Please help with the following microeconomics question 3:
1. A city has a large number of casinos. The demand by patrons for the games (in thousands per week) is Qd = 90 - 3P and the supply is Qs = 3P where P is the price charged to play a game.
What is the equilibrium number (quantity) of games played?
What is the equilibrium price?
2. Continue your analysis of the casino market in the city: demand by patrons for the games (in thousands per week) is Qd = 90 - 3P and the supply is Qs = 3P.
Now suppose that the city passes a new law which requires that all casinos contribute m cents to a city charitable fund for each game played on their machines.
Graphically indicate the incidence of taxation on consumers as well as casino owners (producers). Explain what incidence of taxation is and what your graph tells you about the incidence of taxation in this case.
3. Suppose there is a island with no international trade but capable of growing many types of fruit. Consider the market for bananas on this island (and for our purposes, suppose the currency on this island nation is called dollars, a very original name).
Assume the demand for bananas of Qd = 1200 - 100P while supply is described by Qs = 100P.
Graphically depict this outcome.
Draw a diagram depicting the equilibrium in this market.
4. Suppose the government of the island has decided to give consumers a more attractive price for bananas by imposing a fixed, per unit subsidy.
Thus, start with the original demand (Qd = 1200 - 100P) and supply (Qs = 100P) and analyze this new intervention, the subsidy. The subsidy works like this: each banana seller receives a 2 dollar refund for each banana sold.
Equilibrium point is attained where demand and supply curve intersects each other.
Please help with the following microeconomics question 3: 1. A city has a large number of...
Please help with the following microeconomics question 2: 1. A city has a large number of casinos. The demand by patrons for the games (in thousands per week) is Qd = 90 - 3P and the supply is Qs = 3P where P is the price charged to play a game. What is the equilibrium number (quantity) of games played? What is the equilibrium price? 2. Continue your analysis of the casino market in the city: demand by patrons for...
1. Market Equilibrium and Incidence of a Subsidy In the market for hazelnuts (Q, measured in kilograms), monthly demand is given by Qd(p) = 280,000 – 20,000p, and monthly supply by QS(p) = 5,000p – 20,000, where p is the price of a kg of hazelnuts (in €). Suppose the government introduces a subsidy (s) of €5/kg. a) Find the equilibrium price received by producers before (p*) and after (ps**) the subsidy. [Hint: A subsidy is just a negative tax,...
1. The market for a product is defined by the following demand and supply curves: Qd=20-7p Qs=-4+5P where Qd and Qs are the quantities demanded and supplied, and P is the price of the product in £s. (i) Draw (accurately) a diagram to depict the market for this product and determine the equilibrium price and quantity. (ii) Solve for the equilibrium market price and quantity mathematically (remember that, in equilibrium, Qd=Qs).
Question 10 Suppose the demand for organic bananas is given by the following equation: Qd = 9-2P where Qd is the quantity demanded per week of organic bananas, and P is the price of organic bananas. Suppose further that the supply of organic bananas is: Qs = 3+2P where Qs is the quantity supplied per week of organic bananas. What is the equilibrium market quantity of organic bananas? (Round your answer to 2 decimal places.)
The following formulas represent the demand and supply curves for corn: QD = 1,600 – 125 * P QS = 440 + 165 * P Calculate the equilibrium price and quantity in this market and illustrate this graphically. Suppose corn becomes less popular so the market demand curve is now given by QD = 1,020 – 125 * P. Calculate the new equilibrium price and quantity and illustrate the movement from the old equilibrium to the new one graphically.
Plot the Supply and demand schedule. Pd Qd Ps Qs 5 14 5 1 7.7 10 7 2 9 4 9 4 18.5 2 18.5 14 Explain and illustrate what happens when a price ceiling is imposed? Explain and illustrate what happens when a price floor is imposed? A simple market has a demand curve Qd=110-5p and a supply curve Qs=-65+6p. Find the equilibrium price and quantity. Show graphically. A simple market has a demand curve Qd= 125-4p and a...
Using the equations shown below, answer the following questions with a carefully labelled graph (without calculations). (10)QD = a – bPQS = c + dPa. Draw demand and supply curves, and show the market equilibrium point.b. Assuming a tax of T is imposed on the seller side, what is the new demand and supply curve?c. What is the new equilibrium point?d. Label the portion of tax that buyer pays and the portion that seller pays?e. What is the effective price...
Consider the market for oranges. The supply curve is QS=-20 +10P The demand curve is Qd =100-10P Find the Equilibrium price. Find the equilibrium quantity Draw a rough sketch of your curves and depict the equilibrium What will be the outcome if the government fixes the price at $5.00 what will be the outcome? Calculate the consumers’ and producers’ surplus at the equilibrium price.
Demand, Supply and Equilibrium: Given the following equations representing the behavior of producers and consumers: Price Quantity Demanded Qd Quantity Supplied Qs 52 48 44 40 35 32 29 26 24 Consumers: Qd = 3,380 - 35P, Producers: Qs =95P, (P: Price) (Qd: quantity demanded, Qs: Quantity supplied ) What price corresponds to the equilibrium price for this market? (1%) What is the equilibrium quantity? Over what range of prices does a Surplus result? Over what range of...
1. Numerical analysis of supply and demand: Consider the following demand and supply functions that provide information on the market for coffee beans: Qd 50-2PPr Qs 10+3P where P is the price per pound of coffee beans, Pr is the price per pound of tea, and Qd and Qs are the quantity demanded and the quantity supplied of coffee beans in thousands of pounds. a Assuming that Pr 10, graph the market with a clearly labeled graph and calculate the...