Question

Suppose the demand and supply curves are described by MC = 1.00 + 2.53Q WTP =...

Suppose the demand and supply curves are described by MC = 1.00 + 2.53Q WTP = 9.82 - 2.65Q What is the value of consumer surplus if the price is 4.89?

Business   Economics   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Consider the market for gasoline in Canada. Suppose the market demand and supply curves are described...
Consider the market for gasoline in Canada. Suppose the market demand and supply curves are described by the equations below. In each case, quantity refers to millions of litres of gasoline per month; price is per litre (in cents). Demand: P = 100 – 5QD Supply: P = 44 + 2QS (a) Plot the demand and supply curves on a scale diagram. (b) Compute the equilibrium price and quantity. (c) Suppose government imposes a tax of 20 cents per litre....
the following demand and supply curves: QD = 80,000 - 2,000P and QS = -25,000 +...
the following demand and supply curves: QD = 80,000 - 2,000P and QS = -25,000 + 5,000P 3. What is the consumer surplus in this example of supply and demand? What is the producer surplus in this example? How much are the variable costs to the firm in this example? 4. Suppose the government were to impose a price ceiling of $10 on the sale of each unit sold in this market. Is there a shortage or a surplus? By...
Suppose that the world price for a good is 120 and the domestic demand-and-supply curves are...
Suppose that the world price for a good is 120 and the domestic demand-and-supply curves are given by the following equations: Demand: P = 200 – 8Q Supply: P = 20 + 10Q       a. How much is domestic consumption?       b. How much is domestic production?       c. Calculate the values of consumer and producer surplus.       d. If a tariff of 30% is imposed, how much do consumption and domestic production change?       e. What is the change...
A market is described by the following supply and demand curves: QS = 2P QD =...
A market is described by the following supply and demand curves: QS = 2P QD = 400 - 3P Solve for the equilibrium price and quantity. If the government imposes a price ceiling of $70, does a shortage or surplus (or neither) develop? What are the price, quantity supplied, quantity demanded, and size of the shortage or surplus? If the government imposes a price floor of $70, does a shortage or surplus (or neither) develop? What are the price, quantity...
A market is described by the following supply and demand curves: QSQS =  = 3P3P QDQD =  =...
A market is described by the following supply and demand curves: QSQS =  = 3P3P QDQD =  = 400−P400−P The equilibrium price is______ and the equilibrium quantity is_______ . Suppose the government imposes a price ceiling of $80. This price ceiling is (binding or not binding) , and the market price will be . The quantity supplied will be______ , and the quantity demanded will be_____ . Therefore, a price ceiling of $80 will result in (a shortage, neither a shortage nor...
4. Suppose the domestic supply and demand curves for petroleum in the U.S. are, Qs =...
4. Suppose the domestic supply and demand curves for petroleum in the U.S. are, Qs = 10P - 300 Qd = 3000 - 20P Let the world trade price be $50 per barrel. 1) What is the equilibrium quantity of imports? 2) Suppose a specific tariff of $10 per barrel is imposed. Calculate Consumer surplus, producer surplus, and tariff revenue. 3) Suppose the government imposes an import quota of 1200 units of barrels. Find the trading price for petroleum.
Suppose the world price for a good is 40 and the domestic demand-and-supply curves are given...
Suppose the world price for a good is 40 and the domestic demand-and-supply curves are given by the following equations: Demand: P = 80 – 2Q Supply: P = 5 + 3Q a.   How much is consumed? b.   How much is produced at home? c.   What are the values of consumer and producer surplus? d.   If a tariff of 10 percent is imposed, by how much do consumption and domestic production change? e.   What is the change in consumer and...
Scenario 2 17. Suppose Thailand is a large country. Thailand’s demand and supply curves for rice...
Scenario 2 17. Suppose Thailand is a large country. Thailand’s demand and supply curves for rice are: D* = 9,800 – 200P S* = -200 + 200P b. Suppose the free trade world price is $32 per bushel i. In the absence of any barriers to trade, what is the domestic consumption and production? How much is exported? ii. What is the consumer surplus, producer surplus & gov’t expenditure at price = $32?
Suppose a perfectly competitive market has the following inverse supply and demand curves: Supply: P= 5+2Q...
Suppose a perfectly competitive market has the following inverse supply and demand curves: Supply: P= 5+2Q Demand: P = 50-Q. 1) Solve for the perfectly competitive Pe and Qe, and calculate consumer+producer surplus at Pe, Qe.
Assume that the demand and supply curves for coffee in the US are: Demand: P =...
Assume that the demand and supply curves for coffee in the US are: Demand: P = 350 – QD Supply: P = 20 + 0.1QS a) Determine the equilibrium prices and quantities if there is no international trade? b) Determine the equilibrium quantities (supply and demand) for the US if the nation can trade freely with the rest of the world at a price of 60? In another word, find out the quantity demanded and supplied in the US at...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT