In: Economics
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 |