Suppose here is the equations of demand and supply: Qd = 1,600 - 125P Qs =...

Suppose here is the equations of demand and supply: Qd = 1,600 - 125P Qs = 440 + 165P Quantities are measured in units; prices are measured in dollars per unit. (4 points) A. Calculate the equilibrium price and quantity and draw the market equilibrium curve. B. Calculate consumer and producer surplus at the equilibrium price and quantity. Show the area of consumer and producer surplus. (10 points) C. The government currently wants to impose minimum price of $6 per unit. What is the effect of this policy on consumer and producer surplus? (6 points

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Rahul Sunny answered 2 years ago

Suppose the market for corn is given by the following equations for supply and demand: QS = 2p − 2 QD = 13 − p

Suppose the market for corn is given by the following equations for supply and demand: QS = 2p − 2 QD = 13 − p where Q is the quantity in millions of bushels per year and p is the price. Calculate the equilibrium price and quantity. Sketch the supply and demand curves on a graph indicating the equilibrium quantity and price. Calculate the price-elasticity of demand and supply at the equilibrium price/quantity. The government judges the...

The demand and supply equations for a product are given by QD = 20-P QS = -10 +2P

The demand and supply equations for a product are given by QD = 20-P QS = -10 +2P 1. Calculate the equilibrium price and quantity. 2. Calculate the price elasticity of demand and the price elasticity of supply at the above equilibrium point. 3. An excise tax of $1 per unit is imposed on the producers of the product. Calculate the new equilibrium price and quantity. Calculate the consumer and producer tax burden ( as a percentage of...

Consider the following demand and supply equations for sugar: Qd = 1,000 -1,000P Qs = 800...

Consider the following demand and supply equations for sugar: Qd = 1,000 -1,000P Qs = 800 + 1,000P where P is the price of sugar per pound and Q is thousands of pounds of sugar. a. What are the equilibrium price and quantity for sugar? At the same equilibrium price, compute the consumer surplus. b. Suppose that the government wishes to subsidize sugar production by placing a floor on sugar prices of $0.20 per pound. How much will the government...

Suppose the demand function is QD = 20.8 – 2.5P, and the supply function is QS...

Suppose the demand function is QD = 20.8 – 2.5P, and the supply function is QS = 3.5P − 5. What is the market clearing price? Group of answer choices $2.50 $3.50 $4.30 $5.50

Suppose demand and supply are given by Qd = 50 - P and Qs = 1.0P -...

Suppose demand and supply are given by Qd = 50 - P and Qs = 1.0P - 20. a. What are the equilibrium quantity and price in this market? Equilibrium quantity: ______________ Equilibrium price: $ ___________________ b. Determine the quantity demanded, the quantity supplied, and the magnitude of the surplus if a price floor of $44 is imposed in this market. Quantity demanded: ______________ Quantity supplied: ______________ Surplus: ________________ c. Determine the quantity demanded, the quantity supplied, and the magnitude of...

Suppose the demand and supply for a product are described by the equations Qd = 1080...

Suppose the demand and supply for a product are described by the equations Qd = 1080 -4P and Qs = -120+8P. a. Find the equilibrium P, Q and elasticities of demand and supply b. If a $6 per unit tax is levied on the demand for the product, find new P, Q and the percent of the tax incidence that falls on consumers and firms. c. Find the tax revenue and welfare loss associated with the tax. d. Now double...

10. Suppose the domestic supply (QS) and demand (QD) for skateboards in the United States are...

10. Suppose the domestic supply (QS) and demand (QD) for skateboards in the United States are given by the following set of equations: QS = –60 + 3P QD = 390 – 2P In the absence of trade with the rest of the world, the consumer surplus in the United States skateboard market equals _____ and the producer surplus equals_____. a. $7,050; $11,525 b. $31,500; $9,450 c. $20,474; $7,350 d. $11,025; $7,350 11. Suppose the domestic supply (QS) and demand...

Suppose the demand function for corn is Qd = 10-2p, and supply function is Qs =...

Suppose the demand function for corn is Qd = 10-2p, and supply function is Qs = 3p-5. The government is concerned that the market equilibrium price of corn is too low and would like to implement a price support policy to protect the farmers. By implementing the price support policy, the government sets a support price and purchases the extra supply at the support price and then gives it away to the consumers free. The government sets the support price...

4. Suppose the market demand and supply functions are QD = 180 – 1.5P and QS...

4. Suppose the market demand and supply functions are QD = 180 – 1.5P and QS = 3.5P + 40. You have just graduated and moved to this city; as a new MBA and an entrepreneur, you are considering entering the market for this product. a. Determine the equilibrium price and quantity in this market. b. You’ve researched and found that most firms in the market currently experience costs such that TC = 15 + 45Q – 10Q2 + 1.5Q3....

Suppose that the market demand and supply for milk is given by Qd =120−6P and Qs...

Suppose that the market demand and supply for milk is given by Qd =120−6P and Qs = 12P − 60 a. Find the market equilibrium quantity, and the equilibrium price. (5 points) b. Determine the quantity demanded, the quantity supplied, and the magnitude of the surplus (or shortage) if a price floor of $8 is imposed in this market. (5 points) c. Determine the quantity demanded, the quantity supplied, and the magnitude of the surplus (or shortage) if a price...

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