Question
In: Economics
Suppose the current equilibrium point for the market of good X is (200, $100). Also we...
Suppose the current equilibrium point for the market of good X is (200, $100). Also we know that ɛ = -2 . Suppose the government grants an unit subsidy of $3 on good X, calculate the cost to the government under each of the following situations.
i) The supply curve for good X is horizontal.
ii) The supply curve for good X is vertical.
Solutions
Rahul Sunny answered 2 years agoRelated Solutions
5. Suppose the current equilibrium point for the market of good X is (200, $100). Also...
5. Suppose the current equilibrium point for the market of good
X is (200, $100). Also we know that ɛ = -2 and n = 1.5 . Suppose
the government imposes an unit tax of $3/unit of the good.
Calculate the size of government revenue. [You are NOT allowed to
use the short cut formula.]
Suppose the current equilibrium point for the market of good for a closed economy is (200,...
Suppose the current equilibrium point for the market of good for
a closed economy is (200, $100). Also we know the ɛ = -2
and n = 1.5 at the equilibrium point. Suppose the economy is now
open to trade. Let $110 Pw = $110 .
a) What is the domestic price?
b) What is the size of the export?
Suppose that the market for good X is free and competitive, where the equilibrium price and...
Suppose that the market for good X is free and competitive,
where the equilibrium price and quantity, are $30 per ton and 10
million tons per year, respectively. The producers of good X
complain to the government that the current market price is too low
to provide them with sufficient income, and they want the
government to set a price floor of $40 per ton and to purchase all
resulting surplus in order to guarantee that the price support is...
Suppose that market for good X is free and competitive, where the equilibrium price and quantity...
Suppose that market for good X is free and competitive,
where the equilibrium price and quantity are $30 per tops and 10
million tons per year respectively. The producers of good X
complain to the government that the current market price is too low
to provide them with sufficient income, and they want the
government to set a price floor of $40 per ton and to purchase all
resulting surplus in order to guarantee that the price support is
maintained....
Suppose that market for good X is free and competitive, where the equilibrium price and quantity...
Suppose that market for good X is free and competitive, where
the equilibrium price and quantity are $30 per tops and 10 million
tons per year respectively. The producers of good X complain to the
government that the current market price is too low to provide them
with sufficient income, and they want the government to set a price
floor of $40 per ton and to purchase all resulting surplus in order
to guarantee that the price support is maintained....
Suppose the market supply for Good X is given by QXS = -100 + 5PX. Compute...
Suppose the market supply for Good X is given by
QXS = -100 + 5PX. Compute and
illustrate with completely labelled diagram the producer surplus if
the equilibrium price of X is $100 per unit (show the relevant
calculation).
The daily market demand and supply for chicken in Kuala Lumpur
is given by:
Qd= 16,000 – 1,000P
Qs= 2,000 + 1,000P
The quantity and price are measured in
tonnes and RM, respectively.
Determine the equilibrium quantity and price in the...
Suppose the market supply for Good X is given by QXS = -100 + 5PX. Compute...
Suppose the market supply for Good X is given by
QXS = -100 + 5PX. Compute and
illustrate with completely labeled diagram the producer surplus if
the equilibrium price of X is $100 per unit (show the relevant
calculation).
The daily market demand and supply for chicken in Kuala Lumpur
is given by:
Qd= 16,000 – 1,000P
Qs= 2,000 + 1,000P
The quantity and price are measured in
tonnes and RM, respectively.
Determine the equilibrium quantity and price in...
Demand for good X is X = 100 – 4P, where P is the market price...
Demand for good X is X = 100 – 4P, where P is the market price
of X. A monopolist supplies this market and has a cost function
5X.
When the monopolist produces his optimal level of X, what is the
resulting deadweight loss in the economy?
Could you draw the graph with curves?
(a.) $180
(b.) $200
(c.) $222
(d.) $285
The Scenario : Suppose that the market for good X is small in Malaysia and in...
The Scenario :
Suppose that the market for good X is small in Malaysia and in
Thailand , relative to the world market for good X . Both these
markets are currently open to free trade . Suppose also that ,
relative to the rest of the world , Malaysia has a comparative
advantage in producing good X whilst Thailand has a comparative
disadvantage in producing good X. Malaysian consider good X a
normal good , whereas Thais consider good...
The Scenario : Suppose that the market for good X is small in Malaysia and in...
The Scenario :
Suppose that the market for good X is small in Malaysia and in
Thailand , relative to the world market for good X . Both these
markets are currently open to free trade . Suppose also that ,
relative to the rest of the world , Malaysia has a comparative
advantage in producing good X whilst Thailand has a comparative
disadvantage in producing good X. Malaysian consider good X a
normal good , whereas Thais consider good...
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