Question #15:Given the Demand and supply system: Pb = 90 - 5 Qb & Pv = 4 + 3 Qv At a price-floor of P^ = 11 , how much CS is there ? Ans. 288.91, how much PS is there ? Ans. 173.34
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Question #15:Given the Demand and supply system: Pb = 90 - 5 Qb & Pv =...
Given the demand and supply system: Pb = 73 - 5 Qb & Pv = 3 + 2 Qv. How much surplus is created by the market?
Given the demand and supply system: Pb = 123 - 4Qb & Pv = 6 + 2Qv. At a price-floor of P=5, what is the change in CS (consumer surplus) compared to the market? What is the change in PS (producer surplus) compared to the market?
Question #12: Consider a monopolist with the (inverse) demand function: Pb = 385 - 13 Qb. Given an increasing marginal cost: mc = 36 + 4 Q, how much DWL is created ? (Assume fixed costs = 13 .)
Consider a monopolist with the (inverse) demand function: Pb = 372 - 8 Qb. Given an increasing marginal cost: mc = 69 + 7 Q, how much profit does the monopolist earn ? (Assume fixed costs = 68 .)
The market demand and supply is described by the following equations QD = 250 - 2P QS 3P 1) Find the market equilibrium. 2) What is the CS, PS, and W in this market? 3) Assume that the government introduces a equilibrium? price ceiling of p = 15. What is the new 4) Find the change in CS, PS, and W. Is there Dead Weight Loss? if so, of how much? 5) What does this tell you about the welfare...
The Demand and Supply functions, D (a) and S(9), for a particular commodity are given. Specifically, thousand units of the commodity will be demanded (sold) at a price of p= D (a) dollars per unit, while a thousand units will be supplied by producers when the price is p = S(q) dollars per unit. Find the consumers' surplus and the producers' surplus at equilibrium. D(q) = 65 - q'; $(a) = 12 + 2q + 5 O CS - $144,000;...
2. Suppose the market demand and supply functions of commodity X (it is a normal good) are as below: Qp = 120,000 - 20,000 P Qs = 20,000 p ve y em . a) Calculate consumer surplus (CS), producer surplus (PS), and total surplus in part (a) of that question b) Calculate CS, PS, and total surplus in part (c) of that question. How do these values compare to those in part (a) above? Explain the change (that is, explain...
1)Suppose Demand for Apples (in bushels) is given by Q = 90-P and Supply is given by Q = P. The market for apples is dominated by a single, monopolistic firm "NYC Apples". Suppose you could regulate the market for Apples and impose a price ceiling. What price would maximize social welfare (combined producer and consumer surplus)? 2)Suppose Demand for Apples (in bushels) is given by Q = 90-P and Supply is given by Q = P. The market for...
-Supply 1 Supply 2 $120 $115 $110 $105 $100 $95 $90 -Supply 3 Demand 1 Demand 2 Demand 3 -Price Floor Price Ceiling 0 5 10 15 20 25 30 35 40 45 50 55 60 65 70 75 80 85 90 95 100 105 110 5) From the graph above, the market starts at supply 1 and demand 1, a. If there is a change in technology in the production process which makes it much easier to propose, would...
The market demand and supply is described by the following equations: Q = 100 - P Q=2P - 20 1) Find the market equilibrium 2) What is the CS, PS, and W in this market? 3) Assume that the government introduces a subsidy of 15$ per unit to the supply. What is the new equilibrium? 4) Find the change in CS, PS, and W. Is there Dead Weight Loss? if so, of how much?. 5) What does this tell you...