Problems (Microeconomics)

Thebrainywriters.com stands as the unrivaled pinnacle of homework help services. With a team of expert writers, comprehensive subject coverage, a commitment to academic integrity, punctual delivery, 24/7 support, confidentiality, affordability, and a track record of triumphant testimonials, it has established itself as the go-to platform for students seeking excellence in their academic endeavors. As the educational landscape continues to evolve, Thebrainywriters.com remains an indispensable ally for students worldwide, guiding them towards academic success and a brighter future.

Problem Set 2

Name: __________________________________________

 

Problem Set 2 is to be completed by 11:59 p.m. (ET) on Monday of Module/Week 4.

 

 

1.      The following table presents data for wages in the market for internet security professionals.

(HINT: in the labor market the roles are reversed. Those who want to hire labor are the demanders. The workers enter the work force providing labor to the market place so they are the suppliers.)

Wage

Quantity Demanded

Quantity Supplied

$50,000

20,000

14,000

$60,000

18,000

18,000

$70,000

16,000

22,000

$80,000

14,000

26,000

$90,000

12,000

30,000

 

What is the equilibrium wage? ___________________________________

Now, consider this scenario: Due to an increase in the internet security threats, the government wants to apply a price control in this market to encourage more people to become internet security professionals. Assume that a wage control is set at $75,000. Will this increase the number of people entering this labor market? Why or why not? Will this increase the number of people hired? Why or why not?

 

 

 

 

 

 

 

 

2.      Assume you are a policymaker in Washington DC. Lobbyists for the preschoolers of America have put pressure on their representatives to cap prices on graham crackers. You have been assigned a position on a new committee to study the impact of a price ceiling on graham crackers.

 

Your job is to:

a.)     Illustrate using a fully labeled supply and demand graph (label all the axes and any lines you put in your graph) what such an artificial price looks like.

b.)    Explain what the results of such a move are for the graham cracker market. In other words, will there be a SHORTAGE, a SURPLUS, or neither created? Why?

 

 

3.      Pollution is considered by most a negative externality. Some economists would like to see the costs of these burdens incorporated into the price of goods that we buy. For instance, since coal fire power plants increase emissions that could potentially lead to climate change, these economists believe that the price we pay for electricity is not adequately high enough. Draw a completely labeled graph and illustrate on the graph how much higher electricity prices would be if the full costs of electricity production were taken into account. You do not need to provide actual numbers; rather, show on the price axis where the price would be before the externality is considered and the price after the externality is included. What problems might exist in determining this new, externality based, price?

 

 

4.      In the old days lighthouses were built along the coast to prevent ships from running aground on rocks in unfamiliar ports. By shining a beam of light over a port and guiding ships away from rocks, these vital buildings reduced the risk for ship captains and were generally considered to be extremely valuable resources. Curiously, lighthouses were almost always run and maintained by local governments. Explain in economic terms why private firms would not run a lighthouse.

 

 

Academic integrity is non-negotiable, and Thebrainywriters.com takes this principle to heart. Recognizing the significance of originality, the website guarantees that every assignment and paper is crafted from scratch. A strict anti-plagiarism policy and state-of-the-art plagiarism detection tools ensure that students receive unique and authentic content, giving them the confidence to submit their work without any concern. Time is of the essence in the academic realm, and Thebrainywriters.com understands the importance of meeting deadlines. Their unwavering commitment to punctuality ensures that students receive their completed assignments well before the submission date. This punctuality not only alleviates the stress of last-minute rushes but also allows students ample time for review and revision, promoting a deeper understanding of the subject matter. Recognizing that academic emergencies can arise at any hour, Thebrainywriters.com offers round-the-clock customer support. Students can rest assured that their queries and concerns will receive swift and attentive responses, regardless of the time zone they reside in. This dedication to customer care builds trust and fosters a supportive relationship between the website and its users.

 
Do you need a similar assignment done for you from scratch? We have qualified writers to help you. We assure you an A+ quality paper that is free from plagiarism. Order now for an Amazing Discount!
Use Discount Code "Newclient" for a 15% Discount!

NB: We do not resell papers. Upon ordering, we do an original paper exclusively for you.