ZuoTi.Pro
Question

5. Suppose the demand for ice cream sundaes can be represented by the equation Qp- 10-P, and the supply is given by the equat
business   economics   
0 0
Add a comment Improve this question Transcribed image text
Next > < Previous
Sort answers by oldest

Homework Answers

Answer #1

ANswer
the market is in equilibrium at Qd=Qs
equating both
10-P=P
2P=10
P=5
Q=10-P=10-5=5
---
producer surplus is the area above supply curve and below price and left of the quantity.
PS=0.5*5*5
=$12.5
the Producer surplus is $12.5
option c


0 0
Add a comment
Know the answer?
Add Answer to:
5. Suppose the demand for ice cream sundaes can be represented by the equation Qp- 10-P,...
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

  • Question 1 (10 pts) Consider the following market. Demand is given by Qp 5-P where Qp...

    Question 1 (10 pts) Consider the following market. Demand is given by Qp 5-P where Qp is the quantity demand and p is the price. Supply is given by Qs - F where Qs is the quantity supplied. a. What is the market equilibrium quantity and price? b. Calculate consumer, producer, and total surplus. Depict your answer in a graph. c. Suppose the government imposes a price floor of P- 4. Calculate the consumer surplus, producer surplus, and deadweight loss....

  • The market for meat is represented by the following demand and supply equations: Demand: Qp = 400 - 10 P Supply: Qs...

    The market for meat is represented by the following demand and supply equations: Demand: Qp = 400 - 10 P Supply: Qs = -200 + 20 ⓇP 1. Draw the demand and supply in the same graph where price and quantity on the vertical and horizontal axis respectively 2. Calculate the equilibrium price and quantity 3. Calculate the Consumer and producer surplus at the equilibrium. 4. What would happened to the new equilibrium price and quantity if the price 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?

  • PLEASE ANSWER QUESTIONS E - H Q3 The demand for ice cream is given by QD...

    PLEASE ANSWER QUESTIONS E - H Q3 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. a. Graph the supply and demand curves, and find the equilibrium price and quantity of ice cream. b. Suppose that the government legislates a $1 tax on a gallon of ice cream, to be collected from the buyer. Plot the new...

  • 16. The demand for ice cream is given by 20- 2P, measured in gallons of ice...

    16. The demand for ice cream is given by 20- 2P, measured in gallons of ice cream. The supply of ice cream is given by 4P- 10. a. Graph the supply and demand curves, and find the equilibrium price and quantity of ice cream. b. Suppose that the government legislates a SI tax on a gallon of ice cream, to be collected from the buyer. Plot the new demand curve on your graph. Does demand increase or decrease as a...

  • Assume that the market can be represented by the supply and demand curves: Qs = 6P...

    Assume that the market can be represented by the supply and demand curves: Qs = 6P - 60 Qp = 60 - 4P If the price is 14 (P=14) then the quantity (Q) at market disequilibrium would result in A shortage of 20 units A surplus of 20 URT A surplus cf2units A shortage units n

  • 9. The demand for commodity X is represented by the equation P = 10 - 0.2...

    9. The demand for commodity X is represented by the equation P = 10 - 0.2 Q and supply by the equation P = 2 + 0.2 Q . Calculate consumer and producer surplus at equlibiruim

  • Consider the following market. Demand is given by 5- P where Qo is the quantity demand...

    Consider the following market. Demand is given by 5- P where Qo is the quantity demand and P is the price. Supply is given by Qs- where Qs is the quantity supplied. a. What is the market equilibrium quantity and price? b Calculate consumer, producer and total surplus Depict your answer in a graph. c. Suppose the government imposes a price floor of P - 4. Calculate the consumer surplus, producer surplus, and deadweight loss. Depict your answer in a...

  • 5. Suppose that the demand curve for chocolate is Qp= 10 -/.P and the supply Qs...

    5. Suppose that the demand curve for chocolate is Qp= 10 -/.P and the supply Qs P 1. Suppose that we have an sell chocolate at a price of $2. (10 points) curve is opportunity to open are trade borders and buy and b. Suppose that we impose a tariff of $1 per unit of chocolate. What is the dead weight loss of this tariff (relative to the case with free trade)? (5 points)

  • Suppose that the demand and supply functions are P=10-Q and P=Q respectively. Which of the following...

    Suppose that the demand and supply functions are P=10-Q and P=Q respectively. Which of the following statements are correct for the value of consumer and producer surplus in the equilibrium? Select one or more: a. The value of producer surplus is 25. b. The value of consumer surplus is 15. c. The value of consumer surplus is 12.5. d. The value of producer surplus is 15. e. The value of consumer surplus is 25. f. The value of producer surplus...

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