Question

Suppose the market supply for Good X is given by QXS = -100 + 5PX. Compute...


  1. Suppose the market supply for Good X is given by QXS = -100 + 5PX. Compute and illustrate with completely labelled diagram the producer surplus if the equilibrium price of X is $100 per unit (show the relevant calculation).

  1. The daily market demand and supply for chicken in Kuala Lumpur is given by:

= 16,000 – 1,000P

= 2,000 + 1,000P

The quantity and price are measured in tonnes and RM, respectively.

  1. Determine the equilibrium quantity and price in the above market,

  2. Explain what will happen if the government imposes a price ceiling of RM10 on the chicken.

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
QUESTION 4 Suppose the market supply for Good X is given by QXS = -100 +...
QUESTION 4 Suppose the market supply for Good X is given by QXS = -100 + 5PX. Compute and illustrate with completely labelled diagram the producer surplus if the equilibrium price of X is $100 per unit (show the relevant calculation). The daily market demand and supply for beef in New york is given by: Qd= 16,000 – 1,000P Qs=   2,000 + 1,000P The quantity and price are measured in tonnes and Dollars, respectively. Determine the equilibrium quantity and price...
Consider the market for butter in Saudi Arabia. The demand and supply relations are given as...
Consider the market for butter in Saudi Arabia. The demand and supply relations are given as follows: Demand:             QD = 12 - 2P Supply:                Qs = 3P - 3. P is the price of butter. Calculate: Equilibrium price _____________                   2. Equilibrium quantity _____________ Consumer surplus ___________                       4. Producer surplus ___________ Draw the demand and supply graphs. Show the equilibrium price and quantity, consumer surplus and producer surplus in the graph below. Graphs must be on scale. Suppose government imposes...
Suppose the market demand for a commodity is given by the download sloping linear demand function:...
Suppose the market demand for a commodity is given by the download sloping linear demand function: P(Q) = 3000 - 6Q where P is a price and Q is quantity. Furthermore, suppose the market supply curve is given by the equation: P(Q) = 4Q a) Calculate the equilibrium price, quantity, consumer surplus and producer surplus. b) Given the equilibrium price calculated above (say's P*), suppose the government imposes a price floor given by P' > P*. Pick any such P'...
You are given the following information about the demand for and supply of widgets in the...
You are given the following information about the demand for and supply of widgets in the Republic of Xénïa. Answer the questions that follow. If you draw diagrams, use a ruler, label the diagrams completely, show demand choke price, demand intercept, supply choke price, supply intercept, etc. Do not use double columns or put rectangles or squares around your answers. Use “D” for demand and “S” for supply. Do not use Qd or Qs to label your diagrams. Although you...
The market for apples is perfectly competitive, with the market supply curve is given by P...
The market for apples is perfectly competitive, with the market supply curve is given by P = 1/8Q and the market demand curve is given by P = 40 – 1/2Q. a. Find the equilibrium price and quantity, and calculate the resulting consumer surplus and producer surplus. Indicate the consumer surplus and producer surplus on the demand and supply diagram. b. Suppose the government imposes a 10 dollars of sale tax on the consumer. What will the new market price...
Consider a perfectly competitive market with Market demand function: ?? = 1000 − 2? Market supply...
Consider a perfectly competitive market with Market demand function: ?? = 1000 − 2? Market supply function: ?? = 2? a. Suppose there is no sales tax. What is the equilibrium price and equilibrium quantity? What is the consumer surplus and producer surplus? b. Now suppose the government imposes a sales tax of $50 per unit on consumers. What is the new equilibrium price and equilibrium quantity? What is the new consumer surplus and producer surplus? What is the tax...
Suppose that the demand curve for wheat is Q=100−10p and the supply curve is Q=10p. The...
Suppose that the demand curve for wheat is Q=100−10p and the supply curve is Q=10p. The government imposes a price ceiling of p=3 i) Describe how the equilibrium changes. ii) What effect does this price ceiling have on consumer surplus, producer surplus, and deadweight loss?
Q3: The market for barley is represented by Q = 8,600 – 20P and Q =...
Q3: The market for barley is represented by Q = 8,600 – 20P and Q = 30P – 600 where Q is the quantity of barley measured in tonnes and P is the price of barley per tonne measured in dollars. Hint: Demand and supply graphs are useful for the following questions. They do not need to be precise and you do not need to submit the graphs. a) What are the equilibrium price and equilibrium quantity in this market?...
The demand for sunglasses is given by D(p) = 100 − 2 p and the supply...
The demand for sunglasses is given by D(p) = 100 − 2 p and the supply curve is given by S(p) =3p (a) Compute the equilibrium price and equilibrium quantity of sunglasses. (b) Sketch both the demand and supply curves on the same graph (be sure to label your axes correctly). (c) Determine the value of consumer surplus and producer surplus at the equilibrium values. Suppose all sunglasses are imported from China. Suppose also that the government imposes an import...
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...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT