Question

In a market demand is given by p = 1000-10q and the supply of p =...

In a market demand is given by p = 1000-10q and the supply of p = 400 + 5q introducing a subordinated subsidy of 300 paid to the producers. Illustrate and calculate how much of the amount of the subsidy paid to the producers and the amount to the consumer. Illustrate and calculate the welfare loss USING GRAPHS. Please make the text readable..

Homework Answers

Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
A market has a demand curve given by P = 800 – 10Q where P =...
A market has a demand curve given by P = 800 – 10Q where P = the price per unit and Q = the number of units. The supply curve is given by P =100 + 10Q.(10 points) Graph the demand and supply curves and calculate the equilibrium price and quantity in this market.(5 points) Calculate the consumer surplus at equilibrium.(5 points) Calculate the producer surplus at equilibrium.(5 points)(5 points) Calculate the total surplus at equilibrium
Suppose there is a market at its competitive equilibrium. Demand p = 100 - QD Supply...
Suppose there is a market at its competitive equilibrium. Demand p = 100 - QD Supply p = 20 + (QS /3) The government introduces a subsidy of s = $4 per unit of the good sold and bought. (a) Draw the graph for the demand and supply before subsidy. (b) What is the equilibrium price and quantity before the subsidy and after the subsidy? (c) Looking at the prices buyers pay and sellers receive after the subsidy compared to...
Market demand for calculators is P = 300 – 3Q and market supply is P =...
Market demand for calculators is P = 300 – 3Q and market supply is P = 20 + 2Q. A) Calculate market equilibrium price and quantity. B) How many calculators will be traded if a $10/unit sales tax is implemented? C) Does it matter if we impose this tax on suppliers or consumers? Why? D) At market equilibrium, is demand more or less elastic than supply? E) Calculate the effects of the tax on consumer surplus, producer surplus, tax revenue,...
Below you will find a supply and demand schedule for avocados. Assume that the market is...
Below you will find a supply and demand schedule for avocados. Assume that the market is otherwise competitive and in equilibrium. Then let the government institute a price floor at $7. You are to illustrate this outcome; title your graph and draw supply and demand , denote the efficient price and quantity, and exhibit the price floor . Be sure to label deadweight loss , consumer surplus, producer surplus , and any surplus or shortage that results . Calculate the...
Suppose that, in the market for litres petrol, demand is given by P = 5 –...
Suppose that, in the market for litres petrol, demand is given by P = 5 – 0.3Q, and supply is given by P = 1 + 0.1Q. Further, suppose that the government provides a $1 per litre subsidy for petrol. A. Calculate the effect of the subsidy on the equilibrium price and quantity. B. Calculate the change in producer surplus and consumer surplus that result from the provision of the subsidy. C. Does total surplus to everyone in the economy...
Suppose demand and supply conditions in a market are given by P = 12 - 2QD...
Suppose demand and supply conditions in a market are given by P = 12 - 2QD and P = 3 + QS respectively. In equilibrium, a market will usually generate both consumer and producer surplus. Who gets the most surplus in this market? A. Consumers and producers split the surplus equally. B. Consumers get more surplus than producers. C. Producers get more surplus than consumers. D. There is neither consumer nor producer surplus in this market.
1. Given Canada’s domestic demand and domestic supply: P=50-(Q/3) P=10+(Q/3) If the government imposes a production...
1. Given Canada’s domestic demand and domestic supply: P=50-(Q/3) P=10+(Q/3) If the government imposes a production subsidy of $5, how much is import after subsidy? How much is consumer surplus after subsidy? How much is producer surplus after subsidy? How much is deadweight loss after subsidy?
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...
. Suppose that, in the market for cars, demand is given by P= 10 – Q...
. Suppose that, in the market for cars, demand is given by P= 10 – Q and supply is given by P= Q. A. What is the market price that maximises total economic surplus? B. Illustrate on a graph and calculate consumer and producer surplus at this price. (Remember to clearly label any relevant prices and quantities.) C. Explain why no other market price leads to a Pareto efficient outcome. (You can draw the graph, take a picture and attach...
Using the following information solve for the monopolist output and price, the perfectly competitive output and...
Using the following information solve for the monopolist output and price, the perfectly competitive output and price, the profits earned under both models and the deadweight loss that arises as a result of the monopoly: a. Demand: P=500-2Q ; Supply: P=50+3Q; MR=500-4Q b. Demand: P=1000-5Q ; Supply: P=100+5Q ; MR=1000-10Q c. Demand: P=400-4Q; Supply: P=40+2Q; MR=400-8Q Please use calculation instead of graph to find solution. This is a market demand curve.
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT