Assume that marker Demand is Qd = 3000 – 20P and Market Supply is Qs =...

Assume that marker Demand is Qd = 3000 – 20P and Market Supply is Qs = 10P. Show work (the equations you are solving) for full credit.

a. Determine EQM P and EQM Q.

b. Determine CS and PS.

Now assume that the government has decided to alter this market with a $15 subsidy to consumers.

c. How many units are now exchanged (the new EQM Q with the subsidy)

d. What is the price consumers now pay?

e. What is the new CS?

f. What is the price producers now receive?

g. What is the new PS?

h. What is the cost of the subsidy?

i. What is the DWL?

j. Interpret the DWL?

Solutions

Expert Solution

Rahul Sunny answered 1 year ago

Next > < Previous

Related Solutions

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

Suppose the market demand and supply functions are Qd= 32,000-20P and Qs=30P+750. You have just graduated...

Suppose the market demand and supply functions are Qd= 32,000-20P and Qs=30P+750. 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. TC=5000+1000Q-12Q^2+0.08Q^3. Determine whether or not you should enter this market. c. Due to unforeseen delays, you don’t enter the market. However, a year later the market supply has changed to Qs=30P+1500. Are...

Assume that the supply for a product is given by the function: Qs = 20P and...

Assume that the supply for a product is given by the function: Qs = 20P and the demand by Qd = 1000 - 5P, where P is the value and Q is the quantity of the product, respectively. (a) Calculate the value and quantity of equilibrium. (b) If the government decides to impose a tax of € 10, determine which curve will be moved and in which direction: i. if the tax is collected by consumers. ii. if the tax...

Market demand is given as Qd = 200 – P. Market supply is given as Qs...

Market demand is given as Qd = 200 – P. Market supply is given as Qs = 4P. a. Calculate equilibrium price and quantity a. If an excise tax of $4 per unit is imposed on sellers, calculate the price consumers pay Pc and the price sellers receive Ps. c. Also, calculate the dead weight loss and consumer surplus after the tax.

Market demand is given as QD = 50 – 2P. Market supply is given as QS...

Market demand is given as QD = 50 – 2P. Market supply is given as QS = 3P + 10. Each identical firm has MC = 2.5Q and ATC = 2Q. a. What quantity of output will a single firm produce? What is the price? b. Calculate each firm’s profit? What will happen to it in the long-run? Explain the process. c. Draw the individual demand, MR, supply and ATC curves. Show profit in the diagram

Market demand is given as QD = 300 – 6P. Market supply is given as QS...

Market demand is given as QD = 300 – 6P. Market supply is given as QS = 4P. Each identical firm has MC = 6Q and ATC = 3Q. What is a firm’s profit? Show your work

market demand is given as QD = 40 – P. Market supply is given as QS...

market demand is given as QD = 40 – P. Market supply is given as QS = 3P. Each identical firm has MC = 5Q and ATC = 3Q. What is the number of firms in the market?

Market demand is given as Qd = 200 – 3P. Market supply is given as Qs...

Market demand is given as Qd = 200 – 3P. Market supply is given as Qs = 2P + 100. In a perfectly competitive equilibrium, what will be price and quantity? Price will be $20 and quantity will be 140. Price will be $50 and quantity will be 260. Price will be $100 and quantity will be 300. Price will be $140 and quantity will be 380.

Suppose the market demand is QD = 200−P and market supply is QS = 4P−100. A....

Suppose the market demand is QD = 200−P and market supply is QS = 4P−100. A. Suppose the government imposes a tax of t = 5 on producers. What is the incidence of the tax on consumers? Producers? B. What is the deadweight loss of the tax?

Consider a perfectly competitive market with demand and supply Qd = 3360 – 4P and Qs...

Consider a perfectly competitive market with demand and supply Qd = 3360 – 4P and Qs = -240+6P a . Find the equilibrium price and quantity in the market. b. Now suppose we impose a tax of $20 per unit on the supplier. What is the new supply curve, including the tax? c. What are the new equilibrium price and quantity in the market with the tax? d. How much of the tax incidence falls on the consumers in the...

Subjects