-The table gives the demand and supply schedules for ice cream in Sweetsville in July and November. Assume that the only people who benefit from ice cream are the people who consume it and the only people who bear the cost of ice cream are the people who produce it.
a) Draw the market demand and market supply curves. What are the equilibrium price and equilibrium quantity of ice cream in July and November? Is the allocation of resources efficient in July? Is it efficient in November? Explain.
b) What is the maximum price that consumers are willing to pay for the 100th gallon of ice cream in July? In November? What is the minimum price that producers are willing to accept for the 100th gallon in July and November? Explain.
c) What happens to consumer surplus and producer surplus in November compared to July? Why?
Definitions:
\(- 1\)
Represents a negative unit value in mathematics, often used to indicate the opposite or additive inverse of a positive value.
\(- 1\)
A numeric value that is one less than zero, often representing the inverse of a quantity.
\(n + 7\)
An algebraic expression representing the sum of an unknown quantity \(n\) and the number 7.
\(n + 8\)
An algebraic expression representing the sum of a variable n and the number 8.
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