Question

C. Quantity supplied increases at P. D. Quantity supplied decreases at P. E. None of the above is correct Question 5-15 In the durian market, the demand curve is given by P = 22 - 20s and the supply curve is given by P = 20. + 6. Answer the following questions Question 5 What is the equilibrium price? The equilibrium price is $7.00. Question 6 What is the equilibrium quantity? The equilibrium quantity is 4. Question 7 What is the market price if the government imposes a price ceiling at $10.0? The market price is $10.00 Question 8 What is the market quantity if the government imposes a price ceiling at $20.07 The murder quantity 15 7 Question 9 What is the surplus if the government imposes a price floor at $18.07 Question 10 Suppose a tax of $4.0 is levied on sellers. What is the market price consumers pay to sellers? Question 11 Suppose a tax of $4.0 is levied on sellers. What is the market quantity? Question 12 Suppose a tax of $4.0 is levied on sellers. What is the total tax revenue collected by the government? Question 13 Suppose a tax of $4.0 is levied on sellers. Compute the producer surplus. Question 14 Suppose a tax of $4.0 is levied on sellers. Compute the consumer surplus. Question 15 Suppose a tax of $4.0 is levied on sellers. Compute the deadweight loss.

Answer 1

it is given; Demand Culve: P= I3-14 Surfly Curves_P: 0& +6 Solis At equilibrium, Demand - Supply 92-20 = 20 to 29-6 = 20+20 48. – 16 To find equilibrium price, but value of din either in demand curve de in supply carve... Demand curve: P = 22-gd - =22-2/4) =92-8 P = 14 Equilibrium Price = $14

Soli-6 Tequilibrium Suantity 4 We have equil found equilibrium quantity in questions i sol- 7 Market Vice will be $ 10.0 only when government imposes pluce ceiling at $ 100 Price ceiling is the maximum price that a seller Can be charged for consumer. Equilibrium price, is higher than Price ceiling so, Seller Cannot charge equilibrium Price when government implores pire ceiling

1 you ceiling at ----- When government imposes flice ceiling $90, then market quantity will be P = 99 - 20 Trece a 202 15. E و لف Price ceiling is higher than equilibrium Price so Consumers do not like to I buy the goods at Price $ 20 which is the greater & ton equilibrin Price $14. So, only lunit of good is sold. Bohing of government imported a price floss of $18, then to A Consumer suf s 18 18 = 22-28 2X 22-18=4 28-32-18 ( 4 IN The shaded region in the figure is the Conlemes slorphel. lo