Micro Economics question please help
Consider the following general demand and supply functions for a given commodity.
Qd = a - bp
Qs = dp - c
i. Find the equilibrium price and quantity [4 Marks]
ii. Suppose that a fixed tax t is imposed on the product in question, what is the new equilibrium price and quantity. [6 Marks]
iii. Express the value of t in terms of a, b, c, d, and p. [3 Marks]
iv. Use iii. Above to write the expression for government revenue. [2 Marks]
v. Suppose that instead of a fixed tax, the government decides to set a non-binding price floor equal to . How many units will be supplied and how many units will be demanded to ensure optimal quantities? [5 Marks]
Homework Answers
Qs = 3p + 10; Qd = -2p + 30
Let Qd be the number of units of a commodity demanded by consumers at a given time t and let Qsdenote the number of units of the commodity supplied by producers at a given time t. Let p be the price i...
Let Qd be the number of units of a commodity demanded by consumers at a given time t and let Qsdenote the number of units of the commodity supplied by producers at a given time t. Let p be the price in dollars of the commodity at time t. Suppose the supply and demand functions for a certain commodity in a competitive market are given, in hundreds of units, by Qs = 30 + p + 5 dp/dt Qd =...
10. Problems and Applications Q10 A market is described by the following supply and demand curves:...
10. Problems and Applications Q10 A market is described by the following supply and demand curves: QS = 4P QD = 400-P The equilibrium price is $_______ and the equilibrium quantity is _______ . Suppose the government imposes a price ceiling of $90. This price ceiling is _______ , and the market price will be $_______ . The quantity supplied will be _______ and the quantity demanded will be _______ . Therefore, a price ceiling of $90 will result in _______ . Suppose the government imposes a price...
A market is described by the following supply and demand curves: Qs = 3P Qd =...
A market is described by the following supply and demand curves: Qs = 3P Qd = 400-P The equilibrium price is S and the equilibrium quantity is Suppose the government imposes a price ceiling of $80. This price ceiling is , and the market price will be supplied will be . and the quantity demanded will be . Therefore, a price calling of $60 will result in the quantity the quantity Suppose the government imposes a price floor of $80....
Suppose demand and supply are given by Qd = 50 - P and Qs = 0.5P -...
Suppose demand and supply are given by Qd = 50 - P and Qs = 0.5P - 10. a. What are the equilibrium quantity and price in this market? Equilibrium quantity: Equilibrium price: b. Determine the quantity demanded, the quantity supplied, and the magnitude of the surplus if a price floor of $48 is imposed in this market. Quantity demanded: Quantity supplied: Surplus: c. Determine the quantity demanded, the quantity supplied, and the magnitude of the shortage if a price ceiling...
The wheat market is perfectly competitive, and the market supply and demand curves are given by the following equations:
The wheat market is perfectly competitive, and the market supply and demand curves are given by the following equations: QD = 20,000,000 - 4,000,000P QS = 7,000,000 + 2,500,000P, where QD and QS are quantity demanded and quantity supplied measured in bushels, and P = price per bushel. a. Determine consumer surplus at the equilibrium price and quantity. b. Assume that the government has imposed a price floor at $2.25 per bushel and agrees to buy any resulting excess supply. How many bushels of wheat...
Want to see the Titanic up close? That’ll be $130,000.00 – and some courage” (Vancouver Sun...
Want to see the Titanic up close? That’ll be $130,000.00 – and some courage” (Vancouver Sun Newspaper, Monday, January 22, 2018, p. NP3). Last week, in assignment 2, we determined that the mathematical Inverse Demand curve was: P = 216,400 – 1600 [Qd]. Suppose that in-depth research by the company promoting this once-in-a-lifetime “Titanic up-close experience” found their Inverse Supply curve to be P = 20,000 + 2,037.03[Qs] i. Suppose the Society of once-in-a-lifetime Opportunities for All has successfully lobbied...
4. Suppose the market for grass seed can be expressed as: Demand: Qd = 200 -...
4. Suppose the market for grass seed can be expressed as: Demand: Qd = 200 - 5P Supply: Qs = 40 + 5P If the government collects a $5 specific tax from sellers (here you can change the supply equation to Qs = 40 + 5(P-t) or Qs = 15+ 5P, How much will the quantity demanded change from the amount demanded before the tax? What price will consumers pay after the tax? What price will sellers receive after the...
THANK YOU FOR YOUR HELP Unit 7-Market Intervention: Price Ceilings and Floors, Taxes Suppose that the...
THANK YOU FOR YOUR HELP
Unit 7-Market Intervention: Price Ceilings and Floors, Taxes Suppose that the demand curve for coffee is Q = 10-P and the supply curveis Q = P. Draw the supply and demand curves below. ܘ ܩ ܤ ܙ ܗ ܗ ܚ ܢ 1 2 3 4 5 6 7 8 9 10 1. What is the equilibrium price and quantity? 2. What is total surplus, consumer surplus, and producer surplus? 3. Suppose the government implemented a...
Consider the market shown below. The government has imposed a price ceiling of $18. Problem 6-2...
Consider the market shown below. The government has imposed a
price ceiling of $18.
Problem 6-2 Consider the market shown below. The government has imposed a price ceiling of $18. Price (S) 48 42 36 30F 24 18 12 Tools -9 Qs -p QD Price Ceiling 20 40 60 80 100120140160180200220240 Quantity 30 24 18 12 Price Celling 20 40 60 80 100120140160180200220240 Quantity Instructions: Use the tools provided to plot the quantity demanded (QD) and the quantity supplied (Qs)....
The supply and demand for bottles of Saucy Sauce are described using the following functions: Qs...
The supply and demand for bottles of Saucy Sauce are described using the following functions: Qs = = 120P - 14,400 Qd = 18,900 - 60P where: Qs = Quantity supplied (1000s of bottles per year) Qd = Quantity demanded (1000s of bottles per year) P = price per bottle (pence) a) i) Determine the equilibrium price and quantity traded ii) Sketch the supply and demand functions, clearly labelling intercepts with the axes and the equilibrium output. [5 marks] b)...
A market is described by the following supply and demand curves: Qs = 3P Qd = 400-P The equilibrium price is S and the equilibrium quantity is Suppose the government imposes a price ceiling of $80. This price ceiling is , and the market price will be supplied will be . and the quantity demanded will be . Therefore, a price calling of $60 will result in the quantity the quantity Suppose the government imposes a price floor of $80....
THANK YOU FOR YOUR HELP
Unit 7-Market Intervention: Price Ceilings and Floors, Taxes Suppose that the demand curve for coffee is Q = 10-P and the supply curveis Q = P. Draw the supply and demand curves below. ܘ ܩ ܤ ܙ ܗ ܗ ܚ ܢ 1 2 3 4 5 6 7 8 9 10 1. What is the equilibrium price and quantity? 2. What is total surplus, consumer surplus, and producer surplus? 3. Suppose the government implemented a...
Consider the market shown below. The government has imposed a
price ceiling of $18.
Problem 6-2 Consider the market shown below. The government has imposed a price ceiling of $18. Price (S) 48 42 36 30F 24 18 12 Tools -9 Qs -p QD Price Ceiling 20 40 60 80 100120140160180200220240 Quantity 30 24 18 12 Price Celling 20 40 60 80 100120140160180200220240 Quantity Instructions: Use the tools provided to plot the quantity demanded (QD) and the quantity supplied (Qs)....
The supply and demand for bottles of Saucy Sauce are described using the following functions: Qs = = 120P - 14,400 Qd = 18,900 - 60P where: Qs = Quantity supplied (1000s of bottles per year) Qd = Quantity demanded (1000s of bottles per year) P = price per bottle (pence) a) i) Determine the equilibrium price and quantity traded ii) Sketch the supply and demand functions, clearly labelling intercepts with the axes and the equilibrium output. [5 marks] b)...
Most questions answered within 3 hours.
-
Explain why you should not lose any LDH activity when you
centrifuge a crude sample at...
asked 1 minute ago -
An AA battery (object), standing on end, is placed to the left
of a diverging lens...
asked 2 minutes ago -
After you measure the self-inductance of a coil, you unwind it
and then rewind one third...
asked 3 minutes ago -
1. Which of the following best describes a transistor?
A) a small electrical circuit made from...
asked 4 minutes ago -
Use generating function to find the number of distributions of
20 people into four different rooms...
asked 19 minutes ago -
The following data set consists the number of minutes a sample
of 25 people run every...
asked 23 minutes ago -
Suppose vacuum cleaners are part of the market basket used to
compute the CPI. Suppose also...
asked 35 minutes ago -
What intermediate results after the addition of H3O+ to
E-3-methyl-2-pentane?
pentene*
asked 40 minutes ago -
Potassium hydrogen phthalate is a solid, monoprotic acid
frequently used in the laboratory to standardize strong...
asked 59 minutes ago -
1-Describe the 3 major classes of ownerships of retailers
2-What are the differences between consumer and...
asked 42 minutes ago -
A Student takes a sample from a table top in the student lounge
using a sterile...
asked 50 minutes ago -
Give an answer that's easy to understand. Define stack data
structure. Show how the Stack operations...
asked 59 minutes ago