Orange Juice Market: -Initial equilibrium is at a price of $50 a crate and a qua


Orange Juice Market:
-Initial equilibrium is at a price of $50 a crate and a quantity of 300.
-A hurricane rips through the California countryside and destroys a large amount of the orange crop.
-At the initial equilibrium price of $50, quantity supplied on the new supply curve is 175.
Instructions:
Use the information above to answer the following questions in an essay format:
1. Is there excess demand or excess supply in the interim period before the new equilibrium? (Please make sure that you explain why there is excess demand or supply)
2. After market forces are allowed to work is the new equilibrium price higher or lower?
3. Why is the new market equilibrium price higher or lower? (For full credit describe in a couple sentences what is happening initially after the shift, when the market is in disequilibrium)
4. ***Graph the market and the subsequent changes in the market on a piece of paper/tablet. Please make sure that you label all of the key points and information on the graph and submit a picture or file of your graph below your short answers into the textbox below. Please make sure that your image is NOT an HEIC or HEIF file. You should upload your image as a JPEG file, PNG file, etc. ****
Preface: The following initial conditions exist in the pharmaceutical drug market for nerve pain medication:
-Initial Equilibrium Price (P): $35 per prescription bottle
-Initial Equilibrium Quantity (Q): 2,000 prescription bottles
Now suppose that Hurricane Maria destroys a “majority” of the production facilities that were producing nerve pain medication. Simultaneously, new research is published that shows that nerve pain medication is “slightly” better at treating migraine headaches than the currently prescribed class of medications.
Instructions:
Use the information above to answer the following questions in an essay format:
1. Can we say with certainty what happened to the equilibrium price in the nerve pain medication market? Why or why not?
2. Can we say with certainty what happened to the equilibrium quantity in the nerve pain medication market? Why or why not?
3. ***Graph the market and the subsequent changes in the market on a piece of paper/tablet. Please make sure that you label all of the key points and information on the graph and submit a picture or file of your graph below your short answers into the textbox below. Please make sure that your image is NOT an HEIC or HEIF file. You should upload your image as a JPEG file, PNG file, etc. ****
Labor Market:
Equilibrium is initially at a wage of $15 and Q=25,000
Questions:
1. Suppose the government sets the minimum wage at $10. What is the likely effect from the minimum wage? Explain your reasoning.
2. Suppose the government sets the minimum wage at $30. What is the likely effect from the minimum wage? Explain your reasoning.
3. What is the basic effect, from an effective price floor, in a supply and demand model of a labor market? Why do some politicians and public policy makers, believe that the minimum wage causes more harm than good in a labor market?
4. ***Graph the market and the subsequent changes in the market on a piece of paper/tablet. Please make sure that you label all of the key points and information on the graph and submit a picture or file of your graph below your short answers into the textbox below. Please make sure that your image is NOT an HEIC or HEIF file. You should upload your image as a JPEG file, PNG file, etc. ****
Third-Party Payer Market
-Suppose that co-payments are set at $20 per doctor visit and quantity demanded is 60 from patients
-In order for doctors to supply 60 doctor visits the price has to be $100
-Suppose that in a regular market (no third-party), the equilibrium price is $60 and the quantity is 30
Questions:
1. What are the total out of pocket costs for patients?
2. What are the total third-party payer (insurance company) costs?
3. What are the total costs in a third-party payer market?
4. What are the total costs in a regular market (no third-party)?
5. Why is there a difference between a regular market and a third-party payer market in regards to total costs? What is the difference?
6. ***Graph the market on a piece of paper/tablet. Please make sure that you label all of the key points and information on the graph and submit a picture or file of your graph below your short answers into the textbox below. Please make sure that your image is NOT an HEIC or HEIF file. You should upload your image as a JPEG file, PNG file, etc. ****


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