ZuoTi.Pro
Question

Suppose the supply and demand for desks are given as follows. Qd = 600-2P Qs = 4P Which type of price control at P=200 will c
- Qs = 4p Qo = 600-21 Price 30 + Supply tou Demand Price D 400 QK 300 + 200 507 200 460 Demand Qty
business   economics   
0 0
Add a comment Improve this question Transcribed image text
Next > < Previous
Sort answers by oldest

Homework Answers

Answer #1

Dear student your graphical solution is perfectly correct. Please note that when government imposes price celling and it is above the equilibrium price then no market shortage is created hence no dead weight loss. Price above the equilibrium price and creating dead weight loss only occurs for the case of price floor.

0 0
Add a comment
Know the answer?
Add Answer to:
Suppose the supply and demand for desks are given as follows. Qd = 600-2P Qs =...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions

  • 1 Suppose the demand for shoes is given by: QD= 210 -2P. The supply of shoes...

    1 Suppose the demand for shoes is given by: QD= 210 -2P. The supply of shoes is given by: QS= 9P -120. Calculate the Gains from Trade (also known as Economic Surplus) that would exist in this market in a competitive equilibrium. 2 Suppose the demand for jackets was given by: QD= 140 -0.4P. The supply of jackets is given by: QS= 4P -80. Suppose the price was $49 per jacket. Calculate whether there is a surplus or shortage of...

  • Suppose the demand equation can be represent as QD = 100 -2P and the Supply equation...

    Suppose the demand equation can be represent as QD = 100 -2P and the Supply equation can be represented as QS = -10 + P. a. Find the equilibrium price and quantity. b. At a price ceiling of $20, what is the QD and QS. What is the deadweight loss, consumer surplus and producer surplus amount?

  • Consider the following demand and supply curves: Qd = 200 – 2P and Qs = 20...

    Consider the following demand and supply curves: Qd = 200 – 2P and Qs = 20 + 4P. What are the equilibrium quantity and price? At that equilibrium what is the price elasticity of demand?

  • Suppose that supply and demand are given by the following equations: QD = 40 – 4P...

    Suppose that supply and demand are given by the following equations: QD = 40 – 4P and QS = 2p – 2. In the above market, if a price floor of $8.50 was put into place, which of the following would result?             A) A shortage of 10 units             B) A surplus of 11 units             C) Deadweight loss of at least $24             D) An increase in consumer surplus. Why is the Answer C?

  • Suppose market demand andmarket supply are given by Qd = 15 –4P and Qs = -3+2P...

    Suppose market demand andmarket supply are given by Qd = 15 –4P and Qs = -3+2P What are the equilibrium quantity and price in this market? Show your work!!!

  • Deadweight Loss Given the following information: Qs = 2P P = Qs/2 QD= 180 - 4P...

    Deadweight Loss Given the following information: Qs = 2P P = Qs/2 QD= 180 - 4P P = (QD -180)/-4 AR = P = 45-.25Q TR = 45 - .25Q2                 Hint: MC – supply curve MR = 45 - 5Q Qs = supply Qd = demand Using the above information, Graph and calculate the price-output solution under competitive market assumptions. How much is the                       consumer surplus           producer surplus and                        total surplus? Calculate the price and the...

  • Q3) Suppose that the market demand and supply curve in a competitive market are Q"-15 - 2P and QS...

    Q3) Suppose that the market demand and supply curve in a competitive market are Q"-15 - 2P and QS-P. For each of the following policies, calculate the price and quantity that will be traded and the value of the deadweight loss. a) An excise tax of S1 per unit, paid by producers. b) A subsidy of $2 per unit, paid to consumers. c) A price floor of S7. d) A price ceiling of S4. e) A production quota of 3...

  • Problem 1 Deadweight Loss Given the following information: Qs = 2P P = Qs/2 QD= 180...

    Problem 1 Deadweight Loss Given the following information: Qs = 2P P = Qs/2 QD= 180 - 4P P = (QD -180)/-4 AR = P = 45-.25Q TR = 45 - .25Q2 MR = 45 - .5Q Hint: MC – supply curve MR = 45 - 5Q Qs = supply Qd = demand A) Using the above information, 1) Graph and calculate the price-output solution under competitive market assumptions. 2) How much is the    consumer surplus producer surplus and...

  • Q7. The Demand for Ice cream is given by QD = 20-2P, measured in gallons of...

    Q7. The Demand for Ice cream is given by QD = 20-2P, measured in gallons of ice cream. The supply of ice cream is given by QS= 4P-10. Graph the supply and demand curve and find the equilibrium price and quantity of ice cream. Suppose the government legislates a $1 tax on a gallon of ice cream, to be remitted by the seller. Plot this change on the graph and label it. Does the demand/supply increase or decrease a result...

  • Use the following demand and supply functions to answer this question; Qd=100-2p; Qs=60+2p ; If a...

    Use the following demand and supply functions to answer this question; Qd=100-2p; Qs=60+2p ; If a ceiling price of $8 is established by the government, then a new equilibrium price will emerge. a shortage of 84 will result. a shortage of 8 will result. a surplus of 8 will result.

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT