Homework Answers
The price control is set up at P2. At the price P2 tu the quantity supplied is 120000 and the quantity demanded is 90000. Hence at the price P2 the quantity supplied is greater than the quantity demanded.
So at the price floor there is excess supply of 30000 pencils.
The price cannot go below P2.
Without price regulation the quantity in the market sold and bought would have been 105000. But because of the price floor, the quantity supplied is restricted to 90000 as this is what is demanded by the buyers. Because of price floor the consumer surplus also so has gone down due to an increase in price. However the consumer surplus has increased due to an increase in price caused by the price floor.
This price floor therefore by restricting the output creates a deadweight loss in the market for pencils.
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2 pts Question 11 Sellers in the pencil industry lobbied for the government to impose a...
[1] INote that AC in the Figure below is ATC] For the following perfectly competitive industry...
[1] INote that AC in the Figure below is ATC] For the following perfectly competitive industry (market) and firm below, assume that P1 $6.80, P2 $3.80, Q1 1200, and Q2 870. Calculate parts (a) (h) below: Indvidual firm Price Industry Price MC Ms AR-MR MS2 P1 AC P2 AR2 MR2 Md Industry Output QFirm's Output (a) At Demand/P1, Firm's Total Revenue (TR) (b) At Demand/P1, Firm's Average Total Cost (ATC) use AC on graph (c) At Demand/P1, Profit (T) (d)...
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Please Help Incorrect Question 43 0/2 pts Because interest rates on government bonds reflect the risk...
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Incorrect Question 43 0/2 pts Because interest rates on government bonds reflect the risk of default, the historically high bond yields are signaling that government bonds are a risky investment. a country perceived as a higher credit risk can pay lower interest rates when it borrows. bond buyers are willing to accept lower interest payments for bonds perceived as high-risk investments. a country perceived as a higher credit risk must pay higher interest rates when it borrows. Incorrect...
How to do this question ? B2-(13 MARKS) Consider a perfectly competitive industry in which each...
How to do this question ?
B2-(13 MARKS) Consider a perfectly competitive industry in which each firm i has a total cost function given by the equation: TC,- 128+ 4q+ 2q. Further, assume that the industry demand finction is given by the following: P = 84-20 a) Describe the long nun market equilibrium. That is, identify the equilibrium price and quantity output for each firm, the number of fims in the industry and the level of producer and consumer surplus....
NOT SURE IF MY ANSWERS ARE CORRECT. Please help and see for any corrections! Question 15...
NOT SURE IF MY ANSWERS ARE CORRECT. Please help and see for any
corrections!
Question 15 6 pts Figure 8 per unit $100 $90 ..... $80 $701 $60 $501 $401 $30 $20 $10 0 1 2 3 4 5 6 7 8 9 10 11 12 Quantity (in thousands) Refer to Figure 8 which shows the supply and demand in the market for microscopes. The government imposes a $30 per unit tax on this market. BEFORE the imposition of the...
1. 2. 3. 4. 5. 6. Submit when finished answering the R button. Due to this being a web course, only scores will...
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2.
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5.
6.
Submit when finished answering the R button. Due to this being a web course, only scores will be shown, there will be back Question 1 1 pts Willingness to pay measures the value that a buyer places on a good. O is the amount a seller actually receives for a good minus the minimum amount the seller is willing to accept. is the maximum amount a buyer is willing to pay minus the minimum...
Please help with these questions, Question 1 0.16 pts Use the following scenario to answer the...
Please help with these questions,
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For questions (2) and (3) suppose the government imposes an emission standard on the firms requiring...
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Question 3 14 pts m ine that the government impossa per unit tax of S2. Which...
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QUESTION 21 Figure 14-3 Suppose a firm operating in a competitive market has the following cost...
QUESTION 21 Figure 14-3 Suppose a firm operating in a competitive market has the following cost curves: AVC " a"* PRICE " a QQ: QQQ QUANTITY Refer to Figure 14-3. Firms would be encouraged to enter this market for all prices that exceed a. P1 b.P4 c. P2 d. P3- OOOO QUESTION 20 Figure 14-1 Suppose that a firm in a competitive market has the following cost curves: PRICE ----- 1 4 5 2 3 QUANTITY Refer to Figure 14-1....
