Cash-back offer from May 27th to 30th, 2024: Get a flat 10% cash-back credited to your account for a minimum transaction of $50.Post Your Questions Today!

Question DetailsNormal
$ 25.00

ECON 213 PROBLEM SET 2 | Complete Solution

Question posted by
Online Tutor Profile

Problem Set 2

Name: __________________________________________


Problem Set 2 is to be completed by 11:59 p.m. (ET) on Monday of Module/Week 4.


  1. The following table presents data for wages in the market for internet security professionals.

(HINT: in the labor market the roles are reversed. Those who want to hire labor are the demanders. The workers enter the work force providing labor to the market place so they are the suppliers.)


Quantity Demanded

Quantity Supplied

















What is the equilibrium wage? ___________________________________

Now, consider this scenario: Due to an increase in the internet security threats, the government wants to apply a price control in this market to encourage more people to become internet security professionals. Assume that a wage control is set at $75,000. Will this increase the number of people entering this labor market? Why or why not? Will this increase the number of people hired? Why or why not?


  1. Assume you are a policymaker in Washington DC. Lobbyists for the preschoolers of America have put pressure on their representatives to cap prices on graham crackers. You have been assigned a position on a new committee to study the impact of a price ceiling on graham crackers.


Your job is to:

  1. Illustrate using a fully labeled supply and demand graph (label all the axes and any lines you put in your graph) what such an artificial price looks like.
  2. Explain what the results of such a move are for the graham cracker market. In other words, will there be a SHORTAGE, a SURPLUS, or neither created? Why?



  1. Pollution is considered by most a negative externality. Some economists would like to see the costs of these burdens incorporated into the price of goods that we buy. For instance, since coal fire power plants increase emissions that could potentially lead to climate change, these economists believe that the price we pay for electricity is not adequately high enough. Draw a completely labeled graph and illustrate on the graph how much higher electricity prices would be if the full costs of electricity production were taken into account. You do not need to provide actual numbers; rather, show on the price axis where the price would be before the externality is considered and the price after the externality is included. What problems might exist in determining this new, externality based, price?


  1. In the old days lighthouses were built along the coast to prevent ships from running aground on rocks in unfamiliar ports. By shining a beam of light over a port and guiding ships away from rocks, these vital buildings reduced the risk for ship captains and were generally considered to be extremely valuable resources. Curiously, lighthouses were almost always run and maintained by local governments. Explain in economic terms why private firms would not run a lighthouse.


Available Answer
$ 25.00

[Solved] ECON 213 PROBLEM SET 2 | Complete Solution

  • This Solution has been Purchased 2 time
  • Submitted On 16 Apr, 2015 08:34:18
Answer posted by
Online Tutor Profile
Lobbyists will want lower prices for crackers so that they are cheaper and more affordable by kids. A price cap is a maximum price that can be charged for the crackers. Since the free market charges P*, the cap must be less than fre...
Buy now to view the complete solution
Other Similar Questions
User Profile

ECON 213 Problem Set ch. 9 Liberty University Complete Answers

01Question The total cost of Mr. Plow, a snow-removal business, is given in the table below. What is the total profit of cleaning five driveways if the price Mr. Plow can charge is $10 per driveway? -1 E...
User Profile

ECON 213 InQuizitive ch. 13 Liberty University Complete Answers

Apply the correct label to each network externality or externality-related effect. In order to use a different cable provider, Amalia must pay to install new equipment in her home. Everyone at Ricardo’s school uses metal ...
User Profile

ECON 213 InQuizitive ch. 12 Liberty University Complete Answers

In the short run, low barriers to entry and exit allow new entrants into a monopolistically competitive market. What are the characteristics of monopolistic competition? Many different firms Product differentiation Low b...
User Profile


1 b.) PRICE: ____45.00_________ QUANTITY: _______7________ Please find the solution attached. Thank you....
User Profile


A.) What is the equilibrium wage? $ 60,000 b.) Will this increase the number of people entering this labor market? Why or why not? Since the wage control set is above the equilibrium wage of $ 60,000, the number of people en...

The benefits of buying study notes from CourseMerits

Assurance Of Timely Delivery
We value your patience, and to ensure you always receive your homework help within the promised time, our dedicated team of tutors begins their work as soon as the request arrives.
Best Price In The Market
All the services that are available on our page cost only a nominal amount of money. In fact, the prices are lower than the industry standards. You can always expect value for money from us.
Uninterrupted 24/7 Support
Our customer support wing remains online 24x7 to provide you seamless assistance. Also, when you post a query or a request here, you can expect an immediate response from our side.

$ 629.35