Ok... so i never did economics in year 12, and now i do accounting at uni. one of my units is called Introductory Economics.
Both the tutor and lecturer are Indian and its pretty bad, but i cannot understand a single word either of them says. Im basically been foolishly stumbling my way through each week by reading the textbook, which is just blah blah blah words that seem like nonsensical jibberish to me.
sooo to the point of this thread. I was wondering if any of you wonderful, glorious economics experts could help me out with this homework question i have:
Assume that the (weekly) market demand and supply of tomatoes are given by the following figures:
Price ($ per kg) 4 3.5 3 2.5 2 1.5 1
Qd ('000 kg) 30 35 40 45 50 55 60
Qs ('000 kg) 80 68 62 55 50 45 38
(sorry for lack of proper table!)
a) Suppose that the government paid tomato producers a subsidy of $1.00 per kilo.
i) give the new supply schedule
ii) what will be the new equilibrium price
iii) how much will this cost the government?
b) Alternatively, suppose the government guarenteed tomato producers a price of $2.50 per kilo.
i) how many kils of tomatoes would it have to buy in order to ensure that all the tomatoes produced were sold?
ii) how much would this cost the government?
ANY HELP IS GREATLY APPRECIATED!!
Both the tutor and lecturer are Indian and its pretty bad, but i cannot understand a single word either of them says. Im basically been foolishly stumbling my way through each week by reading the textbook, which is just blah blah blah words that seem like nonsensical jibberish to me.
sooo to the point of this thread. I was wondering if any of you wonderful, glorious economics experts could help me out with this homework question i have:
Assume that the (weekly) market demand and supply of tomatoes are given by the following figures:
Price ($ per kg) 4 3.5 3 2.5 2 1.5 1
Qd ('000 kg) 30 35 40 45 50 55 60
Qs ('000 kg) 80 68 62 55 50 45 38
(sorry for lack of proper table!)
a) Suppose that the government paid tomato producers a subsidy of $1.00 per kilo.
i) give the new supply schedule
ii) what will be the new equilibrium price
iii) how much will this cost the government?
b) Alternatively, suppose the government guarenteed tomato producers a price of $2.50 per kilo.
i) how many kils of tomatoes would it have to buy in order to ensure that all the tomatoes produced were sold?
ii) how much would this cost the government?
ANY HELP IS GREATLY APPRECIATED!!