Suppose that market demand for a good is given by Q = 9 - 0.3 P...
Suppose that market demand for a good is given by Q = 9 - 0.3 P while market supply is given by Q = 4 + 0.3 P where Q is the quantity of the good in units, and P is the price of the good in $ per unit. Calculate the consumer surplus in this market if the market is perfectly competitive (Don't use the $ sign in your answer and round it to two decimal points)
Homework Answers
Answer
The market is in equilibrium at Qd=Qs
9-0.3P=4+0.3P
0.6P=5
P=8.33
Q=9-0.3*8.33
Q=6.5
-----------
inverting demand curve to inverse form to find Y-intercept of the demand curve
Q=9-0.3P
0.3P=9-Q
P=9/.3 -(1/0.3)*Q
P=30-(1/0.3)*Q
the Y-axis intercept is 30
----------
CS=0.5*(Y-intercept of the demand curve -P)*Q
=0.5*(30-8.33333)*6.5
=$70.4166775
the consumer surplus is 70.42
For a perfectly competitive market, daily demand for a good is given by P-10-Q, where P...
For a perfectly competitive market, daily demand for a good is given by P-10-Q, where P ¡s price and Q is quantity. Supply is given by P = 2 + Q. Suppose the government imposes an excise tax of $2 on sellers in the market. (An excise tax is a tax per unit.) (a) What is the original (before the tax) producer surplus and (b)new (after the tax) producer surplus?
Suppose that in a perfectly competitive market, demand is given by Q=59.0-P and supply is given...
Suppose that in a perfectly competitive market, demand is given by Q=59.0-P and supply is given by Q=P-28.0. The government imposes a per-unit excise tax of $1 on the good. What is consumer surplus after that tax is imposed? No units, no rounding.
Question 3 (1 point) Suppose that in a perfectly competitive market, demand is given by Q-70.0-P...
Question 3 (1 point) Suppose that in a perfectly competitive market, demand is given by Q-70.0-P and supply is given by Q-P-18.0. The government imposes a per-unit excise tax of $1 on the good. What is the tax revenue collected by the government? No units, no rounding. Your Answer: Your Answer Question 4 (1 point) Suppose that in a perfectly competitive market, demand is given by Q-75.0-P and supply is given by Q-P-26.0. The government imposes a per-unit excise tax...
Question 5 (1 point) Suppose that in a perfectly competitive market, demand is given by Q...
Question 5 (1 point) Suppose that in a perfectly competitive market, demand is given by Q 56.0-P and supply is given by Q=P-13.0. The government imposes a per-unit excise tax of $1 on the good. What is producer surplus after the tax is imposed? No units, no rounding. Your Answer: Your Answer Question 6 (1 point) Suppose that in a perfectly competitive market, demand and supply are given by 100 bP QS P- 20 where b-1.0. The government imposes a...
Question 4 (1 point) Suppose that in a perfectly competitive market, demand is given by Q-69.0-P...
Question 4 (1 point) Suppose that in a perfectly competitive market, demand is given by Q-69.0-P and supply is given by Q=P-20.0. The government imposes a per-unit excise tax of $1 on the good. What is consumer surplus after that tax is imposed? No units, no rounding. Your Answer: Your Answer
Question 4 (1 point) Suppose that in a perfectly competitive market, demand is given by Q=78.0-P...
Question 4 (1 point) Suppose that in a perfectly competitive market, demand is given by Q=78.0-P and supply is given by Q=P-30.0. The government imposes a per-unit excise tax of $1 on the good. What is consumer surplus after that tax is imposed? No units, no rounding. Your Answer: Your Answer
Suppose that in a perfectly competitive market, demand is given by Q=58.0-P and supply is given...
Suppose that in a perfectly competitive market, demand is given by Q=58.0-P and supply is given by Q=P-27.0. The government imposes a per-unit excise tax of $1 on the good. What is producer surplus after the tax is imposed? No units, no rounding.
Question 1 (1 point) Suppose that in a perfectly competitive market, demand is given by Q=54.0-P...
Question 1 (1 point) Suppose that in a perfectly competitive market, demand is given by Q=54.0-P and supply is given by Q=P-36.0. What is aggregate surplus in the competitive market equilibrium? No units, no rounding. Your Answer: Your Answer View hint for Question 1 Question 2 (1 point) Suppose that in a perfectly competitive market, demand is given by Q=71.0-P and supply is given by Q=P-31.0. The government imposes a per-unit excise tax of $1 on the good. What is...
Suppose that in a perfectly competitive market, demand is given by Q=63.0-P and supply is given...
Suppose that in a perfectly competitive market, demand is given by Q=63.0-P and supply is given by Q=P-9.0. What is aggregate surplus in the competitive market equilibrium? No units, no rounding.
Suppose that market demand for a good is given by QD(P) = 10−P. The total cost...
Suppose that market demand for a good is given by
QD(P) = 10−P. The total cost of production is TC(Q) =
2Q2. Determine quantity QM and price
PM that a monopolist will choose in this market.
Calculate consumer surplus (CS), producer surplus (PS), and the
deadweight loss (DWL) resulting from the monopoly. Graphical
Solution would suffice!
1) (25 points) Suppose that market demand for a good is given by Q”(P) - 10-P. The total cost of production is TCQ) =...
For a perfectly competitive market, daily demand for a good is given by P-10-Q, where P ¡s price and Q is quantity. Supply is given by P = 2 + Q. Suppose the government imposes an excise tax of $2 on sellers in the market. (An excise tax is a tax per unit.) (a) What is the original (before the tax) producer surplus and (b)new (after the tax) producer surplus?
Question 3 (1 point) Suppose that in a perfectly competitive market, demand is given by Q-70.0-P and supply is given by Q-P-18.0. The government imposes a per-unit excise tax of $1 on the good. What is the tax revenue collected by the government? No units, no rounding. Your Answer: Your Answer Question 4 (1 point) Suppose that in a perfectly competitive market, demand is given by Q-75.0-P and supply is given by Q-P-26.0. The government imposes a per-unit excise tax...
Question 5 (1 point) Suppose that in a perfectly competitive market, demand is given by Q 56.0-P and supply is given by Q=P-13.0. The government imposes a per-unit excise tax of $1 on the good. What is producer surplus after the tax is imposed? No units, no rounding. Your Answer: Your Answer Question 6 (1 point) Suppose that in a perfectly competitive market, demand and supply are given by 100 bP QS P- 20 where b-1.0. The government imposes a...
Question 4 (1 point) Suppose that in a perfectly competitive market, demand is given by Q-69.0-P and supply is given by Q=P-20.0. The government imposes a per-unit excise tax of $1 on the good. What is consumer surplus after that tax is imposed? No units, no rounding. Your Answer: Your Answer
Question 4 (1 point) Suppose that in a perfectly competitive market, demand is given by Q=78.0-P and supply is given by Q=P-30.0. The government imposes a per-unit excise tax of $1 on the good. What is consumer surplus after that tax is imposed? No units, no rounding. Your Answer: Your Answer
Question 1 (1 point) Suppose that in a perfectly competitive market, demand is given by Q=54.0-P and supply is given by Q=P-36.0. What is aggregate surplus in the competitive market equilibrium? No units, no rounding. Your Answer: Your Answer View hint for Question 1 Question 2 (1 point) Suppose that in a perfectly competitive market, demand is given by Q=71.0-P and supply is given by Q=P-31.0. The government imposes a per-unit excise tax of $1 on the good. What is...
Suppose that market demand for a good is given by
QD(P) = 10−P. The total cost of production is TC(Q) =
2Q2. Determine quantity QM and price
PM that a monopolist will choose in this market.
Calculate consumer surplus (CS), producer surplus (PS), and the
deadweight loss (DWL) resulting from the monopoly. Graphical
Solution would suffice!
1) (25 points) Suppose that market demand for a good is given by Q”(P) - 10-P. The total cost of production is TCQ) =...
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