Question

In: Economics

Consider the following supply and demand equations: Supply: p = 550 + 3q Demand: p =...

Consider the following supply and demand equations: Supply: p = 550 + 3q

Demand: p = 750 − 2q

Show your work as you respond to the following questions.

(a) What is the market equilibrium? (5%)

(b) What is the Total Surplus at equilibrium? (5%)

(d) The government imposes a price floor of 706. What is Total Surplus? What is the Deadweight Loss? (10%)

(e) Instead, the government imposes a price floor of 650. What is Total Surplus? What is the Deadweight Loss? (10%)

Solutions

Expert Solution

Rahul Sunny answered 2 years ago
Next > < Previous

Related Solutions

Consider the following supply and demand equations: Supply: p = 10 + q Demand: p =...
Consider the following supply and demand equations: Supply: p = 10 + q Demand: p = 100 − 2q Show your work as your respond to the following questions.1 (a) What is the market equilibrium price and quantity? (5%) (b) What is the Total Surplus at equilibrium? (5%) (c) The government enacts a price ceiling at ¯p = 50. What is the Total Surplus? D）Calculate the Consumer Surplus under a price ceiling of ¯p = 20. (e) What is the...
Consider the following supply and demand equations: Supply: p = 10 + q Demand: p =...
Consider the following supply and demand equations: Supply: p = 10 + q Demand: p = 100 − 2q Show your work as your respond to the following questions. (a) What is the market equilibrium price and quantity? (b) What is the Total Surplus at equilibrium? (c) The government enacts a price ceiling at ¯p = 50. What is the Total Surplus? (d) Calculate the Consumer Surplus under a price ceiling of ¯p = 20. (e) What is the Deadweight...
Consider the following supply and demand equations: Supply: p = 10 + q Demand: p =...
Consider the following supply and demand equations: Supply: p = 10 + q Demand: p = 100 − 2q Show your work as your respond to the following questions.1 (a) What is the market equilibrium price and quantity? (5%) (b) What is the Total Surplus at equilibrium? (5%) (c) The government enacts a price ceiling at ¯p = 50. What is the Total Surplus? D）Calculate the Consumer Surplus under a price ceiling of ¯p = 20. (e) What is the...
Consider the following supply and demand equations: Supply: p = 10 + q Demand: p =...
Consider the following supply and demand equations: Supply: p = 10 + q Demand: p = 100 − 2q Show your work as your respond to the following questions. (a) What is the market equilibrium price and quantity? (b) What is the Total Surplus at equilibrium? (c) The government enacts a price ceiling at ¯p = 50. What is the Total Surplus? (d) Calculate the Consumer Surplus under a price ceiling of ¯p = 20. (e) What is the Deadweight...
Consider the following supply and demand equations: Supply: p = 10 + q Demand: p =...
Consider the following supply and demand equations: Supply: p = 10 + q Demand: p = 100 − 2q Show your work as you respond to the following questions. What are the market equilibrium price and quantity? (5%) What is the Total Surplus at equilibrium? (5%) The government enacts a price ceiling at ¯p = 50. What is the Total Surplus? (5%) Calculate the Consumer Surplus under a price ceiling of ¯p = 20. (5%) What is the Deadweight Loss...
Consider a closed market with the following domestic demand and supply functions: P=540- (3/4)Q P=120+3Q (a)...
Consider a closed market with the following domestic demand and supply functions: P=540- (3/4)Q P=120+3Q (a) (4 points) What is the domestic equilibrium price and quantity? (b) (4 points) Calculate the consumer surplus and the producer surplus. (c) (6 points) Suppose that the domestic market opens up and it joins the world market. If the world price is $126 less than the old domestic equilibrium price, how much quantity is produced domestically? How much quantity is imported? (d) (6 points)...
Given the following supply and demand equations, solve the following supply: p=q Demand: p=200-p a) What...
Given the following supply and demand equations, solve the following supply: p=q Demand: p=200-p a) What is the market equilibrium price and quantity? b) What is the Consumer surplus and the producer surplus? c) The government enacts a price ceiling of $120. What is the new consumer surplus? d) Assume now the government enacts a price ceiling of $20. What is the new consumer surplus? e) When the price ceiling is $20, consumer surplus declines, compared to the market equilibrium....
The domestic supply and demand curves for washing machines are as follows: Supply: P= 2040+3Q Demand:...
The domestic supply and demand curves for washing machines are as follows: Supply: P= 2040+3Q Demand: P=4080-7Q where P is the price in dollars and the Q is the quantity in millions. The U.S. is a small producer in the world washing machine market. Where the current price (which will not be affected by anything we do) is $ 2,300. Congress is considering a tariff of $400. A. Calculate the domestic market for washing machines' price and quantity equilibrium. B....
Consider the following demand and supply equations. Demand is given by qd = a – bP,...
Consider the following demand and supply equations. Demand is given by qd = a – bP, where qd is the quantity demanded and P is the price. a and b are parameters (constants) Similarly, the supply function is given by qs = d + eP, where qs is the quantity supplied and d and e are constants a. Plot the demand and supply functions. Label the intercepts clearly. b. What is the market equilibrium price and quantity?
In a market demand and supply equations are: The demand curve is given as: P =...
In a market demand and supply equations are: The demand curve is given as: P = 50 - 3Q The supply curve is given as: P = 10 + 2Q Assuming a perfectly competitive market: What is the total wealth?  
ADVERTISEMENT
Subjects
ADVERTISEMENT
Latest Questions
ADVERTISEMENT