Question

In: Economics

Qd = 200 -5p Qs = -100 + 20P            Where: QD and QS are quantity demand...

Qd = 200 -5p

Qs = -100 + 20P           

Where: QD and QS are quantity demand and quantity supplied respectively, and P is the price.

At the market equilibrium price, producer surplus is equal to

Solutions

Expert Solution

The equilibrium price would be where the quantity demanded is equal to the quantity supplied, ie where or or or dollars. The quantity demanded at that price would be units, which is the equilibrium quantity.

The area below the supply curve is the cost, and the price times quantity is the revenue. The inverse supply is . Hence, the producer surplus would be or or or or or dollars.

This can be confirmed as in the graph below.

The PS is the area of triangle CBE, which is or or dollars.

Rahul Sunny answered 1 year ago
Next > < Previous

Related Solutions

Demand: Qd = 200 – 5P Supply: Qs = 5PIf a quantity tax of $2...
Demand: Qd = 200 – 5P Supply: Qs = 5PIf a quantity tax of $2 per unit sold is imposed,(a)Considering that the government will earn revenue, overall, do you think that the society benefits from the imposition of the tax? Explain.(b) Calculate the equilibrium market price and the equilibrium quantity sold.(c) Determine the demand and supply equation after the tax.(d) What will be the new equilibrium price paid by the buyers and the new price received by the supplier?(e) Calculate...
Given the following information: Demand: Qd = 200 – 5P Supply: Qs = 5P If a...
Given the following information: Demand: Qd = 200 – 5P Supply: Qs = 5P If a quantity tax of $2 per unit sold is imposed, (a)Considering that the government will earn revenue, overall, do you think that the society benefits from the imposition of the tax? Explain. (b) Calculate the equilibrium market price and the equilibrium quantity sold. (c) Determine the demand and supply equation after the tax. (d) What will be the new equilibrium price paid by the buyers...
Given the following information QD = 240-5P QS= P Where QD is the quantity demanded, Qs...
Given the following information QD = 240-5P QS= P Where QD is the quantity demanded, Qs is the quantity supplied and P is the price. Suppose the government decides to impose a tax of $12 per unit on sellers in this market. Determine the Demand and Supply equation after tax.
Given the following information, QD = 240-5P QS= P Where QD is the quantity demanded, Qs...
Given the following information, QD = 240-5P QS= P Where QD is the quantity demanded, Qs is the quantity supplied and P is the price. Suppose the government decides to impose a tax of $12 per unit on sellers in this market. Determine the total surplus after tax.
Demand: Qd=90-4P, where Qd is quantity demanded and P is price Supply: Qs=-100+15P, where Qs is...
Demand: Qd=90-4P, where Qd is quantity demanded and P is price Supply: Qs=-100+15P, where Qs is quantity supplied and P is price Recall that equilibrium price was 19, while quantity was 50. At that price, the price elasticity of demand was -0.80. Now I want you to rearrange each equation, putting P on the left-hand side, and solve again for equilibrium P and Q (you ought to get the same answer). Now we want to figure the monopoly price. Take...
Given the following information: Demand: Qd = 200 – 5P Supply: Qs = 5P If a quantity tax of $2 per unit sold is imposed
Given the following information:Demand: Qd = 200 – 5PSupply: Qs = 5PIf a quantity tax of $2 per unit sold is imposed,(a)Considering that the government will earn revenue, overall, do you think that thesociety benefits from the imposition of the tax? Explain.(b) Calculate the equilibrium market price and the equilibrium quantity sold.(c) Determine the demand and supply equation after the tax.(d) What will be the new equilibrium price paid by the buyers and the new pricereceived by the supplier?(e) Calculate...
If demand is :Qd = 850 - 15 P and supply is: Qs = 100 + 15 P Where: Qd = quantity of the good demanded. Qs = quantity of the good supplied.
  If demand is :Qd = 850 - 15 P and supply is: Qs = 100 + 15 P Where: Qd = quantity of the good demanded.            Qs = quantity of the good supplied.              P = price of the good. Part 1: The equilibrium price is ____________ Part 2: The equilibrium quantity is ____________ Part 3: An imposed price of 15 yields an excess __________ of ____________ units. Part 4: Assuming a change in consumer preference shifts the...
The demand and supply for a product is given by: Qd: 300-5P Qs: 3P-100 Suppose the...
The demand and supply for a product is given by: Qd: 300-5P Qs: 3P-100 Suppose the government imposes a tax T=$16 Calculate: A) Consumer surplus after tax B) Producer surplus after the tax C) Government Revenue D) Deadweight Loss
Given the following information QD = 240 - 5P QS = p where QD is the...
Given the following information QD = 240 - 5P QS = p where QD is the quantity demand, QS is the quantity supplied and P is the price. Find: a) Equilibrium price before the tax. b) Equilibrium quantity before the tax c) Buyers reservation price d)Seller's reservation price e) Consumer surplus before tax f)Producer surplus before tax
Given the following information QD = 240 - 5P QS = p where QD is the...
Given the following information QD = 240 - 5P QS = p where QD is the quantity demand, QS is the quantity supplied and P is the price. Suppose that the government decides to impose a tax $12 per unit on sellers in this market. Determine: a) Demand and supply equation after tax b) Buyer's price after tax c) Seller's price after tax d) Quantity after tax e) Consumer surplus after tax f) Producer surplus after tax g) Tax revenue...
ADVERTISEMENT
Subjects
ADVERTISEMENT
Latest Questions
ADVERTISEMENT