!
!""#$#%&'( *+ ,'-./ 0 12./3#4.4 – 5.3$#%& 6
#$
%&'() *+( ,(-.), /0)1*&2) 3, 4 #55 – 67 .), *+( 8099:; /0)1*&2) 38 4 <=5 > ?7@ .A 7:2* *+( /0)1*&2)8 2) *+( BC&, D(:2E .), :.D(: *+(-$ F20 -.; /&C8* :&G( *2 1.:10:.*( *+( 2C,(C(, 9.&C8 08&)B . *.D:( 2/ '.:0(8 .8 &),&1.*(, D(:2E$ 7C&1(
3, 4 #55 – 67 38 4 <=5 > ?7
DA H8&)B .:B(DC.I /&), *+( (J0&:&DC&0- 9C&1( .), J0.)*&*; &-9:&(, D; *+( &)*(C8(1*&2) 2/ *+( *E2 /0)1*&2)8$ K+(1G *+.* &* .BC((8 E&*+ what is suggested by your graph from part ‘a’.
? 1A H8&)B B(2-(*C; L.), C(-(-D(C&)B *+.* *+( .C(. 2/ . *C&.)B:( &8 1.:10:.*(, .112C,&)B *2 *+( /2C-0:. M 4 N D O +A 1.:10:.*( *+( 12)80-(C .), 9C2,01(C 80C9:08 ()P2;(, .* *+&8 (J0&:&DC&092&)*$
,A H8&)B .:B(DC.I 1.:10:.*( *+( J0.)*&*; ,(-.),(, .), *+( J0.)*&*; 8099:&(, .* . 9C&1( 2/ Q65$ R20:, *+(C( D( (S1(88 ,(-.), 2C (S1(88 8099:; .* *+&8 9C&1( .), 2/ +2E -.); 0)&*8T
(A U08* D; :22G&)B .* *+( /0)1*&2)8 (S9C(88(, .:B(DC.&1.::;I +2E 1.) ;20 *(:: +2E -.); 0)&*8 9(29:( E20:, E.)* *2 D0; .* . 9C&1( 2/ V(C2T W2E 1.) ;20 *(:: .* E+&1+ 9C&1( 8(::(C8 E&:: D(B&) *2 DC&)B *+( B22, *2 -.CG(*T
/A X/ D0;(C8 80,,():; D(B.) D0;&)B -.); -2C( .,,&*&2).: 0)&*8 ('(C; *&-( *+( 9C&1( ,C299(, D; Q#I +2E E20:, ;20 (S9(1* *+( ,(-.), /0)1*&2) *2 1+.)B(T K2)'(C8(:;I &/ 8(::(C8 80,,():; D(B.) 8099:;&)B -.); -2C( .,,&*&2).: 0)&*8 ('(C; *&-( *+( 9C&1( C28( D; Q#I +2E E20:, ;20 (S9(1* *+( 8099:; /0)1*&2) *2 1+.)B(T YS9:.&) ;20C .)8E(C8$
= 6$
%&'() *+( 8.-( :&)(.C ,(-.), .), 8099:; /0)1*&2)8 .8 E(C( 08(, &) J0(8*&2) #@ .A M99:; . Q= 9(C 0)&* 89(1&/&1 &),&C(1* *.S *2 *+( B22, .), 9:2* *+( C(80:*.)* 8099:; .), ,(-.), 10C'(8 2) *+( BC&, D(:2E@
DA Z22G&)B .* *+( ,&.BC.-I E+.* +.8 D(() *+( &-9.1* 2/ *+( *.S 2) *+( (J0&:&DC&0- -.CG(* 9C&1( .), J0.)*&*; 82:, .8 12-9.C(, *2 *+( 8&*0.*&2) E&*+20* *+( *.S :22G(, .* &) J0(8*&2) #T Y8*&-.*( *+( )(E (J0&:&DC&0- 9C&1( .), J0.)*&*; *2 *+( )(.C(8* E+2:( 0)&*$
1A K.:10:.*( *+( 12)80-(C .), 9C2,01(C 80C9:08 .8821&.*(, E&*+ *+&8 )(E 928*<*.S (J0&:&DC&092&)* .8 E(:: .8 *+( C('()0( B.&)(, D; *+( B2'(C)-()* *+C20B+ *+( &-928&*&2) 2/ *+( *.S$ K2-9.C&)B *+( 80- 2/ *+(8( *+C(( .-20)*8 *2 *+( 80- 2/ *+( 12)80-(C .), 9C2,01(C 80C9:08 associated with the equilibrium point in question 1 ‘c’ above, which is greater? What then has
D(() *+( &-9.1* 2/ *+( *.S 2) 2'(C.:: E(:/.C(T
[ ,A K.:10:.*( .), 12-9.C( 12)80-(C (S9(),&*0C( .), 9C2,01(C C('()0( D(/2C( *+( *.S E.8 .99:&(, *2 12)80-(C (S9(),&*0C( .), 9C2,01(C C('()0( ./*(C *+( *.S E.8 .99:&(,$ R+.* E.8 *+( &-9.1* 2/ *+( *.S 2) (.1+T
(A K2-9.C&)B *+( &)&*&.: (J0&:&DC&0- 9C&1( /C2- 3# E&*+ *+( 928*<*.S (J0&:&DC&0- 9C&1( /C2- 9.C* ‘b’ above, +2E -01+ 2/ *+( Q= *.S +.8 D(() D2C)( D; 12)80-(C8T R+.* 92C*&2) *+(C(/2C( +.8 D(() D2C)( D; 9C2,01(C8T YS9:.&) E+; *+( &)1&,()1( 2/ *+( *.S &8 ,&//(C()* /2C 12)80-(C8 .), 9C2,01(C8 L2CI &) 2*+(C E2C,8I E+; *+( D0C,() 2/ *+( *.S +.8 D(() D2C)( 0)('():;A$
!$
%&'() *+( 8.-( :&)(.C ,(-.), .), 8099:; /0)1*&2)8 .8 E(C( 08(, &) J0(8*&2) #@ .A M99:; . Q= 9(C 0)&* 89(1&/&1 &),&C(1* 80D8&,; *2 *+( B22, .), 9:2* *+( C(80:*.)* 8099:; .), ,(-.), 10C'(8 2) *+( BC&, D(:2E@
\ DA Z22G&)B .* *+( ,&.BC.-I E+.* +.8 D(() *+( &-9.1* 2/ *+( 80D8&,; 2) *+( (J0&:&DC&0- -.CG(* 9C&1( .), J0.)*&*; 82:, .8 12-9.C(, *2 *+( &)&*&.: 8&*0.*&2) :22G(, .* &) J0(8*&2) #T
1A K.:10:.*( *+( 12)80-(C .), 9C2,01(C 80C9:08 .8821&.*(, E&*+ *+&8 )(E 928*<80D8&,; (J0&:&DC&0- 92&)* .8 E(:: .8 *+( -2)(; 89()* D; *+( B2'(C)-()* *2 9.; /2C *+( 80D8&,;$ K2-9.C( *+( 80- 2/ *+( 12)80-(C .), 9C2,01(C 80C9:08 *2 *+( *2*.: E(:/.C( .8821&.*(, E&*+ *+( (J0&:&DC&0- 92&)* &) Juestion 1 ‘c’. What +.8 D(() *+( &-9.1* 2/ *+( 80D8&,; 2) 2'(C.:: E(:/.C(T
,A M/*(C -.G&)B *+( )(1(88.C; 1.:10:.*&2)8I 12-9.C( 12)80-(C (S9(),&*0C(8 .), 9C2,01(C C('()0(8 D(/2C( *+( 80D8&,; E.8 .99:&(, *2 12)80-(C (S9(),&*0C(8 .), 9C2,01(C C('()0(8 ./*(C *+( 80D8&,; E.8 .99:&(,$ R+.* &8 *+( &-9.1* 2/ *+( 80D8&,; 2) (.1+T
(A K2-9.C&)B *+( &)&*&.: (J0&:&DC&0- 9C&1( /C2- 3# E&*+ *+( 928*<80D8&,; (J0&:&DC&0- 9C&1( /C2part ‘b’ .D2'(I +2E -01+ 2/ *+( Q= 80D8&,; +.8 D(() *C.)8/(CC(, *2 12)80-(C8T R+.* 92C*&2) *+(C(/2C( +.8 D(() *C.)8/(CC(, *2 9C2,01(C8T YS9:.&) E+; *+( &)1&,()1( 2/ *+( 80D8&,; &8 ,&//(C()* /2C 12)80-(C8 .), 9C2,01(C8 L2CI &) 2*+(C E2C,8I E+; *+( D()(/&*8 2/ *+( 80D8&,; +.'( D(() ,&8*C&D0*(, 0)('():;A$
] ?$
%&'() *+( ,(-.), /0)1*&2) 3, 4 655 – !57 .), *+( 8099:; /0)1*&2) 38 4 <=5 > 657@ .A 7:2* *+( /0)1*&2)8 2) *+( BC&, D(:2E .), :.D(: *+(-$ F20 -.; :&G( *2 /&C8* 1.:10:.*( *+( 2C,(C(, 9.&C8 08&)B . *.D:( 2/ '.:0(8 .8 &),&1.*(, D(:2E$ 7C&1(
3, 4 655 – !57
38 4 <=5 > 657
DA H8&)B .:B(DC.I /&), *+( (J0&:&DC&0- 9C&1( .), J0.)*&*; &-9:&(, D; *+( &)*(C8(1*&2) 2/ *+( *E2 functions. Check that it agrees with what is suggested by your graph from part ‘a’.
