Question
In: Economics
The demand function for a commodity is described in terms of an equation: Px = -Qdx...
The demand function for a commodity is described in terms of an
equation:
Px = -Qdx + 35, while the offering function Px = 0.5Qsx + 3. Taxes
are subject to 30$ of the commodity. Determine also if the
government provides
subsidy of 2$ for each unit of goods
a. What is the equilibrium price and the equilibrium quantity
that occurs in the market
b. What is the equilibrium price and the equilibrium quantity
before tax?
c. What is the equilibrium price and the equilibrium quantity after
tax?
d. What is the equilibrium price and the equilibrium quantity
before and after there are subsidies
Solutions
Rahul Sunny answered 1 year agoRelated Solutions
The estimated demand function for commodity X is described by the following equation: ^ Qd =...
The estimated demand function for commodity X is described by
the following equation:
^
Qd = 50 – 2Px + 1.5 In - 0.75 Py
where Px = Price of commodity X
In = Consumer Income
Py = Price of commodity Y
(a)Does the behavior of the consumer of this product follow
the law of demand? Explain
(b)Is commodity X a normal good or an inferior good? How did
you know?
(c)Comment on the relationship between commodity X and
commodity...
The estimated demand function for commodity X is described by the following equation: Qd = 50...
The estimated demand function for commodity X is described by
the following equation:
Qd = 50 – 2Px + 1.5 In - 0.75 Py
where Px = Price of commodity X
In = Consumer Income
Py = Price of commodity Y
(a)Does the behavior of the consumer of this product follow the
law of demand? Explain
(b)Is commodity X a normal good or an inferior good? How did you
know?
(c)Comment on the relationship between commodity X and commodity
Y....
If the demand for good X is QdX = 10 + aX PX + aY PY...
If the demand for good X is QdX = 10 +
aX PX + aY PY +
aMM. If M is the income and aM is positive,
then:
Goods y and x are complements
Good x is an interior good
Goods y and x are not related goods
Goods y and x are interior goods
Good x is a normal goods
Qdx = 2500 - 0.5 Px + 0.75 Py + 2.0 I, given that Px =...
Qdx = 2500 - 0.5 Px + 0.75 Py + 2.0 I, given that Px = $ 400, Py
= $ 200 and I = $ 1500
Question:
a.Calculate the price elasticity for good X and what is the
economic meaning of the number, explain!
b. Calculate the cross elasticity between goods X and Y and the
income elasticity of good X and what is the economic meaning of the
number, just put!
c. If the price of goods X...
The demand function for your brand X shirts is estimated as Qdx = 1,000 - 5...
The demand
function for your brand X shirts is estimated as
Qdx = 1,000 - 5
Px - 10 Py + 9 PZ+ 0 .001 I
The price of X is
$ 10, Y is $ 4, Z is $ 10 and incomes are $ 20,000.
1) What are your
sales?
______________
2) What is the
elasticity of demand for
X?
_______________
3) What is the
cross elasticity between X and Y?
______________
4) Are...
Suppose that a consumer has the following demand function: x ∗ (px, py, m) = 3mpy/px...
Suppose that a consumer has the following demand function: x ∗
(px, py, m) = 3mpy/px . What type of good is good x? (Remember, m
> 0, px > 0, py > 0)
(a) ordinary, complement, normal
(b) ordinary, complement, inferior
(c) inelastic, substitute, inferior
(d) ordinary, substitute, normal
Assume that demand for a commodity is represented by the equation P = 10 – 0.2...
Assume that demand for a commodity is represented by the
equation P = 10 – 0.2 Q d, and supply by the equation P = 5+ 0.2 Qs
where Qd and Q s are quantity demanded and quantity supplied,
respectively, and P is the Price. Use the equilibrium condition Qs
= Qd a. Solve the equations to determine equilibrium price b. Now
determine the equilibrium quantity c. Graph the two equations to
substantiate your answers and label these two graphs...
Assume that demand for a commodity is represented by the equation P = 10 – 0.2...
Assume that demand for a commodity is represented by the
equation P = 10 – 0.2 Qd, and supply by the equation P = 5 + 0.2 Qs
where Qd and Q s are quantity demanded and quantity supplied,
respectively, and P is the Price. Use the equilibrium condition Qs
= Qd , 1: Solve the equations to determine equilibrium price. 2:
Now determine equilibrium quantity. 3: Graph the two equations to
substantiate your answers and label these two graphs...
Assume that demand for a commodity is represented by the equation P = 20 – 0.6...
Assume that demand for a commodity is represented by the
equation P = 20 – 0.6 Q d, and supply by the equation P = 10 + 0.2
Qs where Qd and Q s are quantity demanded and quantity supplied,
respectively, and P is the Price. Use the equilibrium condition Qs
= Qd
1: Solve the equations to determine equilibrium price.
2: Now determine equilibrium quantity.
3: Graph the two equations to substantiate your answers and
label these two graphs...
Suppose the market demand for a commodity is given by the download sloping linear demand function:...
Suppose the market demand for a commodity is given by the
download sloping linear demand function:
P(Q) = 3000 - 6Q
where P is a price and Q is quantity. Furthermore, suppose the
market supply curve is given by the equation:
P(Q) = 4Q
a) Calculate the equilibrium price, quantity, consumer surplus
and producer surplus.
b) Given the equilibrium price calculated above (say's P*),
suppose the government imposes a price floor given by P' > P*.
Pick any such P'...
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