Please answer questions 5 and 6.

Name: Homework #5 Due: Wed, Mar 31, 2:00pm Read the directions carefully and answer all parts of each question. Write neatly; if I can't read it, it will be counted wrong. You may work in groups, but you must submit your own solution. Any submissions that are word-for-word identical will receive a score of O. No late homework will be accepted under any circumstances. For all questions, refer to the graph on the reverse side. The graph represents the market for coffee. Estimation may be necessary, so show work. 1. Suppose Pritzker gives a $5 subsidy to coffee buyers. Calculate the Pe, Qe, Pb, Ps, CS, PS, RM, and DWL. (8 pts.) 2. Who is more responsive to price changes, buyers or sellers? Show work. (4 pts.) 3. Assuming the market outcome, and a world price of $6.50 calculate the following: (10 pts.) a. Price b. Q. dom c. Qdom e. d. Imports or exports Consumer surplus f. Producer surplus Resource misallocation h. Deadweight loss 4. Redo all parts of #1 assuming a world price of $3.50. (10 pts.) 5. Redo all parts of #1 assuming a world price of $3.50 and a tariff of $0.50. (15 pts.) 6. Redo all parts of #1 assuming a world price of $3.50 and a quota of 60. (15 pts.) Name: Homework #5 Due: Wed, Mar 31, 2:00pm Price Supply 7.00 5.00 3.00 Demand 2.00 1.00 0.50 10 20 30 40 60 80 100 140 Quantity Name: Homework #5 Due: Wed, Mar 31, 2:00pm Read the directions carefully and answer all parts of each question. Write neatly; if I can't read it, it will be counted wrong. You may work in groups, but you must submit your own solution. Any submissions that are word-for-word identical will receive a score of O. No late homework will be accepted under any circumstances. For all questions, refer to the graph on the reverse side. The graph represents the market for coffee. Estimation may be necessary, so show work. 1. Suppose Pritzker gives a $5 subsidy to coffee buyers. Calculate the Pe, Qe, Pb, Ps, CS, PS, RM, and DWL. (8 pts.) 2. Who is more responsive to price changes, buyers or sellers? Show work. (4 pts.) 3. Assuming the market outcome, and a world price of $6.50 calculate the following: (10 pts.) a. Price b. Q. dom c. Qdom e. d. Imports or exports Consumer surplus f. Producer surplus Resource misallocation h. Deadweight loss 4. Redo all parts of #1 assuming a world price of $3.50. (10 pts.) 5. Redo all parts of #1 assuming a world price of $3.50 and a tariff of $0.50. (15 pts.) 6. Redo all parts of #1 assuming a world price of $3.50 and a quota of 60. (15 pts.) Name: Homework #5 Due: Wed, Mar 31, 2:00pm Price Supply 7.00 5.00 3.00 Demand 2.00 1.00 0.50 10 20 30 40 60 80 100 140 Quantity