Name:

Economic 102

Q1

0
0 2 4 6 8 10 12 14 16 18 20

Y-Values
a)
b) Equilibrium price = $4
Equilibrium quantity= 10 bushels
c) The equilibrium price and quantity on the graph is 4
d) There will be surplus of 12-5=7
e) On the graph

Q2

(1) Price (2) QA (3) (4) QB (5) (6) Qc (7)

$10 100 1000 100 1000 100 1000
9 111 999 130 1170 110 990
8 125 1000 170 1360 120 960
7 143 1001 220 1540 130 910
6 167 1002 280 1680 140 840
5 200 1000 350 1750 150 750

a) Movie A  Unitary

Movie B  Elastic

Movie C  Inelastic
 b) The Elastic movie A

Q3

Muy = Muz
Py Pz
But
Muy = 50 = 2
Py 25

Muz = 20 = 4
Pz 5

Since Muz > Muy

Pz Py
Therefore the consumer should consume or buy more of product