Question

The table below shows the demand and supply schedules for gizmos. a. Use the information in...

The table below shows the demand and supply schedules for gizmos.

a. Use the information in the table to determine the market equilibrium quantity and price of gizmos.

b. Suppose the government wants to set a quota that states that only 8 gizmos can be exchanged. What is the demand price and what is the supply price at this quota limit?

c. At the quota limit of 8 gizmos, what is the quota rent available to sellers of gizmos?

d. Suppose instead that the government increases the production quota to 16 gizmos. Under this regulation, at what price will gizmos be purchased?

Price per Gizmo

Quantity of Gizmos

Demanded (Qd)

Quantity of Gizmos

Supplied (Qs)

$1.00

17

2

$1.50

16

4

$2.00

15

6

$2.50

14

8

$3.00

13

10

$3.50

12

12

$4.00

11

14

$4.50

10

16

$5.00

9

18

$5.50

8

20

Homework Answers

Answer #1

Price per Gizmo

Quantity of Gizmos

Demanded (Qd)

Quantity of Gizmos

Supplied (Qs)

$1.00

17

2

$1.50

16

4

$2.00

15

6

$2.50

14

8

$3.00

13

10

$3.50

12

12

$4.00

11

14

$4.50

10

16

$5.00

9

18

$5.50

8

20

Answer:- the market equilibrium quantity and price of gizmos:- Equilibrium price = $3.5 and equilibrium quantity =12

The equilibrium point is achieved where the demand and supply are same and it is obtained when the quantity is equal to 12 and price of $3.50

Answer:- Suppose the government wants to set a quota that states that only 8 gizmos can be exchanged.

The demanded price will be $5.5 and supplied price will be $2.5

Answer:- Suppose instead that the government increases the production quota to 16 gizmos. Under this regulation, the price of gizmos should be $1.5

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
b. Suppose the government wants to set a quota that states that only 8 gizmos can...
b. Suppose the government wants to set a quota that states that only 8 gizmos can be exchanged. What is the demand price and what is the supply price at this quota limit? c. At the quota limit of 8 gizmos, what is the quota rent available to sellers of gizmos? d. Suppose instead that the government increases the production quota to 16 gizmos. Under this regulation, at what price will gizmos be purchased? The table below shows the demand...
1. list one case for trade restrictions 2. Suppose the following table reflects the domestic supply...
1. list one case for trade restrictions 2. Suppose the following table reflects the domestic supply and demand for radios: Price $18 $16 $14 $12 $10 $8 $6 $4 Qs 8 7 6 5 4 3 2 1 Qd 2 4 6 8 10 12 14 16 a. Graph these market conditions and identify the equilibrium price and quantity. b. Now suppose that foreigners enter the market, offering to sell an unlimited supply of radios for $6 a piece. Illustrate...
1. [Market Equilibrium] Following table shows information about the demand for apples in the wholesale market....
1. [Market Equilibrium] Following table shows information about the demand for apples in the wholesale market. Price, P ($/lb) Quantity Qd (lbs) 10/0 8/4 6/8 4/12 2/16 (a) Draw a graph with Price (P) on the vertical axis and Quantity demanded (Qd) on the horizontal axis? (b) Write the equation for this inverse demand function. (c) What is the quantity demanded when P = $3/lb? Following table shows information about the supply of 20 lbs box of apples in the...
Following table shows information about the demand for apples in the wholesale mar- ket. Price, P...
Following table shows information about the demand for apples in the wholesale mar- ket. Price, P ($/lb) Quantity Qd (lbs) 10. 0 8. 4 6 8 4. 12 2 16 (a) Draw a graph with Price (P) on the vertical axis and Quantity demanded (Qd) on the horizontal axis? (b) Write the equation for this inverse demand function. (c) What is the quantity demanded when P = $3/lb? Following table shows information about the supply of 20 lbs box of...
Effects of Price Controls The accompanying table shows the demand and supply schedules for concert tickets...
Effects of Price Controls The accompanying table shows the demand and supply schedules for concert tickets at Oracle Arena: Quantities are in THOUSANDS Ticket Price Q d Q s $150.00 20 24 $135.00 22 22 $120.00 24 20 $105.00 26 18 $90.00 28 16 $75.00 30 14 a. Find the equilibrium price and quantity. b. Suppose that the Oakland mayor sets a price ceiling of $105. How large is the shortage of concert? Show on the supply and demand diagrams,...
The accompanying table shows the demand and supply schedules for concert tickets at Oracle Arena: Quantities...
The accompanying table shows the demand and supply schedules for concert tickets at Oracle Arena: Quantities are in THOUSANDS Ticket Price Q d Q s $150.00 20 24 $135.00 22 22 $120.00 24 20 $105.00 26 18 $90.00 28 16 $75.00 30 14 a. Find the equilibrium price and quantity. b. Suppose that the Oakland mayor sets a price ceiling of $105. How large is the shortage of concert? Show on the supply and demand diagrams, and also calculate the...
Effects of Price Controls The accompanying table shows the demand and supply schedules for concert tickets...
Effects of Price Controls The accompanying table shows the demand and supply schedules for concert tickets at Oracle Arena: Quantities are in THOUSANDS 6 Lost Demand Ticket Price Q d Q s $150.00 20 24 $135.00 22 22 $120.00 24 20 $105.00 26 18 $90.00 28 16 $75.00 30 14 a. Find the equilibrium price and quantity. b. Suppose that the Oakland mayor sets a price ceiling of $105. How large is the shortage of concert? Show on the supply...
Exhibit 5-3 Use the following information about demand and supply schedules to answer the question. Price...
Exhibit 5-3 Use the following information about demand and supply schedules to answer the question. Price D1 D2 S1 S2 $12 5 9 19 14 $10 8 12 17 12 $ 8 11 15 15 10 $ 6 13 18 13 8 $ 4 16 21 11 6 $ 2 18 24 9 4 Refer to Exhibit 5-3. If D 2 and S 1 represent the demand and supply schedules in a particular market, the equilibrium price and quantity are...
These are the supply and demand schedules for good X: Briefly discuss your responses.                            &nbs
These are the supply and demand schedules for good X: Briefly discuss your responses.                                                                  Quantity          Quantity                                             Price             Supplied        Demanded                                             $10                     18                   3                                                 9                     16                   4                                                 8                     14                   5                                                 7                     12                   6                                                 6                     10                   7                                                 5                       8                   8                                                 4                       6                   9                                                 3                       4                 10                                                 2                       2                 11                                                 1                       0                 12                        a)    What is the equilibrium price and quantity? At this equilibrium, what is the producer’s revenue?            ...
Problem 3 The following table shows the supply and demand schedules in a market. Show all...
Problem 3 The following table shows the supply and demand schedules in a market. Show all your work and discuss the following questions. Price ($) Quantity Demanded (units) Quantity Supplied (units) 0 50 0 2 40 15 4 30 30 6 20 45 8 10 60 10 0 75 What is the equilibrium price in this market? Equilibrium Quantity? Why? At a price of $2, will there be a surplus or shortage of units in this market? Why? At a...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT