homework help thread

Discussion in 'Staging Area' started by bal1, Dec 17, 2012.

  1. bal1

    bal1 New Member

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    I find I get on this forum while I need to do my homework, I'm sure I'm not the only user that does this so a think a public homework thread would help. Ask any questions homework related.
    Enjoy.
     
  2. Knief

    Knief Moderator Staff Member

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    Ann Arbor
    Yay! Now I get to yell at people who are dumb about math and gear! Who's the first victim?
     

  3. BRTSoloWing

    BRTSoloWing Active Member

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    China Grove
    I got it, I got it, 2+2=22 x2=2222
     
  4. Coxinabox

    Coxinabox New Member

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    I guess google won't cut it for some people.
     
  5. Leonidas

    Leonidas New Member

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    Des Moines
    Well, here you can ask specific questions.
     
  6. osawaab

    osawaab Active Member Supporting Member

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    Charlotte and or A galaxy far, far away
    2.4+2.4=4.8

    Now round

    2+2=5.

    Edit: sorry just joking around our math teacher showed us this today, i don't know how this relates to algebra 2 but i thought it was funny. In all seriousness I think this is a great idea for a thread and would be willing to help with anything to the best of my ability.
    Strong points:
    Math ( to a degree)
    Science
    Technical

    Weakness english ( why I'm taking AP english... Ill never know)
     
    Last edited: Dec 17, 2012
  7. Leonidas

    Leonidas New Member

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    Des Moines
    Makes sense, very much sense. What's the point of this...
     
  8. Polanski27

    Polanski27 New Member

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    Kitchener
    I don't see why people are trolling on this thread. I think it is a good idea. Would I use it? Maybe not, but I guess we will see. Would I help out people that needed it? If I knew the answer, yes.
     
  9. Knief

    Knief Moderator Staff Member

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    Alright, I tell you what, I don't need help with this problem set, but I'll post a legitimate question to get us started. This is an introduction to applied economics course. It's not terribly difficult stuff. Let's see who can get the correct answer. Look up the basic procedures for the problem if you must, but please do not Google for the answer (I don't know if it's even out there). You can skip the intro in green if you want, there's no real data in it, just context.

    1. It Goes Better with Wine! (30 points)

    Wine production is a very competitive industry. According to U.S. government figures, there are currently more than 2,000 licensed wineries operating in 48 U.S. states, with more than 847 commercial wineries in California alone. The U.S. also imports wines from all over the world, but especially from Italy, France, Spain, Australia and Chile. Although high-end purveyors of rare or exclusive vintages have some power to set price, competition is intense among producers of common variety table wines – by far the biggest segment of the market – leaving wineries in this segment basically no control over price.

    While production and distribution at the national level are highly competitive, many states, including Michigan, limit importation and sale of wine within their borders to state-licensed distributors and retailers, prohibiting out-of-state wineries and distributors from selling and shipping wine directly to consumers. A March 2002 study published by the Progressive Policy Institute makes the case for repealing these laws and allowing consumers to purchase wine via the Internet: “Purchasing wine over the Internet can let customers expand their selection from the choices offered by local retail wine outlets to hundreds, if not thousands, of vineyards. Because consumers can buy direct, avoiding the markups charged by wholesalers and retailers, direct shipments can also be cheaper.”

    For the purposes of this question, we will consider Michigan demand and supply for “average table wine,” assumed to be a homogeneous good trading at one price. Also, note that when we speak of producer surplus in this setting, we refer to surplus earned by Michigan distributors and local wineries. Consumer surplus refers to surplus earned by Michigan consumers.


    In the following equations, P denotes Price and Q denotes quantity.

    a) (10 points) Demand for wine in Michigan is P = 56 – Q. The short-run supply of wine to Michigan consumers through the current distribution system (with no direct sales or “imports” via the Internet allowed) is P = 14 + Q. Here, P is the price per gallon and Q is measured in millions of gallons. Calculate the market equilibrium price and quantity of wine sold in Michigan under the current law where “imports” of wine from out-of-state are completely banned. What is consumer surplus and producer surplus in this Michigan market for wine? Show your work and summarize your answers in the box. Illustrate your answer using a graph.

