ZuoTi.Pro
Question

2.2 The invers e demand function of a group of consumers for a given type of widgets is given by the following expression: π-10a + 2000 ($) where q is the demand and r is the unit price for this product. a Determine the maximum consumption of these consumers. b Determine the price that no consumer is prepared to pay for this product. c Determine the maximum net consumers surplus. Explain why the consumer will not be able to realize this surplus.

Fundamentals of Power System EcoHon consumers g surplus, the revenue collected by the producers, and the consumer e If the price increases by 20%, calculate the change in consumption and d For a price π of 1000 $/unit, calculate the consumption, the cons rs net surplus. change in the revenue collected by the producers. f What is the price elasticity of demand for this product and this group of consumers when the price π is 1000 $/unit. g Derive an expression for the gross consumers surplus and the net consumers surplus as a function of the demand. Check these expressions using the results of part d. h Derive an expression for the net consumers surplus and the gross consumers surplus as a function of the price. Check these expressions using the results of part d.

business   economics   
0 0
Add a comment Improve this question Transcribed image text
Next > < Previous
Sort answers by oldest

Homework Answers

Answer #1

fi 2.2 (b) thon T)--109-t2000. / T): 2000 Cunve bove thi demand curn not ie abt lo ualse this Auplusah pe dota ingoned.co ConsumeんAusplun : 100x1000 xo.r s t00000Please Kindly help with Thumbs up vote for this answer. If any doubts feel free to query. Thank you

1 2
Add a comment
Know the answer?
Add Answer to:
2.2 The invers e demand function of a group of consumers for a given type of...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions

  • 2.2 The inverse demand function of a group of consumers for a given type of widgets...

    2.2 The inverse demand function of a group of consumers for a given type of widgets is given by the following expression: 11-10a + 2000 ($) where q is the demand and r is the unit price for this product. a Determine the maximum consumption of these consumers. b Determine the price that no consumer is prepared to pay for this product. c Determine the maximum net consumers' surplus. Explain why the consumers will not be able to realize this...

  • § The inverse demand function of a group of consumers for a given type of goods is given by the following: ! = −10& + 2000 [$] where q is the demand and ! is the unit price for this product. 1) For a price of 1000 $/unit, calculate the consumption, the co

    § The inverse demand function of a group of consumers for a given type of goods is given by the following: ! = −10& + 2000 [$] where q is the demand and ! is the unit price for this product. 1) For a price of 1000 $/unit, calculate the consumption, the consumers’ gross surplus, the revenue collected by the producers and the consumers’ net surplus. 2) If the price increases by 20%, calculate the change in consumption and the...

  • The inverse demand function of a group of consumers for a given type of widgets is...

    The inverse demand function of a group of consumers for a given type of widgets is given by the following expression: 2.2 π=-104 + 2000 (S) 2.3 2.4 and 2.5 Economists estimate that the supply function for the widget market is given by the following expression: 2.3 4-0.2--40 a Calculate the demand and price at the market equilibrium if the demand is as defined in Problem 2.2 b For this equilibrium, calculate the consumers' gross surplus, the consumers' net surplus,...

  • 2.4) Calculate the effect on the market equilibrium of Problem 2.3 of the following interventions: a...

    2.4) Calculate the effect on the market equilibrium of Problem 2.3 of the following interventions: a A minimum price of $900 per widget b A maximum price of $600 per widget c A sales tax of $450 per widget. In each case, calculate the market price, the quantity transacted, the consumens' net surplus, the producers' profit, and the global welfare. Illustrate your calcula tions using diagrams. Calculate the deadweight loss compared to the results of Problem 2.3. Summarize your results...

  • 1000 and the demand function is given by Da)+7 Completeparts a Suppose the supply function for...

    1000 and the demand function is given by Da)+7 Completeparts a Suppose the supply function for a certain item is given by S()+7 through d below a. Graph the supply and demand curves. Choose the correct graph below ○ A. с. Ов. 10 10 10 10 14 14 14 14 b. Find the point at which supply and demand are in equilibrium. The equilibrium point is (Type an ordered pair. Simplify your answer.) c. Find the consumers' surplus The consumers'...

  • The demand and supply conditions of market for beer are given by the following equations: Qd...

    The demand and supply conditions of market for beer are given by the following equations: Qd = 72 - P and Qs = -18 + P a) Find the initial equilibrium price and quantity. b) Calculate the consumer surplus and producer surplus for the equilibrium. c) Suppose that government impose a price floor at P=66 to control the consumption of beer. Is this policy effective? What are price and quantity consumed after this intervention of government? d) Going back to...

  • Suppose market demand for bread is given by the equation QD = 12-P while the market...

    Suppose market demand for bread is given by the equation QD = 12-P while the market supply equation is Qs = 2P. a. Calculate the equilibrium price and quantity, consumer surplus, and producer surplus in the market for tires. Graph your results. b. Suppose the government imposes a tax on tire producers of $3 per tire. i. What price will the buyer pay? What is the burden to consumers? What amount per unit will the seller receive? What is the...

  • B) Find the point at which the supply & demand are in equalibrium. (type in as...

    B) Find the point at which the supply & demand are in equalibrium. (type in as ordered pair) C) Find the consumer consumers surplus D) Find the producers surplus The supply function for oil is given (in dollars) by S(q), and the demand function is given (in dollars) by D(q). s(q) = q2 + 12q, D(q) = 1054 – 16q-q? a. Graph the supply and demand curves. Choose the correct graph. S(q) is the solid line, and D(q) is the...

  • Consumers' Surplus The demand function for a certain make of replacement cartridges for a water purifier...

    Consumers' Surplus The demand function for a certain make of replacement cartridges for a water purifier is given by the following equation where p is the unit price in dollars and x is the quantity demanded each week, measured in units of a thousand. p - -0.01x? -0,3x + 41 Determine the consumers' surplus if the market price is set at $1/cartridge (Round your answer to two decimal places.) $ 0.16 X Need Help? Read it Talk to a Tutor...

  • 3. Consumer surplus for a group of consumers The following graph shows the demand curve for...

    3. Consumer surplus for a group of consumers The following graph shows the demand curve for a group of consumers in the U.S. market (blue line) for laptops. The market price of a laptop is shown by the black horizontal line at $90 Each rectangle you can place on the following graph corresponds to a particular buyer in this market: orange (square symbols) for Alex, green (triangle symbols) for Becky, purple (diamond symbols) for Clancy, tan (dash symbols) for Eileen,...

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT