2 $4.50
3 $15.00 3 $5.00
4 $14.00 4 $6.00
5 $13.50 5 $6.50
6 $13.00 6 $7.00
7 $12.50 7 $7.50
8 $12.00 8 $8.00
9 $11.00 9 $9.00
10 $10.50 10 $9.50
11 $10.00 11 $10.00
12 $9.50 12 $10.50
1.2. How many sellers will be willing to sell at a price of $10? That is, how many sellers have a seller cost that is less than or equal to $10?
Please enter a whole number, with no decimal point.

 

SAMPLE QUESTION 3

This problem takes you through the results of an experiment like yours, in which students are buying and selling used textbooks. In the first variation of the experiment, the buyers paid a tax of $4.

Here are the values for the willingness to pay for buyers and reservation price for sellers.
Buyer Buyer Value Seller Seller Cost
1 $16.00 1 $4.00
2 $15.50 2 $4.50
3 $15.00 3 $5.00
4 $14.00 4 $6.00
5 $13.50 5 $6.50
6 $13.00 6 $7.00
7 $12.50 7 $7.50
8 $12.00 8 $8.00
9 $11.00 9 $9.00
10 $10.50 10 $9.50
11 $10.00 11 $10.00
12 $9.50 12 $10.50
1.3. In the previous two questions, you learned that when buyers pay the $4 tax and the price is $10, there are more sellers than buyers. To clear this market, the equilibrium price will have to be:

Statistical significance.

Using the attached Excel file of the initial 100 responses from the 2008 U.S. Census Survey of Manufacturers develop and test a model with one dependent variable and four independent variables. Be sure to interpret:

  1. the statistical significance of your model,
  2. the amount of variance in your dependent variable explained by your predictors,
  3. the prediction equation, and
  4. the statistical significance of your independent variables provided that your model is significant.

LEMONADE.

LEMONADE STAND, PART I Background As you have read about in our lecture, we have used a lemonade stand to help us understand some basic concepts of business. As we pointed out, a lemonade stand has a simple business structure; yet, it can help us understand almost every function of a firm; such as marketing, operations, finance, technology, entrepreneurship and many other aspects. In our two assignments in this course, you will own and operate your very own lemonade stand as you apply the knowledge you have learned from the course. Scenario You have decided to open a lemonade stand in your local neighborhood. You have grand plans for this stand and expect to attract many customers.