# Problem Solving

• Bids0
• Budget \$0.00
• Average Bid \$0.00

Posted on

Active

#### Project Desciption

Anonymous

Problem 1

Bill can produce either tables or chairs. Bill can work up to 10 hours a day. His production possibilities are given in the table below:

 Tables Chairs 0 100 10 80 20 60 30 40 40 20 50 0
• Construct the production possibilities frontier (PPF) for Bill. Put tables on the Horizontal axis and chairs on the vertical axis.
• What is Bill’s opportunity cost of producing one additional table?
• What is Bill’s opportunity cost of producing one additional chair?
• Currently Bill is producing 20 tables and 40 chairs.
• Is this allocation of resources efficient? Why?
• Show this allocation on the graph and advise Bill how he can be more efficient.

Problem 2

Suppose the market for corn is given by the following equations for supply and demand:

QS = 2p − 2

QD = 13 − p

where Q is the quantity in millions of bushels per year and p is the price.

• Calculate the equilibrium price and quantity.
• Sketch the supply and demand curves on a graph indicating the equilibrium quantity and price.
• Calculate the price-elasticity of demand and supply at the equilibrium price/quantity.
• The government judges the market price is under expectations and announces a price floor equal to \$7 per bushel.
• Would there be a surplus or a shortage?
• What would be the quantity of excess supply or demand that results?
• Use the graph to show you results.
Student has agreed that all tutoring, explanations, and answers provided by the tutor will be used to help in the learning process and in accordance with Studypool’s honor code & terms of service.

#### Employer Information

2271 project(s) posted hire 2 freelancers
Member since: 2020-02-01
FREELANCER BIDDING (0)

There are no bids yet.

Hey? You want your project done, Whatsapp us Now.
Click to Submit a Project