ECON 201 Fall 2017 Quiz 2 1. When price increases decreases increases and 2. The

Question

ECON 201 Fall 2017 Quiz 2 1. When price increases decreases increases and 2. The following is Tom's total value schedule for coconuts Q123 4 5 6 78910 TV 18 34 48 60 70 78 84 88 90 90 a. Write Tom's demand schedule for coconuts. Gerry produces coconuts. The following schedule gives Gerry's marginal cost of producing coconuts Q 1 2 3 4 5 67 8 9 10 MC3 10 11 12 b. If there are 100 buyers just like Tom and 100 sellers just like Gerry in the market, what will the equilibrium price and quantity be? Show this on a graph. Indicate the consumer and producer surplus on the graph. c. What will Tom's consumer surplus be and what will Gerry's producer surplus be?

Explanation / Answer

Answer 1. When price increase quantity increase and demand decreases .

Explanation: As per law of demand, when the price of any commodity increases then the quantity will increase but the demand will decrease.

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