Suppose it is a hot summet. Jane just bought a five bedroom apartment and would like...

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Suppose it is a hot summet. Jane just bought a five bedroom apartment and would like to install air condition (AC) for each room. Here is the value she places on the AC (including installment fee) for her five rooms (assume the rooms are homogeneous): Value of first AC Value of second AC Value of third AC Value of fourth AC Value of fifth AC 5000 (yuan) 4000 3000 2000 1000 From this information, derive her demand schedule and graph her demand curve for AC installment. . If the price of each unit of AC is 5000 (yuan), how many units of AC does Jane would like to install? How much consumer surplus (CS) does Jane get from her purchases? Please show her cosumer surplus in your graph. Suppose the cost falls to 2000 (yuan).how many units of AC docs Jane would like to install? How much consumer surplus docs Jane get from her purchases? Generally, when the cost of AC falls, how will the CS change and why? Suppose John owns a home appliance shop. Because AC installment is a labor-intensive practice, the cost of installing a unit of AC rises as he sells and installs more. Here is the cost he incurs to install each unit of AC: Value of first AC Value of second AC Value of third AC Value of fourth AC Value of fifth AC 1000 (yuan) 2000 3000 4000 5000 From this information. derive his supply schedule and graph his supply curve for AC installment. • If the market price of each unit of AC (including installment cost) is 5000 (yuan), how many units of AC does John would like to sell and install for Jane? How much producer surplus (PS) does John get from these sales? Please show his producer surplus in your graph. Suppose the price falls to 1000(yuan), how many units of AC does Jolin would like to sell and help install? How much producer surplus docs John get from these sales? . Please use Jane's demand schedule and John's supply schedule to find the market equilibrium price and quantity? Graph the market supply and demand curve (linear curve), and point out the equilibrium point. • What are consumer surplus, producer surplus, and total surplus in this equilibrium? Please show them in your graph. • Suppose this summer is the hottest on record, Jane's willinguess-to-pay for each AC increases 2000. Please find the new market equilibrium price and quantity? Graph the market supply and demand curve (linear curve), and point out the equilibrium point. What are consumer surplus, producer surplus, and total surplus in this equilibrium? Now suppose the summer is normal, and Jane's WTP for the AC remains the initial condition. Suppose the government tax the purchase of AC (carbon emission fee) and require appliance dealers to pay the government. 200 (yuan) for each AC sold. Graph the change of consumer surplus, producer surplus, and total surplus both before and after the tax, and finish the table (hint: check the slide of lecture3, for this question, there is no need to calculate the value): Suppose it is a hot summet. Jane just bought a five bedroom apartment and would like to install air condition (AC) for each room. Here is the value she places on the AC (including installment fee) for her five rooms (assume the rooms are homogeneous): Value of first AC Value of second AC Value of third AC Value of fourth AC Value of fifth AC 5000 (yuan) 4000 3000 2000 1000 From this information, derive her demand schedule and graph her demand curve for AC installment. . If the price of each unit of AC is 5000 (yuan), how many units of AC does Jane would like to install? How much consumer surplus (CS) does Jane get from her purchases? Please show her cosumer surplus in your graph. Suppose the cost falls to 2000 (yuan).how many units of AC docs Jane would like to install? How much consumer surplus docs Jane get from her purchases? Generally, when the cost of AC falls, how will the CS change and why? Suppose John owns a home appliance shop. Because AC installment is a labor-intensive practice, the cost of installing a unit of AC rises as he sells and installs more. Here is the cost he incurs to install each unit of AC: Value of first AC Value of second AC Value of third AC Value of fourth AC Value of fifth AC 1000 (yuan) 2000 3000 4000 5000 From this information. derive his supply schedule and graph his supply curve for AC installment. • If the market price of each unit of AC (including installment cost) is 5000 (yuan), how many units of AC does John would like to sell and install for Jane? How much producer surplus (PS) does John get from these sales? Please show his producer surplus in your graph. Suppose the price falls to 1000(yuan), how many units of AC does Jolin would like to sell and help install? How much producer surplus docs John get from these sales? . Please use Jane's demand schedule and John's supply schedule to find the market equilibrium price and quantity? Graph the market supply and demand curve (linear curve), and point out the equilibrium point. • What are consumer surplus, producer surplus, and total surplus in this equilibrium? Please show them in your graph. • Suppose this summer is the hottest on record, Jane's willinguess-to-pay for each AC increases 2000. Please find the new market equilibrium price and quantity? Graph the market supply and demand curve (linear curve), and point out the equilibrium point. What are consumer surplus, producer surplus, and total surplus in this equilibrium? Now suppose the summer is normal, and Jane's WTP for the AC remains the initial condition. Suppose the government tax the purchase of AC (carbon emission fee) and require appliance dealers to pay the government. 200 (yuan) for each AC sold. Graph the change of consumer surplus, producer surplus, and total surplus both before and after the tax, and finish the table (hint: check the slide of lecture3, for this question, there is no need to calculate the value):

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From this information derive his supply schedule and graph his supply curve for AC installment Supply Schedule Unit of ACCost of Installation yuan 11000 22000 33000 44000 55000 Supply Curve for AC Ins... View the full answer