the demand is P = 185 – 2Q & supply is P = 25 + 2Q....
the demand is P = 185 – 2Q & supply is P = 25 + 2Q.
Equilibrium price =
$105
Equilibrium Quantity = 40
To enable more citizens to buy more gasoline, the Government decides to give gasoline producers a subsidy of $12 per unit.
What price will consumer’s pay and how much gasoline will they buy? How much will the Government spend on the subsidy? What will be the change in producer surplus?
Homework Answers
Please find the answer in the images attached.
Let the industry demand be D(p) = 100−p, and the industry supply be S(p) = p....
Let the industry demand be D(p) = 100−p, and the industry supply be S(p) = p. (a) Find the equilibirum quantity and the equilibrium price (b) Draw the demand and supply on a graph. Show on this graph the equilibrium, the consumer surplus and the producer surplus. (c) Find the value of the producer surplus. (d) Find the value of the consumer surplus. Now let the government introduce a value tax of 50% paid by the producers. (e) Find the...
Consider a market where demand is equal to D = P= 30 - 2Q, and supply...
Consider a market where demand is equal to D = P= 30 - 2Q, and supply is equal to S= P=5+ .05Q,... D = demand, S = supply, P = price, and Q = quantity. Calculate the following values for this market: Equilibrium price Equilibrium quantity Consumer surplus Producer surplus
5. TAXES/SUBSIDIES, AND OTHER GOVERNMENT REGULATIONS 1. Consider the demand and supply for bubbly water in...
5. TAXES/SUBSIDIES, AND OTHER GOVERNMENT REGULATIONS 1. Consider the demand and supply for bubbly water in a market represented by the following equations: QD = 15 - 10P QS = 40P - 50 where Q is millions of bottles per year and P measures dollars per bottle. The equilibrium price of bubbly water is $1.30 per bottle and 2 million bottles are sold each year. (a) Calculate the price elasticity of demand and the price elasticity of supply at the...
Demand curve: P = 30 – Q Supply curve: P = 2Q a) Calculate the equilibrium...
Demand curve: P = 30 – Q Supply curve: P = 2Q a) Calculate the equilibrium quantity and price. b) Draw the curves. c) Suppose that the government set the price at 25 dollars. Calculate the shortage or surplus that is created on the market. W4 exercise Use the demand and supply functions from ‘W3 exercise’ and calculate the consumer surplus and the producer surplus. W5 exercise Suppose that the demand schedule for electric bicycles is as follows: a) Use...
2. Suppose the market supply function for natural gas is P = 10 + 2Q and...
2. Suppose the market supply function for natural gas is P = 10 + 2Q and the market demand function of natural gas is P = 70 - Q, where P is the price of the natural gas per cubic feet and Q is the quantity of natural gas bought and sold. 1) What are the equilibrium price and quantity of natural gas in a competitive market? 2) Compute the consumer surplus and producer surplus. Assume the government imposes a...
Suppose you are given the following Supply and Demand equations. P=80-Q P=20+2Q How much would producers...
Suppose you are given the following Supply and Demand equations. P=80-Q P=20+2Q How much would producers be willing to pay lobbyists to get the government to establish a price floor at $70?
1) Suppose supply is given by:10+2Q, and demand is given by: P-120-3Qs A) Find equilibrium price...
1) Suppose supply is given by:10+2Q, and demand is given by: P-120-3Qs A) Find equilibrium price and quantity B) What are the demand and supply elasticities at equilibrium? C) Neaxt, suppose the government imposes an excise tax of $10 per unit. What is the price that consumers pay, the price that selers receive after paying the tax, and the tax revenue? D) Show the portion of the tax that is borne by consumers and what portion is borne by producers...
The market demand isQd= 15−P, and the market supply isQs=P/2. (a) Assume that the market is...