[1] INote that AC in the Figure below is ATC] For the following perfectly competitive industry (market) and firm below, assume that P1 $6.80, P2 $3.80, Q1 1200, and Q2 870. Calculate parts (a) (h) below: Indvidual firm Price Industry Price MC Ms AR-MR MS2 P1 AC P2 AR2 MR2 Md Industry Output QFirm's Output (a) At Demand/P1, Firm's Total Revenue (TR) (b) At Demand/P1, Firm's Average Total Cost (ATC) use AC on graph (c) At Demand/P1, Profit (T) (d)...
Question 41 1 pts Refer to Figure 4-2. Suppose the government allows imports into the silver pendants market for the first time. Figure 4-2 The equations represent the demand and supply for silver pendants. The government is considering imposing a $4 per unit tax on buyers of silver pendants. QD = 50,000 - 2000P QS = -10,000 + 2000P QD (with tax) = 50,000 - 2000(P+T) The market price would be higher and domestic production would decrease. The market price...
Please Help
Incorrect Question 43 0/2 pts Because interest rates on government bonds reflect the risk of default, the historically high bond yields are signaling that government bonds are a risky investment. a country perceived as a higher credit risk can pay lower interest rates when it borrows. bond buyers are willing to accept lower interest payments for bonds perceived as high-risk investments. a country perceived as a higher credit risk must pay higher interest rates when it borrows. Incorrect...
How to do this question ?
B2-(13 MARKS) Consider a perfectly competitive industry in which each firm i has a total cost function given by the equation: TC,- 128+ 4q+ 2q. Further, assume that the industry demand finction is given by the following: P = 84-20 a) Describe the long nun market equilibrium. That is, identify the equilibrium price and quantity output for each firm, the number of fims in the industry and the level of producer and consumer surplus....
NOT SURE IF MY ANSWERS ARE CORRECT. Please help and see for any
corrections!
Question 15 6 pts Figure 8 per unit $100 $90 ..... $80 $701 $60 $501 $401 $30 $20 $10 0 1 2 3 4 5 6 7 8 9 10 11 12 Quantity (in thousands) Refer to Figure 8 which shows the supply and demand in the market for microscopes. The government imposes a $30 per unit tax on this market. BEFORE the imposition of the...
1.
2.
3.
4.
5.
6.
Submit when finished answering the R button. Due to this being a web course, only scores will be shown, there will be back Question 1 1 pts Willingness to pay measures the value that a buyer places on a good. O is the amount a seller actually receives for a good minus the minimum amount the seller is willing to accept. is the maximum amount a buyer is willing to pay minus the minimum...
Please help with these questions,
Question 1 0.16 pts Use the following scenario to answer the following questions: Carmela's Churros is a perfectly competitive firm that sells desserts in Houston Texas. Carmela's Churros currently is taking in $40,000 in revenues, and has $15,000 in explicit costs and $25,000 in implicit costs. Holding all else constant, the price of churros in this market will O stay where it is increase in the long run. decrease in the long run. O decrease...
For questions (2) and (3) suppose the government imposes an emission standard on the firms requiring Firm 1 to reduce emissions by 30 tons and Firm 2 to reduce emissions by 20 tons. Question 2 10 pts Does the emission standard bring about a cost-effective allocation of pollution control responsibility? Yes NO Question 3 10 pts Calculate the total cost of pollution control for Firm 1 and for Firm 2. TCC1 - $ TCC2 = $ rvices Consider an industry...
Question 3 14 pts m ine that the government impossa per unit tax of S2. Which of the following are the equilibrium price paid by the consumers (P). price received by the firm P andan competitive 12.5 and 14 and 22 13 and 15 and 20 14 and 16 and 18 15 and 17 and 16 Previous Next Quiz saved at 7:15pm Submit People Quizzes odules laborations ale Drive Question 2 18 pts er Registration nic Integrity ope Consider the...
QUESTION 21 Figure 14-3 Suppose a firm operating in a competitive market has the following cost curves: AVC " a"* PRICE " a QQ: QQQ QUANTITY Refer to Figure 14-3. Firms would be encouraged to enter this market for all prices that exceed a. P1 b.P4 c. P2 d. P3- OOOO QUESTION 20 Figure 14-1 Suppose that a firm in a competitive market has the following cost curves: PRICE ----- 1 4 5 2 3 QUANTITY Refer to Figure 14-1....
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