    Equilibrium Price:
    Equilibrium Quantity:
    Producer Surplus:
    Consumer Surplus:

    b) (10 points) In August 2003 the 6th Circuit Court of Appeals ruled that Michigan’s ban on direct-to-consumer wine shipments is unconstitutional, paving the way for Michigan residents to begin ordering wines directly from out-of-state producers. On average, the price of wine shipped directly to consumers is $30 per gallon (including shipping charges). Given that Michigan is only a small portion of the entire market for wine in the U.S., consumers in Michigan can buy as much “imported” wine as they choose at this price.

    If this court’s decision stands and the ban on ordering wine from out of state is lifted (allowing “free trade”) what will be the new equilibrium price and quantity of wine purchased by Michigan residents? How many gallons of wine will Michigan consumers buy directly from out-of-state wineries? What is Michigan producer surplus? (Note that the Michigan demand and supply curves remain the same as above.) Show you work and summarize your answers in the box. Illustrate your answer using a graph.

    Equilibrium Price:
    Equilibrium Quantity:
    Producer Surplus:
    Quantity Imported:

    c) (5 points) Using your calculations from parts (a) and (b), what is the annual deadweight loss to Michigan from having out-of-state wine sales banned, compared to free trade? Explain.



    d) (5 points) Using your calculations from parts (a) and (b), up to how much money are Michigan wineries and distributors likely to be willing to spend (in lobbying and other rent-seeking activities) to try to get this court decision overturned? Explain.
     
    Last edited: Dec 17, 2012
  10. BRTSoloWing

    BRTSoloWing Active Member

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    China Grove
    I apologize about my post, I though it would be funny. But this is a good idea. And I'm willing to help if I can.

    Edit: *slams head on desk* I'm no help here. I struggle with word problems.
     
    Last edited: Dec 17, 2012
  11. Leonidas

    Leonidas New Member

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    Des Moines
    Uhm Knief....... I uhm..
     
  12. Knief

    Knief Moderator Staff Member

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    Ann Arbor
    Alright, I'll give you a hint to get you started. You're given two equations, one for a supply curve and one for a demand curve. These represent the number of bottles of wine the producer is willing to make at a given price (i.e. if bottles are selling at $10, the equation tells you how many bottles the producer will produce) and the number of bottles the consumer is willing to buy at a given price (i.e. if bottles are selling for $10, the equation tells you how many bottles the consumers will buy). The market equilibrium price and quantity are the price and quantity sold where the producers are making the same number of bottles that the consumers are willing to buy at a given price. Producing rough graphs of the problem is one of the most helpful ways to solve these, especially when you're first getting started. Don't worry about getting the slope right, just mark the X and Y intercepts for each curve. Go from there.
     
  13. Leonidas

    Leonidas New Member

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    Des Moines
    Yeah I know what you mean. I'll stop posting on here for awhile.
     

    Attached Files:

  14. Knief

    Knief Moderator Staff Member

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    Ann Arbor
    Okay, allow me to rephrase my hint. Two two variable equations fall in your lap. There's really only one thing you can do with them. Do that.
     
  15. Leonidas

    Leonidas New Member

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    Des Moines
    You know what? Mkay, so there's a wine problem in Michigan. Buy wine before it gets banned?
     
  16. Knief

    Knief Moderator Staff Member

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    Ann Arbor
    Let this be a lesson to people with real homework problems. Wait for somebody who isn't Leonidas to answer.
     
  17. JakeBworth

    JakeBworth New Member

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    Hoboville
    I've taken some Econ courses recently, I'll give your problem a go.
     
  18. BRTSoloWing

    BRTSoloWing Active Member

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    China Grove
    I tryed plug and play, and I think I failed. So we are looking for P=56-Q and P=14+Q right?
     
  19. BRTSoloWing

    BRTSoloWing Active Member

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    China Grove
    Edit.
    So Q=16,000,000 for the first one? That don't look right at all
    And the second one would be Q=24,000,000?
    Oops ment to edit, not quote
     
    Last edited: Dec 17, 2012
  20. Knief

    Knief Moderator Staff Member

    13,850
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    Ann Arbor
    That would be the best way to start the problem to find equilibrium price and quantity. You'll probably want to graph the supply and demand curves to answer the surplus part of the first question. The real fun of it though starts with the import ban is removed.

    [edit] Yep, that's the equilibrium quantity. Keep going.