Suppose that a demand curve is given by Qd = 144 - 3P, and P* = 7. What is the value of Consumer Surplus?
2.1 Define consumer surplus. 2.2 Suppose a consumer's demand curve is given by Qd = 8 -0.25P. Compute consumer surplus when P = 16.
Assume a perfectly competitive industry. The demand curve is QD = 93 − 3P and the supply curve is QS = -2 + 2P a) Find producer and consumer surplus. Suppose that a tax of $20 per unit is imposed on firms. b) Find the burden of the tax on consumers c) Find the burden of tax on firms d) Find any deadweight loss.
Suppose that a Supply curve is given by Qs = 38 + 3P, and P* = 99. What is the value of Producer Surplus?
Suppose demand and supply for food is given by 100 - 6P = Qd : Demand Curve Qs = 28 + 3P : Supply Curve ∃p = p* ∋qd = qs = q* What is the (marginal) willingness to pay for the 30th unit? What is the marginal additional cost for the 30th unit? Show on two separate graphs.
Consider the following supply and demand functions qD = 12 - 3p qS = -3 + 2p Using the supply and demand functions, suppose a price ceiling of p = 2 were implemented. How much is supplied to the market and how much is demanded? What is the excess demand? Calculate the consumer surplus, producer surplus, and welfare level without the priceceiling. Calculate the consumer surplus, producer surplus, welfare level, and dead weight loss withthis price ceiling. What if the...
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 that demand is given by the equation: Qd 180-3P And supply is given by the equation: Qs P-20 Question Using the midpoint formula, calculate the elasticity for demand Round your answer to 2 decimal places) 2.43, and elastic @ 0.24, and elastic o 2.43, and inelastic 0.24, and inelastic
The demand curve for a product is given by the equation Qd- 600 40 P If the imposition of a sales tax causes the market price of this product to rise from $4 to $5, the loss in consumer surplus would be: (a) S40 (b) $420 X (c) $440 (d) S540 (P is measured in S)
Johnathon's household frequently purchases tomatoes from the local market. His demand for tomatoes is: Qd^J (p)=15-3p A) When Jonathan went to the market last week the price of 1 tomato was $6. This week the price of 1 tomato is $2. What is Johnathans original and new consumer surplus? What is the change in consumer surplus? B) Johnathan lives with his sister, who also ears tomatoes. She has the following demand function: Qd^s (p)=24-3p If Jonathan and his sister are...
Suppose that market demand for a good is given by QD(P) = 10−P. The total cost of production is TC(Q) = 2Q2. Determine quantity QM and price PM that a monopolist will choose in this market. Calculate consumer surplus (CS), producer surplus (PS), and the deadweight loss (DWL) resulting from the monopoly. Graphical Solution would suffice! 1) (25 points) Suppose that market demand for a good is given by Q”(P) - 10-P. The total cost of production is TCQ) =...