Question

In: Economics

The demand and supply for Fuji apples are given by QD = 17,500 - 25 P...

The demand and supply for Fuji apples are given by QD = 17,500 - 25 P and QS = 10 P, where P is price per pound and Q is pounds of apples. What is the consumer surplus and producer surplus at the equilibrium?

A.

CS = $500,000; PS = $1,250,000
B.

CS = $750,000; PS = $1,250,000
C.

CS = $500,000; PS = $750,000
D.

CS = $1,250,000; PS = $500,000

The market for plywood is characterized by the following demand and supply equations: QD = 12,000 – 120 P and QS = 40 P, where P is the price per sheet of plywood and Q measures the quantity of plywood.

What is the size of the deadweight loss if the government imposes a price ceiling of $54 per sheet of plywood?

A.

$10,460
B.

$11,760
C.

$8,975
D.

$12,220

The demand and supply of iPhones in Texas is given by QD = 15,000 – 15 P and QS = 5 P-500, where P is the price per phone and Q is number of phones (in thousands).

If the Texas government levies a $10/unit tax on buyers, what is the size of the deadweight loss?

A.

$187,500
B.

$183,500
C.

$199,500
D.

$192,500

Solutions

Expert Solution

Rahul Sunny answered 9 months ago
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