excel econ assignment

Step

Instructions

Points Possible

1

Start Excel. Download and open the workbook named: Chapter_2_Market_Efficiency_Problem_Start.

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2

In cells D10-D11 and G10-G11, by using cell references, enter the coefficients for the market demand and market supply functions. Refer to appropriate cells among G5-G6 and I5-I6. Note: Enter the coefficient as a negative value if required.

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3

In cells D14-E20, do the following: In cell D14, by using relative and absolute cell references, calculate the quantity demanded corresponding to the price in cell C14. Use cells D10-D11 and C14. Copy the formula from cell D14 down the column to cell D20. In cell E14, by using relative and absolute cell references, calculate the quantity supplied corresponding to the price in cell C14. Use cells G10-G11 and C14. Copy the formula from cell E14 down the column to cell E20.

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In cell G21, by using a cell reference, determine the equilibrium price. Refer to an appropriate cell among C14-C20. In cell G22, by using a cell reference, determine the equilibrium quantity. Refer to an appropriate cell among D14-E20.

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5

In cell E25, by using cell references, calculate the market quantity corresponding to the price in cell E24. Use the Excel MIN function and cells D14-E14.

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6

In cells E26, G26, and J26, do the following: In cell G26, by using cell references, calculate the consumer surplus corresponding to the price in cell E24 and the quantity in cell E25. Use cells D10-D11 and E24-E25. In cell J26, by using cell references, calculate the consumer surplus corresponding to the price in cell G21 and the quantity in cell G22. Use cells D10-D11 and G21-G22. In cell E26, determine what happens to consumer surplus when the price increases from $3 to the equilibrium.

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7

In cells E27, G27, and J27, do the following: In cell G27, by using cell references, calculate the producer surplus corresponding to the price in cell E24 and the quantity in cell E25. Use cells E24 and E25. In cell J27, by using cell references, calculate the producer surplus corresponding to the price in cell G21 and the quantity in cell G22. Use cells G21 and G22. In cell E27, determine what happens to producer surplus when the price increases from $3 to the equilibrium.

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8

In cells E28, G28, and J28, do the following: In cell G28, by using cell references, calculate the total surplus corresponding to the price in cell E24 and the quantity in cell E25. Use cells G26 and G27. In cell J28, by using cell references, calculate the total surplus corresponding to the price in cell G21 and the quantity in cell G22. Use cells J26 and J27. In cell E28, determine what happens to total surplus when the price increases from $3 to the equilibrium.

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9

In cell D32, by using cell references, calculate the price increased from the equilibrium by $0.25. Use cells G21 and E30. In cell D33, by using cell references, calculate the price increased from the price in cell D32 by $0.25. Use cells E30 and D32.

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10

In cell E32, by using relative and absolute cell references, calculate the quantity demanded corresponding to the price in cell D32. Use cells D10-D11 and D32. Copy the formula from cell E32 down the column to cell E33.

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11

In cell F32, by using relative and absolute cell references, calculate the quantity supplied corresponding to the price in cell D32. Use cells G10-G11 and D32. Copy the formula from cell F32 down the column to cell F33.

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12

In cell G32, by using cell references, calculate the market quantity corresponding to the price in cell D32. Use the Excel MIN function and cells E32-F32. Copy the formula from cell G32 down the column to cell G33.

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13

In cell H32, by using relative and absolute cell references, calculate the consumer surplus corresponding to the price in cell D32 and the quantity in cell G32. Use cells D10-D11, D32, and G32. Copy the formula from cell H32 down the column to cell H33.

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14

In cell I32, by using relative and absolute cell references, calculate the producer surplus corresponding to the price in cell D32 and the quantity in cell G32. Use cells G11, D32, and G32. Copy the formula from cell I32 down the column to cell I33.

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15

In cell J32, by using cell references, calculate the total surplus corresponding to the price in cell D32 and the quantity in cell G32. Use cells H32 and I32. Copy the formula from cell J32 down the column to cell J33.

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16

In cells E34, H34, E35, and H35, determine what happens to consumer surplus, producer surplus, market quantity, and total surplus, respectively, when the price increases above the equilibrium.

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17

In cells F37 and J37, determine the effect of changing the price away from the equilibrium on the market efficiency.

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18

Save the workbook. Close the workbook and then exit Excel. Submit the workbook as directed.

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Total Points

24