Question
In: Math
Find the consumer and producer surpluses by using the demand and supply functions, where p is...
Find the consumer and producer surpluses by using the demand and supply functions, where p is the price (in dollars) and x is the number of units (in millions). Demand Function Supply Function p = 1005 − 25x p = 42x consumer surplus $ producer surplus $
Solutions
Expert Solution
we have
At equilibrium point,
put x = 15 in S(x),
At equilibrium (p0, x0) = (630, 15)
the formula for the consumer surplus,
put p0 = 630 and x0 = 15,
and the formula for the producers surplus,
put p0 = 630 and x0 = 15,
milcah answered 2 years agoRelated Solutions
discuss briefly consumer surpluses and producer surpluses verbally and graphically with examples
discuss briefly consumer surpluses and producer surpluses
verbally and graphically with examples
Using a demand/supply diagram, illustrate the effects of a tariff on domestic country consumer and producer...
Using a demand/supply diagram, illustrate the effects of a
tariff on domestic country consumer and producer welfare. Apply
consumer and producer surplus measures to answer this question.
Take the linear demand and functions for the market for beef: Demand: P=a1-b1Qd+cPc Supply: P=a2+b2Qd where...
Take the linear demand and functions for the market for
beef:
Demand: P=a1-b1Qd+cPc
Supply: P=a2+b2Qd
where a1 and a2 are demand and supply intercepts, respectively.
b1 and b2 are the slopes for demand and supply. Pc is the price of
chicken, a substitute for beef. In this case, assume that both c
and Pc are exogenously determined parameters.
1. In Python, create a function for the demand that inputs the
prices and the parameters, and outputs the quantity demanded using...
Welfare economics looks at winners and losers through changes in consumer and producer surpluses. When the...
Welfare economics looks at winners and losers through changes in
consumer and producer surpluses. When the U.S. imposed tariffs on
steel imports my relatives from the Iron Range of Minnesota were
happy about the tariffs. My husband's employer manufactures potato
harvesting equipment. They are facing higher steel costs as a
result of the tariffs. Using a welfare economics explain in
economic terms, the reason some businesses liking the tariffs and
other businesses not liking the tariffs. What is the overall...
Consider a market where demand is P = 10 - 2Q and supply is P =...
Consider a market where demand is P = 10 - 2Q and supply is P =
Q/2. There is a consumption positive externality of $2.50/unit of
consumption
a. Calculate the market equilibrium.
b. What is the social optimum quantity and price?
c. If the government uses a tax to get producers to internalize
their externality, what is the net price received by producers?
d. Calculate the total surplus in the market equilibrium, at the
social optimum and with the tax....
Consider a market where demand is P = 10 - 2Q and supply is P =...
Consider a market where demand is P = 10 - 2Q and supply is P =
Q/2. There is a consumption positive externality of $2.50/unit of
consumption
a. Calculate the market equilibrium.
b. What is the social optimum quantity and price?
c. If the government uses a tax to get producers to internalize
their externality, what is the net price received by producers?
d. Calculate the total surplus in the market equilibrium, at the
social optimum and...
a. Show on a demand supply graph how consumer surplus and producer surplus is defined b....
a. Show on a demand supply graph how consumer surplus and
producer surplus is defined
b. In general to evaluate welfare effects we need to consider
the welfare of groups of individuals. What problem does consumer
surplus pose in this regard ?
c. There are to firms in an economy facing a upward sloping
supply curve in a perfectly competitive setting. Show graphically
how you would find the total producer surplus in the economy.
Why does pure competition provide consumers with the largest consumer and producer surpluses? Describe the graph...
Why does pure competition provide consumers with the
largest consumer and producer surpluses?
Describe the graph for a long-run supply curve in a
decreasing-cost industry.
Let the demand and supply functions for a commodity be Q =D(P) ∂D < 0 ∂P...
Let the demand and supply functions for a commodity be Q =D(P)
∂D < 0
∂P
Q=S(P,t) ∂S>0, ∂S<0 ∂P ∂t
where t is the tax rate on the commodity.
(a) What are the endogenous and exogenous variables? (b)
Derive the total differential of each equation.
(c) Use Cramer’s rule to compute dQ/dt and dP/dt. (d)
Determine the sign of dQ/dt and dP/dt.
(e) Use the Q − P diagram to explain your results.
Find the Taylor series with n...
Let the demand and supply functions for a commodity be Q =D(P) ∂D < 0 ∂P...
Let the demand and supply functions for a commodity be Q =D(P)
∂D < 0
∂P
Q=S(P,t) ∂S>0, ∂S<0 ∂P ∂t
where t is the tax rate on the commodity.
(a) What are the endogenous and exogenous variables? (b)
Derive the total differential of each equation.
(c) Use Cramer’s rule to compute dQ/dt and dP/dt. (d)
Determine the sign of dQ/dt and dP/dt.
(e) Use the Q − P diagram to explain your results.
Find the Taylor series with n...
ADVERTISEMENT
ADVERTISEMENT
Latest Questions
- “Triangle Guessing” game in Python The program accepts the lengths of three (3) sides of a...
- THIS PROGRAM HAS TO BE WRITTEN IN C Single function to perform the parity computation on...
- Consider a buffer system consisting of Benzoic acid (pKa = 4.20) and sodium benzoate, a) Would...
- Decision Variables S T Minimize 1.8S + 2.20T Subject to: Potassium 5S + 8T >= 200...
- A neurologist needs to counsel a stroke victim and her husband about possible outcomes, treatment options,...
- Case Study: Personal Beliefs in the Workplace Don Shakow was a prominent professional who worked in...
- 1: Competency framework usage is the modern best practice in management. What is meant by competency...
ADVERTISEMENT