Question

Suppose the market demand is given by Q = 30 - 2P , and the market...

Suppose the market demand is given by Q = 30 - 2P , and the market supply is given by Q = - 15 + 3P a)What is the value of Consumer Surplus when the market is in equilibrium? CS (euilibrium)=

b) Now suppose a Price Floor is set at $11. Calculate the Consumer Surplus after the Price Floor is imposed. CS (Price Floor)=
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
a) Suppose the market is defined by Demand: Q = 138 – 2P Supply: Q =...
a) Suppose the market is defined by Demand: Q = 138 – 2P Supply: Q = 5 + 4P At a price of P = 38, what is the size of the surplus that will exist in the market? b) Suppose the market is defined by Demand: Q = 159 – 3P Supply: Q = 5 + 2P At a price of P = 15, what is the size of the shortage that will exist in the market? c) A...
here are the demand and supply curves for a competetive market Q=70 -P and Q= -20+2P...
here are the demand and supply curves for a competetive market Q=70 -P and Q= -20+2P i. Calculate the equilibrium in the market. ii. calculate the consumer supply, producer supply, and total surplus in this competetive free market. (For parts iii and iv) Now suppose the government intervenes and wants to impose a price ceiling in this market. iii. The government hires you to give advice. What do you recommend the government set the price ceiling to be for it...
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'...
1 Demand and Supply - Market Equilibrium ​ Suppose the demand and supply of meals in...
1 Demand and Supply - Market Equilibrium ​ Suppose the demand and supply of meals in the Free Spech Cafe in Berkeley is given by Q^D =50−2p and Q^S =2p−10. ​ 1. Calculate the market equilibrium, i.e. price and the number of lunches consumed. 2. Draw this scenario in a graph clearly labelled. 3. What is the consumer surplus?
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...
Consider the national market for electric school buses with the demand given by Qd=600-2P and supply...
Consider the national market for electric school buses with the demand given by Qd=600-2P and supply given by Qs=3P-150. (Note: the price is in thousands of US$ and quantity is in thousands of buses). (10pts) Calculate the Total Surplus at the equilibrium point and provide a succinct argument as to why the equilibrium represents an efficient allocation of resources in this market. (10pts) Consider now that the price of electric school buses increases by $60 (thousands) above the equilibrium price...
Suppose the market for corn is given by the following equations for supply and demand:            ...
Suppose the market for corn is given by the following equations for supply and demand:             QS = 2p − 2             QD = 13 − p where Q is the quantity in millions of bushels per year and p is the price. Calculate the equilibrium price and quantity. Sketch the supply and demand curves on a graph indicating the equilibrium quantity and price. Calculate the price-elasticity of demand and supply at the equilibrium price/quantity. The government judges the market...
The inverse Demand is given by: P=30-0.25Q and the inverse supply is given by: P=0.5Q-30. If...
The inverse Demand is given by: P=30-0.25Q and the inverse supply is given by: P=0.5Q-30. If a Price Floor of $12 is imposed, then Consumer Surplus and DWL are: (Hint: it helps to draw a graph for this question) Select one: a. CS=1728; DWL = 12 b. CS=648; DWL = 12 c. CS=1600; DWL = 6 d. CS=648; DWL = 24 e. None of the above
Suppose that the market demand and supply for milk is given by Qd =120−6P and Qs...
Suppose that the market demand and supply for milk is given by Qd =120−6P and Qs = 12P − 60 a. Find the market equilibrium quantity, and the equilibrium price. (5 points) b. Determine the quantity demanded, the quantity supplied, and the magnitude of the surplus (or shortage) if a price floor of $11 is imposed in this market. (5 points) c. Determine the quantity demanded, the quantity supplied, and the magnitude of the surplus (or shortage) if a price...
Suppose the market for grass seed is expressed as: Demand: Q D = 100 - 2p...
Suppose the market for grass seed is expressed as: Demand: Q D = 100 - 2p Supply: Q S = 3p Price elasticity of supply is constant at 1. If the supply curve is changed to Q = 8p, price elasticity of supply is still constant at one. Yet with the new supply curve, consumers pay a larger share of a specific tax. Why?
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT