Question

Demand Curve: (100,50), (150, 40), (200, 30), (250, 20), (300,10)

Supply Curve: (50,20), (100, 30), (150, 40), (200, 50), (250, 60), (300, 70)

18. What is the quantity bought and sold in the market if the government implements a subsidy of $40/unit?

a) 100 b) 150 c) 200 d) 250

For questions 19 and 20, please use the following information for the demand curve and supply curve:

QD =1000–2P QS =-200+P

19. What is the quantity bought and sold if the government implements a tax of $60/unit?

a) 150 b ) 180 c) 200 d) 400

20. What is the quantity bought and sold if the government implements a subsidy of $120/unit?

a) 180 b ) 200 c) 220 d) 240

Answer #1

18. Option d

From the below graph we can find that the a subsidy will shift the supply curve towards right and the new equilibrium is at intersection of demand curve which is of quantity 250

19. Option b) 180

20. Option d

Consider the following market. Demand is given by qd = 150 – 2P,
where qd is the quantity demanded and P is the price. Supply is
given by qs = P, where qs is the quantity supplied.The government
implements a tax of $30 per unit to be paid by consumers. What is
the new market equilibrium? What is the economic incidence of the
tax (that is, who pays for the tax)? How would your answer change
if the government implemented...

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...

1. Consider a demand curve of the form QD = 40 - 2P, where QD is
the quantity demanded and P is the price of the good. The supply
curve takes the form of QS = -4 + 2P, where QS is the quantity
supplied, and P is the price of the good. Be sure to put P on the
vertical axis and Q on the horizontal axis. a. What is the
equilibrium price and quantity? Draw out the supply...

Suppose the market demand curve for a product is given by
QD=100-5P and the market supply curve is given by
QS=5P
a. What are the equilibrium price and quantity?
b. At the market equilibrium, what is the price elasticity of
demand?
Suppose government sets the price at $15 to benefit the
producers.
What is the quantity demanded?
What is the quantity supplied?
What is the amount of the surplus?
Suppose market demand increases to Qd=200-5P.
What is the new equilibrium...

The demand for okra is given by: QD= 150 -P. The supply of okra
is given by: QS= 2P. The government has implemented a price floor
of $137. Calculate producer surplus with the price floor.

Consider a market that can be represented by a linear demand
curve, QD = 200 – 2PD, (where QD is the quantity demanded and PD is
the price that demanders pay) and a linear supply curve that QS = ½
PS (where QS is the quantity supplied and PS is the price that
suppliers get).
a. What is the equilibrium price?
b. What is the equilibrium quantity?
c. What is demand elasticity at the equilibrium point?

Given that the demand for Swedish pancakes is Qd = 100 - 10P,
and Supply is Qs = 10P.
A. Determine the initial equilibrium price and quantity
B. Now assume, after learning of research finding significant
health benefits from a Swedish pancake diet, the government
introduces a $1 per unit subsidy (i.e. s =$1, provided to
producers). Calculate the impact of the subsidy on prices paid by
consumers, prices received by producers and equilibrium output.

Suppose Qd=40-P and Qs= -2+2P. If Price equals 20, quantity
demanded will be
Question 16 options:
22
18
40
10
20
Question 17 (1 point)
Suppose Qd=40-P and Qs= -2+2P. What is the equilibrium price in
this market?
Question 17 options:
14
2
13
20
12.66
Question 18 (1 point)
Suppose Qd=40-P and Qs= -2+2P. What is the consumer surplus at
equilibrium?
Question 18 options:
39
676
169
338
14
Assume at a price of $22, consumer bought 180 units...

The demand and supply functions of a given competitive market
are provided as follows: Qd = 100 – 2P Qs = 70 + 3P You are
required to; (a) Find the equilibrium price and quantity sold. 7
marks (b) Assuming that the government of Ghana has imposed GH¢2.00
per unit tax on the good in the market. What will be the new
equilibrium price and quantity in the market? 11 marks

Suppose demand and supply are given by Qd =
40 - P and Qs = 1.0P
- 20.
a. Quantity demanded:
b. Quantity Supplied:
c. Shortage:
d. Full economic prices:

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