Question

Given a demand curve of P = 63 - 1.5Q and a supply curve of P = 3 + 0.5Q, with a tax of 24, solve for the percentage loss of surplus for both consumers (Answer 1) and producers (Answer 2). The formula for percentage loss is, for example, (CS - CSt)/CS.

Answer #1

Given a demand curve of P = 38 - 1.5Q and a supply curve of P =
10 + 0.5Q, with a tax of 24, solve for the resulting CS (Answer 1)
and PS (Answer 2).

Given a demand curve of P = 118 - 1.5Q and a supply curve of P =
4 + 1.5Q, with a subsidy of 54, solve for the cost to the
government of implementing the subsidy.

Given a demand curve of P = 30 - Q and a supply curve of P =
0.25Q, with a tax of 25, solve for the dollar value of the tax
burden on both consumers (Answer 1) and producers (Answer 2).

Given a demand curve of P = 72 - Q and a supply curve of P = 2 +
1.5Q. Solve for DWL with a tax of 30 (Answer 1) and with a tax of
60 (Answer 2).

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

Given a demand curve of P = 77 - Q and a supply curve of P = 1 +
Q, with a subsidy of 24, solve for the resulting quantity.

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.

The demand for skateboards in Vermillion is Q = 500−2P and the
supply curve is Q = 1/2 P. The government 2
decides to raise revenue by taxing consumers $25 for each
skateboard purchased.
(a) Graph the supply and demand curves and calculate the
consumer and producer surplus that would exist if there were no tax
in the market.
(b) Show how the tax will change the market equilibrium price
and quantity. Identify the price paid by consumers and the...

Demand for Dok P=60-0.5Q
supply P=12+0,5Q
1.what is the equilibrium price, quantity, consumer surplus and
producer surplus.
2.suppose the demand curve increases by 12 unit at given price.
Hold everything constant, what is new equilibrium price, quantity,
consumer surplus and producer surplus.
3.use the original demand and supply curve in part one. assume
economy can trade with world for 12 unit. What is the market price
for local consumers if the world price is 24. What is price local
producer...

Suppose the demand curve is given by Qd=75-5P and the supply
curve is given by Qs=P-3. SHOW YOUR WORK in the space below (type
it out, line by line), and solve for the equilibrium price, the
equilibrium quantity, the consumer surplus, the producer surplus,
and the total surplus.

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