Q1. Illustrates the market for chocolate bars has the following demand and supply
schedules: [1.5 Marks]
Price
Quantity Demanded
Quantity Supplied
$3
111
26
$4
100
53
$5
80
80
$6
64
92
$7
51
111
$8
37
120
Graph the demand and supply curves. What is the equilibrium price and quantity in this market?
If the actual price in this market were above the equilibrium price, what would
drive the market toward the equilibrium?
If the actual price in this market were below the equilibrium price, what would
drive the market toward the equilibrium?
Q2. Illustrates the market for pizza is characterized by a downward-sloping demand curve
and an upward-sloping supply curve. [1.5 Marks]
Kingdom of Saudi Arabia
Ministry of Education
Saudi Electronic University
المملكة العربية السعودية
وزارة التعليم
الجامعة السعودية الإلكترونية
College of Administrative and Financial Sciences
Draw the competitive market equilibrium. Label the price, quantity, consumer
surplus, and producer surplus. Is there any deadweight loss? Explain.
Suppose that the government forces each pizzeria to pay a $1 tax on each pizza sold. Illustrate the effect of this tax on the pizza market, being sure to label the consumer surplus, producer surplus, government revenue, and deadweight loss. How does each area compare to the pre-tax case?
If the tax were removed, pizza eaters and sellers would be better off, but the
government would lose tax revenue. Suppose that consumers and producers voluntarily transferred some of their gains to the government. Could all parties (including the government) be better off than they were with a tax? Explain using the labeled areas in your graph
Q3. Suppose that a market is described by the following supply and demand equations:
[2 Marks]
QS = 2P
QD = 300 – P
Solve for the equilibrium price and the equilibrium quantity.
Suppose that a tax of T is placed on buyers, so the new demand equation is
QD = 300 – (P + T).
Solve for the new equilibrium. What happens to the price received by sellers, the price paid by buyers, and the quantity sold?
Tax revenue is T X Q. Use your answer to part (b) to solve for tax revenue as a function of T. Graph this relationship for T between 0 and 300.
The deadweight loss of a tax is the area of the triangle between the supply and
demand curves. Recalling that the area of a triangle is 1 ⁄2 x base x height, solve for deadweight loss as a function of T. Graph this relationship for T between 0 and 300. (Hint: Looking sideways, the base of the deadweight loss triangle is T, and the height is the difference between the quantity sold with the tax and the quantity sold without the tax.)
The government now levies a tax on this good of $200 per unit. Is this a good
policy? Why or why not? Can you propose a better policy?
ments required for the event to operate safely, successfully and in line with legislation.
Discussion:
An event manager would use this document to ensure planning in terms of core infrastructure and operations were being adhered to, appropriate resources acquired to allow for full operation and contingency, relevant licensing and certification sought and acquired during the build phase. The document would be used during the event to ensure staff levels were appropriate for the suitably calculated capacities to enter and occupy the venue safely. It incorporates welfare planning for staff, contractors and members of the public including cleaning, catering and waste management. The document would be used as an overall guide to meeting the legislative requirements relevant to the type of event.
Live 8 Event Management Plan
Description:
This document provides the information required to effectively provide a command and control structure detailing the key personnel and there responsibilities as well as providing the limits of authority allowing for clear leadership across any potential occurrence within the venue. It also details how these positions change or move through different stages of the event.
Discussion:
This document allows the event manager to specifically delegate key tasks or area of responsibility to designated individuals, which in turn removes ambiguity limiting the occurrence of confusion within the command structure. This is of considerable importance during the event stage of the overall plan as the number of individuals the event management team is at its highest with the most responsibility and the least margin for error. The document also enables the relevant personnel to have a full and complete understanding of their role across a variety of sce