1. According to Figure 3.3, at what price would Tom buy 12 hours of web tutoring?
(a) Without a lottery win.
(b) With a lottery win.
2. According to Figures 3.5 and 3.6, what would the new equilibrium price of tutoring services be if Carlos decided to stop tutoring?
3. According to the News on page 61
(a) What was the initial price of a ticket to the NCAA finals?
(b) At that price was there (A) an equilibrium, (B) a shortage, or (C) a surplus?
4. Given the following data on gasoline supply and demand,
(a) What is the equilibrium price?
(b) How large a market shortage would exist if government set a price ceiling of $1 per gallon?
Price per gallon $5.00 $4.00 $3.00 $2.00 $1.00 $5.00 $4.00 $3.00 $2.00 $1.00 Quantity demanded (gallons per day) Quantity supplied (gallons per day)
|
Al
|
1
|
2
|
3
|
4
|
5
|
Firm A
|
3
|
3
|
2
|
2
|
1
|
|
Betsy
|
0
|
1
|
1
|
1
|
2
|
Firm B
|
7
|
5
|
3
|
3
|
2
|
|
Casey
|
2
|
2
|
3
|
3
|
4
|
Firm C
|
6
|
4
|
3
|
3
|
1
|
|
Daisy
|
1
|
3
|
4
|
4
|
6
|
Firm D
|
6
|
5
|
3
|
2
|
0
|
|
Eddie
|
1
|
2
|
2
|
3
|
5
|
Firm E
|
4
|
2
|
2
|
2
|
1
|
|
Market total
|
|
|
|
|
|
Market total
|
|
|
|
|
|