North America. Furthermore assume one of the shows will take place in Vancouver Suppose Mr. Beast...

 

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North America. Furthermore assume one of the shows will take place in Vancouver Suppose Mr. Beast is touring/putting on a show at various venues across in May 2024. The hypothetical event will be held at BC Place in front of a sold out crowd (54,000 seats). Suppose there are two types of Mr. Beast fans: fanatical Mr. Beast fans and the average Mr. Beast fans. As the event is attracting a large crowd, a large number of food vendors will be just outside BC place selling quick meals. The crowds will have a market demand for meals that will depend on the type of fan. Suppose the demand for each Fanatical Mr. Beast fan is: encl q=1 -XP 28 (d) ave The demand for each Average Mr. Beast fan is: 1 9A = 1 - XP-bre 28 - A 20 boog banush lanbiv to dosole a As the number of food vendors is large we will model this as a perfectly competitive market with quick meals being identical. This means we can use the market supply curve. Suppose the supply curve is: QS = -18,750 + 3,750 × P Use the information above to answer the questions below: (a) (3 marks) Find the aggregate demand curve for quick meals given there are 14,000 Fanatical Mr. Beast fans and 40,000 Average Mr. Beast fans attending the tour. (b) (4 marks) What is the equilibrium outcome of the market? What is the producer surplus and what is the consumer surplus? (c) (5 marks) Create a graph of the supply and demand with the equilibrium and surpluses labeled. Be sure to properly label all parts of the graph including both the x and y axis. (d) (3 marks) Suppose the government imposed a tax driving the price of a quick meal up to $12.90 and the tax incidence on consumers is 60%. What is the value of the per unit tax? What's the government revenue? How large of a deadweigh loss would exist? North America. Furthermore assume one of the shows will take place in Vancouver Suppose Mr. Beast is touring/putting on a show at various venues across in May 2024. The hypothetical event will be held at BC Place in front of a sold out crowd (54,000 seats). Suppose there are two types of Mr. Beast fans: fanatical Mr. Beast fans and the average Mr. Beast fans. As the event is attracting a large crowd, a large number of food vendors will be just outside BC place selling quick meals. The crowds will have a market demand for meals that will depend on the type of fan. Suppose the demand for each Fanatical Mr. Beast fan is: encl q=1 -XP 28 (d) ave The demand for each Average Mr. Beast fan is: 1 9A = 1 - XP-bre 28 - A 20 boog banush lanbiv to dosole a As the number of food vendors is large we will model this as a perfectly competitive market with quick meals being identical. This means we can use the market supply curve. Suppose the supply curve is: QS = -18,750 + 3,750 × P Use the information above to answer the questions below: (a) (3 marks) Find the aggregate demand curve for quick meals given there are 14,000 Fanatical Mr. Beast fans and 40,000 Average Mr. Beast fans attending the tour. (b) (4 marks) What is the equilibrium outcome of the market? What is the producer surplus and what is the consumer surplus? (c) (5 marks) Create a graph of the supply and demand with the equilibrium and surpluses labeled. Be sure to properly label all parts of the graph including both the x and y axis. (d) (3 marks) Suppose the government imposed a tax driving the price of a quick meal up to $12.90 and the tax incidence on consumers is 60%. What is the value of the per unit tax? What's the government revenue? How large of a deadweigh loss would exist?

Answer rating: 100% (QA)

Demand curves for two types of Mr Beast fans fanatical fans and average fans The demand curves are downwardsloping indicating that as the price of quick meals increases the quantity demanded by each t... View the full answer