Suppose the inverse demand and inverse supply functions for a good are given as P= 200-0.5Q...

Suppose the inverse demand and inverse supply functions for a good are given as P= 200-0.5Q

and P= 20 + 0.5 Q.

Calculate the initial equilibrium price and quantity.

Draw the above inverse demand and inverse supply functions.

Suppose a per unit tax of $10.00 was levied on sellers. Determine graphically and algebraically the effect of the tax on the price paid by demanders, the price received by sellers, the total tax paid, and the fraction of the tax paid by buyers and the fraction paid by sellers.

Expert Solution

ekkarill92 answered 1 year ago

Suppose a firm's inverse demand curve is given by P = 120 - 0.5Q and its cost equation is

Suppose a firm's inverse demand curve is given by P = 120 - 0.5Q and its cost equation isC = 420 + 60Q + Q2.Find the firm's optimal Q, P, and π two ways…first, by using the profit and marginal profit equations and then by setting MR = MC. Also, provide an Excel-created graph of the demand curve, MR curve, and MC curve (please do the excel graphs).Suppose instead that the firm can sell any and all of its output...

4. The inverse demand for leather is given by P = 50 - 0.5Q. The industry...

4. The inverse demand for leather is given by P = 50 - 0.5Q. The industry supply of leather is determined by its marginal cost: MC = 0.45Q. Unfortunately, the production of leather causes noxious chemical residue to leach into groundwater supplies. The marginal external cost caused by these residues grows with the amount of output, and is measured as MEC = 0.05Q. a ) Suppose that the government wishes to reduce the externality to efficient levels by imposing a...

Supply Demand MC = P = 20 + 0.5Q MB = P = 200 – Q...

Supply Demand MC = P = 20 + 0.5Q MB = P = 200 – Q 6. Suppose the government observes the market described above and passes a rule that production in the industry cannot exceed 100 units. This would be an example of what type of policy approach? 7. Suppose instead the government decided to charge an emissions fee of $20. Why might policymakers prefer a fee over a simple decree that production cannot exceed 100 units? 8. Suppose...

Let the demand and supply functions for widgets be given by the following: P = 200-4.5Qd...

Let the demand and supply functions for widgets be given by the following: P = 200-4.5Qd P = 100+20Qs a) Solve the market equilibrium price and quantity for widgets b) Calculate the supply and own-price demand elasticities for widgets c) Interpret the elasticities in your own work d) If the price of widgets went up by 20%, what will happen to the quantity demanded and supplied in the market? Is this an equilibrium? Why or Why not? Thank you

The inverse demand function for a medication is p = 10000 - 0.5Q, where p is...

The inverse demand function for a medication is p = 10000 - 0.5Q, where p is the market price and Q is quantity demanded MC = 100 + 0.05Q. What is the competitive market price and quantity in this market, and producer and consumer surplus and social welfare? Suppose production creates an externality. You can assume marginal external costs are simply MEC = 400. Based on this information, what is your estimate for a regulated market outcome where marginal social...

Suppose that, in the market for strawberries, domestic demand is given by P= 40 – 0.5Q,...

Suppose that, in the market for strawberries, domestic demand is given by P= 40 – 0.5Q, and domestic supply is given by P = 0.5Q, where Q represents tonne of strawberry. Further, suppose that the world price of strawberry is $5 per tonne, and the government decides to place a $10 per tonne import tariff on strawberries. A. On a graph, demonstrate the effect of the tariff on the equilibrium quantity of imports. (Clearly label the values both with and...

The demand function for a good is Q=1200-P while the supply functions is Q=-200+P. World price...

The demand function for a good is Q=1200-P while the supply functions is Q=-200+P. World price is $300 and the nation is is imposing a quota of 200 units. a. Graph the demand and supply function to scale and label axis and intercepts. b. Determine the quantity demanded before and after the quota. c. Determine the quantity supplied before and after the quota. d. Determine the quantity imported before and after the quota. e. Determine the consumer surplus before and...

2. The inverse demand curve of a monopolist is given by: P = 200 −...

2. The inverse demand curve of a monopolist is given by: P = 200 − Q and the marginal cost is constant at $10, how does charging the monopoly a specific tax of τ=$12 per unit affect the monopoly optimum and the welfare of consumers, the monopoly, and society (where society's welfare includes the tax revenue)? Calculate the following: equilibrium price and quantity before the tax equilibrium price and quantity after the tax the change in consumer surplus the...

Suppose demand for apartments in Honolulu is P=6600-0.5q and supply is P=0.25q. a.) Derive the equilibrium...

Suppose demand for apartments in Honolulu is P=6600-0.5q and supply is P=0.25q. a.) Derive the equilibrium price and quantity for apartments. Show on a graph. Calculate the producer and consumer surplus. b.) If the city of Honolulu passes a rent control, forcing a rent (or price) ceiling equal to $1800, what is the quantity supplied, quantity demanded, and the shortage? Calculate the new consumer surplus, producer surplus, and deadweight loss, and show these on your graph. c.) If a black...

Supply-Demand analysis Let the inverse market demand and supply curves for an arbitrary good be given...

Supply-Demand analysis Let the inverse market demand and supply curves for an arbitrary good be given by ?(??) = ? − ??? and ?(?? ) = ? + ??? , respectively, where ?? (conversely, ?? ) denotes quantity demanded (conversely, quantity supplied) and all lower-case Greek letters denote positive parameters such that ? > ??? > 0 and ? > ? (a) Solve for the market equilibrium price (? ∗ ) and quantity (? ∗ ) and show this solution...

Question