^ 1A H8&)B B(2-(*C; L.), C(-(-D(C&)B *+.* *+( .C(. 2/ . *C&.)B:( &8 1.:10:.*(, .112C,&)B *2 *+( /2C-0:. M 4 N D O +A 1.:10:.*( *+( 12)80-(C .), 9C2,01(C 80C9:08 ()P2;(, .* *+&8 (J0&:&DC&092&)*$
,A X/ *+( B2'(C)-()* E(C( *2 &-928( . /:22C 9C&1( 2/ Q[I E20:, *+(C( D( . 8+2C*.B( 2C 80C9:08 &) C(892)8( .), 2/ +2E -.); 0)&*8T
(A K2-9.C( 9C2,01(C C('()0( .), 12)80-(C (S9(),&*0C( &) *+&8 8&*0.*&2) L*+( Q[ 9C&1( /:22CA E&*+ 9C2,01(C C('()0( .), 12)80-(C (S9(),&*0C( &) *+( &)&*&.: 8&*0.*&2) E&*+20* *+( 9C&1( /:22C$ K2)8&,(C 2):; *+( 0)&*8 *+.* .C( .1*0.::; 82:, D; 9C2,01(C8 *2 12)80-(C8$
/A X/ *+( B2'(C)-()* E(C( *2 12--&* *2 D0;&)B *+( 80C9:08 9C2,01*&2) .* *+( 9C&1( *+(; +.'( -.),.*(,I +2E -01+ E20:, *+(; +.'( *2 89(),T
BA X/ &)8*(., *+( B2'(C)-()* E(C( *2 &-928( . 9C&1( 1(&:&)B 2/ Q?I E20:, *+(C( D( . 8+2C*.B( 2C . 80C9:08 &) C(892)8( .), 2/ +2E -.); 0)&*8T
#5 +A K2-9.C( *+( 9C2,01(C C('()0( .), 12)80-(C (S9(),&*0C( &) *+&8 8&*0.*&2) L*+( Q? 9C&1( 1(&:&)BA E&*+ *+( 9C2,01(C C('()0( .), 12)80-(C (S9(),&*0C( &) *+( &)&*&.: 8&*0.*&2) E&*+20* *+( 9C&1( 1(&:&)B$ K2)8&,(C 2):; *+( 0)&*8 *+.* .C( .1*0.::; 82:, D; 9C2,01(C8 *2 12)80-(C8$
&A K.:10:.*( *+( 12)80-(C .), 9C2,01(C 80C9:08 ()P2;(, 0),(C *+( Q? 9C&1( 1(&:&)B .), 12-9.C( &* *2 *+( consumer and producer surplus enjoyed in the initial situation set out in part ‘c’. Has *+( 9C&1( 1(&:&)B *C.)8/(CC(, 82-( 80C9:08 /C2- 9C2,01(C8 *2 12)80-(C8 .), &/ 82I +2E -01+T W.8 82-( E(:/.C( 8&-9:; D(() :28*T X/ 82I (S9:.&) ;20C .)8E(C .), 1.:10:.*( *+( (S*()* 2/ *+( E(:/.C( :288$ F20 -.; E&8+ *2 08( *+( BC&, D(:2E *2 ,C.E *+( ,(-.), .), 8099:; /0)1*&2)8 .), *+( 9C&1( 1(&:&)B *2 +(:9 ;20 .)8E(C *+( J0(8*&2)$
