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Problem 4: Competitive markets, equilibriua, and surplus. The market demand is Q-15-P, and the market supply...
The market demand isQd= 15−P, and the market supply isQs=P/2. (a) Assume that the market is...
The market demand isQd= 15−P, and the market supply isQs=P/2. (a) Assume that the market is perfectly competitive. What are the equilibrium price and quantity? (b) Assume that the market is perfectly competitive. What is the equilibrium consumer,producer, and total surplus? (c) In order to support producers by increasing prices, the government imposes a production quota ofQ= 4 units. What will the market clearing price be? At that price,what is the consumer, producer, and total surplus? What is the deadweight...
Suppose that in a perfectly competitive market, demand is given by Q=58.0-P and supply is given...
Suppose that in a perfectly competitive market, demand is given by Q=58.0-P and supply is given by Q=P-27.0. The government imposes a per-unit excise tax of $1 on the good. What is producer surplus after the tax is imposed? No units, no rounding.
For a perfectly competitive market, daily demand for a good is given by P-10-Q, where P...
For a perfectly competitive market, daily demand for a good is given by P-10-Q, where P ¡s price and Q is quantity. Supply is given by P = 2 + Q. Suppose the government imposes an excise tax of $2 on sellers in the market. (An excise tax is a tax per unit.) (a) What is the original (before the tax) producer surplus and (b)new (after the tax) producer surplus?
Suppose that in a perfectly competitive market, demand is given by Q=59.0-P and supply is given...
Suppose that in a perfectly competitive market, demand is given by Q=59.0-P and supply is given by Q=P-28.0. The government imposes a per-unit excise tax of $1 on the good. What is consumer surplus after that tax is imposed? No units, no rounding.
2. Consider a market where demand is given by Q = 60 – P and the...
2. Consider a market where demand is given by Q = 60 – P and the marginal cost for every firm is $15. a. Assume the market is perfectly competitive. Find equilibrium price and quantity. Calculate consumer surplus, producer surplus, total surplus, and deadweight loss. b. Now assume that there is only one supplier in the market. Find equilibrium price and quantity. Calculate consumer surplus, producer surplus, total surplus, and deadweight loss. Is total surplus higher or lower compared to...
Question 1: In a perfectly competitive market, the demand curve is given as: Q=100-5P, the supply curve is given as Q=3P...
Question 1: In a perfectly competitive market, the demand curve is given as: Q=100-5P, the supply curve is given as Q=3P-12. Compute the total social surplus of this market. If the government impose a tax on the producers, and the tax rate is $2 per unit produced. What is the deadweight loss? If the government impose a tax on the consumers, and the tax rate is $2 per unit purchased, graphically show the change in the market equilibrium and the...
Assume a perfectly competitive market without externalities. Market Demand is given by P = 15 −...
Assume a perfectly competitive market without externalities. Market Demand is given by P = 15 − 1 2 Q and Market Supply is given by P = 1 5 Q + 2. If the government imposes a maximum price of P=3, what is the minimum Deadweight loss? Enter the absolute value only, no negative or $ signs.
A demand function for milk has been estimated as P = 60 – 3Q and a...
A demand function for milk has been estimated as P = 60 – 3Q and a supply function for milk has been estimated as P = 5 + 2.5Q. 1. Draw a diagram of this market in competitive autarky equilibrium (without the policy). Label all relevant elements (prices, quantities, supply, and demand). Include the numerical values for the important points in your diagram. Calculate consumer surplus, producer surplus, government expenditure, deadweight loss, and total welfare in this market. (7 marks)...
The perfectly competitive firm and market in the short run Consider a perfectly competitive market where...
The perfectly competitive firm and market in the short run Consider a perfectly competitive market where demand is QD = 2,000 - 40P and quantity is measured in units while price is measured in dollars per unit. The long run supply is QS = 100P - 800. a) Find the equilibrium price and the equilibrium quantity. b) When the market is in equilibrium, what is the total expenditure in this market? c) When the market is in equilibrium, what is...
Consider a perfectly competitive market where the market demand curve is given by Q = 76−8P...
Consider a perfectly competitive market where the market demand curve is given by Q = 76−8P and the market supply curve is given by Q=−8+4P. In situations （c）, determine the following items (i-viii) (c) A market with subsidy S=9. i) The quantity sold in the market. ii) The price that consumers pay (before all taxes/subsidies). iii) The price that producers receive (after all taxes/subsidies). iv) The range of possible consumer surplus values. v) The range of possible producer surplus values....
For a perfectly competitive market, daily demand for a good is given by P-10-Q, where P ¡s price and Q is quantity. Supply is given by P = 2 + Q. Suppose the government imposes an excise tax of $2 on sellers in the market. (An excise tax is a tax per unit.) (a) What is the original (before the tax) producer surplus and (b)new (after the tax) producer surplus?
2. Consider a market where demand is given by Q = 60 – P and the marginal cost for every firm is $15. a. Assume the market is perfectly competitive. Find equilibrium price and quantity. Calculate consumer surplus, producer surplus, total surplus, and deadweight loss. b. Now assume that there is only one supplier in the market. Find equilibrium price and quantity. Calculate consumer surplus, producer surplus, total surplus, and deadweight loss. Is total surplus higher or lower compared to...
A demand function for milk has been estimated as P = 60 – 3Q and a supply function for milk has been estimated as P = 5 + 2.5Q. 1. Draw a diagram of this market in competitive autarky equilibrium (without the policy). Label all relevant elements (prices, quantities, supply, and demand). Include the numerical values for the important points in your diagram. Calculate consumer surplus, producer surplus, government expenditure, deadweight loss, and total welfare in this market. (7 marks)...
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