1. Consider the market for bananas at a local produce store. The manager has data on how much consumers will demand and how much his distributors will supply at various prices. (I have answered it plz correct my answer and rectify ). What is the market clearing price and quantity? How did you arrive at that result?

The Market for Bananas
Price	Supply	Demand
50	100	35
45	90	40
40	80	45
35	70	40
30	60	55
25	50	50
20	40	55
15	30	60
10	20	75
5	10	80

2. Now consider the market for three kinds of chocolate at a candy store. The manager has data on how much consumers will demand and how much his distributors will supply for three different market segments: Premium, Generic, and Every Day.

What is the market clearing price and quantity for each segment? How did you arrive at that result?

Premium Chocolate
Price	Supply	Demand
2	300	5
1.75	100	10
1.5	80	20
1.25	70	50
1	30	100
0.75	0	200
0.5	0	20,000
0.25	0	40,000

Generic/Store Chocolate
Price	Supply	Demand
2	100	0
1.75	90	0
1.5	50	0
1.25	40	0
1	30	5
0.75	20	10
0.5	10	100
0.25	0	10,000

Every Day Chocolate
Price	Supply	Demand
2	200	0
1.75	70	0
1.5	30	0
1.25	20	0
1	10	0
0.75	0	100
0.5	0	1,000
0.25	0	20,000

3. A state government is issuing tax-free bonds to finance the building of a new bridge. The government will issue 10,000 bonds at an auction. The government will take the highest bid, the next highest, and so on until all the bonds are sold. Every winner pays the lowest price.

What is the market clearing price and quantity? How did you arrive at that result?

Bonds
Price	Supply	Demand
101	10,000	100
100.5	10,000	500
100	10,000	4,500
99.5	10,000	4,900
99	10,000	6,100
98.5	10,000	10,000

Answer rating: 100% (QA)

Number 1 All things unchanged the demand of bananas is determined by how much customers are willing and able to pay at the price listed Based on the data when the bananas were priced at 5 customers de... View the full answer