The market demand isQd= 15−P, and the market supply isQs=P/2. (a) Assume that the market is perfectly competitive. What are the equilibrium price and quantity? (b) Assume that the market is perfectly competitive. What is the equilibrium consumer,producer, and total surplus? (c) In order to support producers by increasing prices, the government imposes a production quota ofQ= 4 units. What will the market clearing price be? At that price,what is the consumer, producer, and total surplus? What is the deadweight...
Suppose that demand and supply functions for good X are: QD=90-10P (P=9-0.1QD) QS=20P-6 (P=0.3+0.05QS) a. Graph...
Suppose that demand and supply functions for good X are: QD=90-10P (P=9-0.1QD) QS=20P-6 (P=0.3+0.05QS) a. Graph this situation. b. What is the equilibrium price and quantity in the market for good X? c. What is consumers surplus? Producers surplus? d. Suppose the government imposes a per unit tax on good X equal to 1 dollar (per unit). What is the new equilibrium price and quantity? How much revenue would this tax raise for the government? What is consumers surplus? Producers...
The price elasticity of supply for a product is 3, while the price elasticity of demand...
The price elasticity of supply for a product is 3, while the price elasticity of demand is -1. In equilibrium, price is 6 (in hundreds of dollars) and quantity consumed is 2 (in thousands of units). (a) Assuming supply and demand are linear, reconstruct and draw the supply and demand curves. Label the intercepts. (b) If a subsidy of $1 per unit is imposed what are PB and PS after the subsidy? What is the new equilibrium quantity? Illustrate them...
Consider a market where demand is equal to D = P= 30 - 2Q, and supply is equal to S= P=5+ .05Q,... D = demand, S = supply, P = price, and Q = quantity. Calculate the following values for this market: Equilibrium price Equilibrium quantity Consumer surplus Producer surplus
5. TAXES/SUBSIDIES, AND OTHER GOVERNMENT REGULATIONS 1. Consider the demand and supply for bubbly water in a market represented by the following equations: QD = 15 - 10P QS = 40P - 50 where Q is millions of bottles per year and P measures dollars per bottle. The equilibrium price of bubbly water is $1.30 per bottle and 2 million bottles are sold each year. (a) Calculate the price elasticity of demand and the price elasticity of supply at the...
1) Suppose supply is given by:10+2Q, and demand is given by: P-120-3Qs A) Find equilibrium price and quantity B) What are the demand and supply elasticities at equilibrium? C) Neaxt, suppose the government imposes an excise tax of $10 per unit. What is the price that consumers pay, the price that selers receive after paying the tax, and the tax revenue? D) Show the portion of the tax that is borne by consumers and what portion is borne by producers...
Most questions answered within 3 hours.
-
The following slope distances and differences in elevations
between the tape ends were recorded for a...
asked 9 seconds from now -
1. Assuming random walk markets and normally distributed
returns, if a one day VaR on an...
asked 8 minutes ago -
(a) With a variable life insurance policy, the rate of return on
the investment (the death...
asked 19 minutes ago -
By applying what you know about Grignard reagents and the
mechanism by which benzoic acid is...
asked 42 minutes ago -
For thermoplastics, explain the effects of increasing of each of
the following properties on a polymer’s...
asked 43 minutes ago -
Make a menu for the user to use in python 3 that can search and
replace...
asked 34 minutes ago -
1) An aqueous solution contains 0.280 M
NaHS and 0.128 M
H2S.
The pH of this...
asked 49 minutes ago -
Situational Leadership
is based on interplay of all of the following except:
The amount of guidance...
asked 50 minutes ago -
Consider the following problem: given n positive integers,
separate them into two groups such that adding...
asked 54 minutes ago -
Briefly discuss the following statements:
2.1 A partner never has the right to claim compensation for...
asked 56 minutes ago -
If a bond has an annual probability of default of 6%, 10% and
12% in years...
asked 1 hour ago -
Let X be normally distributed with mean μ = 10 and standard
deviation σ = 6....
asked 1 hour ago