Digoxin Level Has Decreased From 0.4 and She Has Begun to Have Atrial Fibrillation Again

Solutions

Homework I

1)� A vegetable fiber is traded in a competitive world market, and the world price is $nine per pound.� Unlimited quantities are bachelor for import into the The states at this toll.� The U.S. domestic supply and need for various cost levels are shown below.

Cost	U.S. Supply	U.Southward. Need
	(million lbs.)	(million lbs.)
3	ii	34
half-dozen	4	28
9	6	22
12	eight	sixteen
15	x	10
eighteen	12	4

a.� What is the equation for demand?� What is the equation for supply?

The equation for demand is of the course Q=a-bP.� First find the slope, which is

� You can figure this out by noticing that every fourth dimension price increases past 3, quantity demanded falls by 6 million pounds.� Demand is at present Q=a-2P. To find a, plug in any of the price quantity demanded points from the table:� Q=34=a-two*3 and then that a=xl and demand is Q=forty-2P.

The equation for supply is of the form Q = c + dP .� Showtime find the slope, which is

� Y'all tin can figure this out past noticing that every time price increases past 3, quantity supplied increases past two meg pounds.� Supply is now �� To discover c plug in whatever of the price quantity supplied points from the tabular array:� �so that c=0 and supply is

b.� At a price of $9, what is the price elasticity of demand?� What is information technology at cost of $12?

Elasticity of demand at P=9 is

Elasticity of demand at P=12 is

c.� What is the price elasticity of supply at $9?� At $12?

Elasticity of supply at P=9 is

Elasticity of supply at P=12 is

d.� In a free market, what will be the U.South. cost and level of cobweb imports?

With no restrictions on merchandise, world cost will be the cost in the United States , and so that P=$9.� At this price, the domestic supply is half dozen meg lbs., while the domestic need is 22 meg lbs. �Imports brand up the departure and are sixteen one thousand thousand lbs.

ii.� Much of the demand for U.Southward. agricultural output has come from other countries.� In 1998, the total demand for wheat was Q = 3244 - 283P.� Of this, domestic demand was Q_D = 1700 - 107P.� Domestic supply was Q_S = 1944 + 207P.� Suppose the export demand for wheat falls by 40 percent.

a .�������� U.Due south. farmers are concerned about this drop in consign demand.� What happens to the free market price of wheat in the United States ?� Do the farmers have much reason to worry?

Given total demand, Q = 3244 - 283P, and domestic demand, Q_d = 1700 - 107P, we may subtract and determine export demand, Q_{due east} = 1544 - 176P.

The initial market equilibrium toll is institute by setting full demand equal to supply:

3244 - 283P = 1944 + 207P, or

P = $2.65.

The all-time way to handle the 40 percent drib in export demand is to presume that the export need curve pivots down and to the left effectually the vertical intercept and then that at all prices demand decreases by 40 percentage, and the reservation price (the maximum price that the foreign state is willing to pay) does not change.� If you instead shifted the demand curve down to the left in a parallel fashion the upshot on toll and quantity will exist qualitatively the same, but will differ quantitatively.

The new export demand is 0.6Q_e=0.half dozen(1544-176P)=926.4-105.6P.� Graphically, export demand has pivoted inwards as illustrated in figure 2.5a below.

Total demand becomes

Q_D = Q_d + 0.6Q_e = 1700 - 107P + 926.4-105.6P = 2626.4 - 212.6P.

Figure ii.5a

Equating total supply and total need,

1944 + 207P = 2626.4 - 212.half dozenP, or

P = $one.63,

which is a significant driblet from the market-clearing toll of $ii.65 per bushel.� At this price, the marketplace-immigration quantity is 2280.65 one thousand thousand bushels. �Total revenue has decreased from $6614.6 million to $3709.0 million.� Most farmers would worry.

b.�������� At present suppose the U.S. government wants to purchase enough wheat each year to heighten the price to $3.50 per bushel.� With this drop in consign demand, how much wheat would the government have to buy?� How much would this price the government?

With a price of $3.50, the marketplace is not in equilibrium.� Quantity demanded and supplied are

Q_D = 2626.four-212.vi(3.v)=1882.3, and�

Q_S = 1944 + 207(3.v) = 2668.v.�

Excess supply is therefore 2668.5-1882.3=786.two one thousand thousand bushels.� The government must purchase this corporeality to support a price of $3.5, and will spend

$iii.5(786.ii million) = $2751.7 1000000 per year.

3)� The rent command agency of New York City has plant that aggregate need is

Q_D = 160 - 8P.� Quantity is measured in tens of thousands of apartments.� Price, the boilerplate monthly rental rate, is measured in hundreds of dollars.� The agency also noted that the increment in Q at lower P results from more than three-person families coming into the city from Long Isle and demanding apartments.� The city�s board of realtors acknowledges that this is a good demand estimate and has shown that supply is Q_{Due south} = seventy + sevenP.

a.�������� If both the bureau and the board are correct near need and supply, what is the gratis market price?� What is the change in city population if the agency sets a maximum average monthly rental of $300, and all those who cannot observe an flat leave the urban center?

To find the costless market price for apartments, set supply equal to demand:

160 - 8P = seventy + sevenP, or P = $600,

since cost is measured in hundreds of dollars.� Substituting the equilibrium price into either the demand or supply equation to determine the equilibrium quantity:

Q_D = 160 - (8)(6) = 112

and

Q_S = 70 + (seven)(six) = 112.

We find that at the rental rate of $600, the quantity of apartments rented is i,120,000.� If the rent control agency sets the rental rate at $300, the quantity supplied would then be 910,000 (Q_S = lxx + (7)(three) = 91), a decrease of 210,000 apartments from the complimentary marketplace equilibrium.� (Assuming three people per family per flat, this would imply a loss of 630,000 people.)� At the $300 rental rate, the demand for apartments is 1,360,000 units, and the resulting shortage is 450,000 units (1,360,000-910,000).� Nonetheless, backlog demand (supply shortages) and lower quantity demanded are non the same concepts.� The supply shortage means that the market place cannot suit the new people who would take been willing to movement into the city at the new lower price.� Therefore, the city population will only fall by 630,000, which is represented by the drop in the number of actual apartments from ane,120,000 (the old equilibrium value) to 910,000, or 210,000 apartments with 3 people each.�

b.�������� Suppose the agency bows to the wishes of the board and sets a rental of $900 per month on all apartments to allow landlords a �fair� rate of return.� If 50 percentage of whatsoever long-run increases in apartment offerings come from new construction, how many apartments are constructed?

At a rental rate of $900, the supply of apartments would be 70 + 7(9) = 133, or 1,330,000 units, which is an increase of 210,000 units over the gratuitous market place equilibrium.� Therefore, (0.5)(210,000) = 105,000 units would exist constructed.� Note, however, that since demand is only 880,000 units, 450,000 units would go unrented.

4)� In 1998, Americans smoked 470 billion cigarettes, or 23.5 billion packs of cigarettes.� The average retail cost was $2 per pack.� Statistical studies have shown that the price elasticity of demand is -0.4, and the cost elasticity of supply is 0.5.� Using this information, derive linear demand and supply curves for the cigarette market place.�

Let the need curve exist of the general grade Q=a-bP and the supply curve be of the full general form Q=c + dP , where a, b, c, and d are the constants that you take to find from the information given above.� To begin, recall the formula for the price elasticity of demand

You are given information about the value of the elasticity, P, and Q, which means that you tin can solve for the gradient, which is b in the higher up formula for the demand curve.�

To find the constant a, substitute for Q, P, and b into the to a higher place formula so that 23.five=a-4.seven*2 and a=32.ix.� The equation for demand is therefore Q=32.9-4.7P.� To find the supply curve, recall the formula for the elasticity of supply and follow the same method equally higher up:

To detect the constant c, substitute for Q, P, and d into the in a higher place formula so that 23.v=c+5.875*2 and c=11.75.� The equation for supply is therefore Q=11.75+5.875P.

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Source: http://akdeniz.bilkent.edu.tr/courses/micro/solhw1.htm

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