1. When the equilibrium price is 30 and equilibrium quantity is 2000. Intercept of Supply curve in the p axis is 10 and intercept of Demand curve in the p axis is 60. a) Draw the graph of equilibrium...
1. When the equilibrium price is 30 and equilibrium quantity is 2000. Intercept of Supply curve in the p axis is 10 and intercept of Demand curve in the p axis is 60.
a) Draw the graph of equilibrium and label the equilibrium price, equilibrium quantity, consumer surplus, producer surplus and total surplus in the graph.
b) Calculate consumer surplus, producer surplus and total surplus.
c) Explain which buyers consume the good and which producers sell the good inthe equilibrium situation.
d) Explain why does the equilibrium quantity maximize the total surplus, combined the graph and formula.
e) Explain the free market system versus government intervention.
f) Why do we need consist on market system. rather than the central planning economy, although the experiences prove that the market system has some shortcomings.
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1. When the equilibrium price is 30 and equilibrium quantity is 2000. Intercept of Supply curve in the p axis is 10 and intercept of Demand curve in the p axis is 60. a) Draw the graph of equilibrium...
Identify the Surpluses. The graph to the right shows a supply curve and a demand curve...
Identify the Surpluses. The graph to the right shows a supply curve and a demand curve and several areas in between. Identify the areas on the figure that represent the following: Consumer and producer surplus a. Consumer surplus in the market equilibrium: b. Producer surplus in the market equilibrium: 18 c. Total surplus in the market equilibrium: Price Supply d. Consumer surplus when the price is $6 V e. Producer surplus when the price is $6: V Demand price is...
This problem involves solving demand and supply equations todetermine equilibrium Price and Quantity and then...
This problem involves solving demand and supply equations to determine equilibrium Price and Quantity and then illustrating them graphically.Consider a demand curve of the form : QD= -3P + 45 where QD is the quantity demanded and P is the price of the good.The supply curve for the same good is: QS= P-5 where QS is the quantity supplied at price, P. Solve for equilibrium Price (P*) and Quantity (Q*). Please set up the problem and underline your answers below....
Suppose that the demand curve for organic tomatoes is Q = 120-10p, and the supply curve...
Suppose that the demand curve for organic tomatoes is Q = 120-10p, and the supply curve is Q=10p. The government imposes a price control of p = 4. (a) Without government intervention, what is the equilibrium price and quantity? (b) Without government intervention, what is the consumer surplus, producer surplus, and deadweight loss? Use a graph in your calculations. (c) Is the price control a price ceiling or price floor? Why? With the price control, what is the new equilibrium...
The following graph shows the supply of (orange curve) and demand for (blue curve) computer keyboards....
The following graph shows the supply of (orange curve) and demand for (blue curve) computer keyboards. Determine the equilibrium price and quantity of computer keyboards. Based on this, use the green triangle (triangle symbols) to shade the area representing consumer surplus at the equilibrium price. Then use the purple triangle (diamond symbols) to shade the area representing producer surplus at the equilibrium price. 250 T 225 Demand Consumer Surplus Producer Surplus PRICE (Dollars per keyboard) Supply 0 Ft 0 5...
a. Draw supply curve and demand curve for vitamins, with the equilibrium price at $13.00 per...
a. Draw supply curve and demand curve for vitamins, with the equilibrium price at $13.00 per bottle, and show the consumer surplus and producer plus when the market price is at the equilibrium. b. Suppose that the government believe that this price is too high to promote good health among its citizens, and installs a price ceiling of $10.00 per bottle. Show the effect of this policy on consumer and producer surplus, and label any deadweight loss created by the...
1) Supply and demand P = 0.5QS + 30 P = -0.4QD + 120 a) Given...
1) Supply and demand P = 0.5QS + 30 P = -0.4QD + 120 a) Given the above equations, produce a chart illustrating both the supply and demand schedules in increments of 5 ranging from price = 50 to price = 110. b) Solve for the equilibrium price and quantity and show your work. c) Graph the result, labeling the axes, the supply and demand curves, the equilibrium point, and the price and quantity amounts. Use a proper scale. d)...
1. Given supply curve: P= 50; and demand curve: P= 150 - A. Calculate the consumer...
1. Given supply curve: P= 50; and demand curve: P= 150 - A. Calculate the consumer surplus if this market is in competitive equilibrium. B. Calculate the producer surplus if this market is in competitive equilibrium. c. What is the Total surplus if this market is in competitive equilibrium. D. Suppose the market price is $75, calculate the producer, consumer, and total surplus.
Q=100,000-10,000P solve for the consumer surplus at the equilibrium price and quantity Demand: Let the Market...
Q=100,000-10,000P solve for the consumer surplus at the
equilibrium price and quantity
Demand: Let the Market Demand curve for soybeans be given by the following equation: Q=100,000 -10,000P where the quantity of soybeans in kilograms P = the price of soybeans in dollars per kilogram. Supply: Let the Market Supply curve for soybeans be given by the equation: Q=-5,000+ 5,000P 3) Consumer Surplus: The Consumer Surplus (CS) is the triangular area under the demand curve and above the equilibrium price....
The supply and demand for broccoli are described by the following equations:
The supply and demand for broccoli are described by the following equations:Qs=4P-80 Qd=100-2Pwhere Q is the quantity of broccoli and P is its price.(a) Graph the supply curve and the demand curve.(b) What is equilibrium price and quantity?(c) Calculate consumer surplus, producer surplus, and total surplus at the equilibrium. Indicate consumer surplus and producer surplus on your diagram.(d) Suppose a dictator who hated broccoli was to tax the sellers of the vegetable. Explain what determines who bears the largest burden -...
1. Given supply curve: P-5Q; and demand curve: P- 150- Q А. Calculate the consumer surplus...
1. Given supply curve: P-5Q; and demand curve: P- 150- Q А. Calculate the consumer surplus if this market is in competitive equilibrium. В. competitive equilibrium. What is the Total surplus if this market is in Calculate the producer surplus if this market is in С. competitive equilibrium. D. Suppose the market price is $75, calculate the producer, consumer, and total surplus.
Identify the Surpluses. The graph to the right shows a supply curve and a demand curve and several areas in between. Identify the areas on the figure that represent the following: Consumer and producer surplus a. Consumer surplus in the market equilibrium: b. Producer surplus in the market equilibrium: 18 c. Total surplus in the market equilibrium: Price Supply d. Consumer surplus when the price is $6 V e. Producer surplus when the price is $6: V Demand price is...
The following graph shows the supply of (orange curve) and demand for (blue curve) computer keyboards. Determine the equilibrium price and quantity of computer keyboards. Based on this, use the green triangle (triangle symbols) to shade the area representing consumer surplus at the equilibrium price. Then use the purple triangle (diamond symbols) to shade the area representing producer surplus at the equilibrium price. 250 T 225 Demand Consumer Surplus Producer Surplus PRICE (Dollars per keyboard) Supply 0 Ft 0 5...
a. Draw supply curve and demand curve for vitamins, with the equilibrium price at $13.00 per bottle, and show the consumer surplus and producer plus when the market price is at the equilibrium. b. Suppose that the government believe that this price is too high to promote good health among its citizens, and installs a price ceiling of $10.00 per bottle. Show the effect of this policy on consumer and producer surplus, and label any deadweight loss created by the...
1. Given supply curve: P= 50; and demand curve: P= 150 - A. Calculate the consumer surplus if this market is in competitive equilibrium. B. Calculate the producer surplus if this market is in competitive equilibrium. c. What is the Total surplus if this market is in competitive equilibrium. D. Suppose the market price is $75, calculate the producer, consumer, and total surplus.
Q=100,000-10,000P solve for the consumer surplus at the
equilibrium price and quantity
Demand: Let the Market Demand curve for soybeans be given by the following equation: Q=100,000 -10,000P where the quantity of soybeans in kilograms P = the price of soybeans in dollars per kilogram. Supply: Let the Market Supply curve for soybeans be given by the equation: Q=-5,000+ 5,000P 3) Consumer Surplus: The Consumer Surplus (CS) is the triangular area under the demand curve and above the equilibrium price....
1. Given supply curve: P-5Q; and demand curve: P- 150- Q А. Calculate the consumer surplus if this market is in competitive equilibrium. В. competitive equilibrium. What is the Total surplus if this market is in Calculate the producer surplus if this market is in С. competitive equilibrium. D. Suppose the market price is $75, calculate the producer, consumer, and total surplus.
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