Question

Consider a market where supply and demand are given by QXS = -18 + PX and QXd = 81 - 2PX. Suppose the government imposes a price floor of $38, and agrees to purchase and discard any and all units consumers do not buy at the floor price of $38 per unit. Instructions: Enter your responses rounded to the nearest penny (two decimal places).

a. Determine the cost to the government of buying firms’ unsold units.

b. Compute the lost social welfare (deadweight loss) that stems from the $38 price floor.

Answer #1

Consider a market
where supply and demand are given by QXS =
-16 + PX and QXd = 74 -
2PX. Suppose the government imposes a price floor of
$34, and agrees to purchase and discard any and all units consumers
do not buy at the floor price of $34 per unit.
Instructions: Enter your responses rounded to the
nearest penny (two decimal places).
a. Determine the cost
to the government of buying firms’ unsold units.
$ __________
b. Compute...

Consider a market where supply and demand are given by QXS = -14
+ PX and QXd = 91 - 2PX. Suppose the government imposes a price
floor of $42, and agrees to purchase and discard any and all units
consumers do not buy at the floor price of $42 per unit.
Instructions: Enter your responses rounded to the nearest penny
(two decimal places).
a. Determine the cost to the government of buying firms’ unsold
units.
b. Compute the lost...

Consider a market where supply and demand are given by QXS = -18
+ PX and QXd = 90 - 2PX. Suppose the government imposes a price
floor of $41, and agrees to purchase and discard any and all units
consumers do not buy at the floor price of $41 per unit.
a. Determine the cost to the government of buying firms’ unsold
units.
b. Compute the lost social welfare (deadweight loss) that stems
from the $41 price floor.

Consider a market where supply and demand are given by QXS = -16
+ PX and QXd = 83 - 2PX. Suppose the government imposes a price
floor of $36, and agrees to purchase and discard any and all units
consumers do not buy at the floor price of $36 per unit.
Instructions: Enter your responses rounded to the nearest penny
(two decimal places).
a. Determine the cost to the government of buying firms’ unsold
units. $ 324 (I know...

Consider a market where supply and demand are given by QXS = -18
+ PX and QXd = 81 - 2PX. Suppose the government imposes a price
floor of $38, and agrees to purchase any and all units consumers do
not buy at the floor price of $38 per unit. Assume that the
government simply removes product from the market through its
purchase.
a. Determine the cost to the government of buying firms’ unsold
units. $____
b. Compute the lost...

Consider a market where supply and demand are given by QXS = -16
+ PX and QXd = 92 - 2PX. Suppose the government imposes a price
floor of $40, and agrees to purchase and discard any and all units
consumers do not buy at the floor price of $40 per unit. a.
Determine the cost to the government of buying firms’ unsold units.
b. Compute the lost social welfare (deadweight loss) that stems
from the $40 price floor. *****Please...

1. Consider a market where supply and demand are given by QXS =
-16 + PX and QXd = 92 - 2PX. Suppose the government imposes a price
floor of $40, and agrees to purchase and discard any and all units
consumers do not buy at the floor price of $40 per unit. a.
Determine the cost to the government of buying firms' unsold units.
I know the answer for this $480 b. Compute the lost social welfare
(deadweight loss)...

I was given Chapter 2, Problem 10CCQ in Managerial Economics and
Business Strategy Ninth Edition with some numbers changed. I seem
to continue to get the wrong answer though I've gone through this
question countless times. The first answer i'm getting is correct,
but the second. the "lost social welfare" portion is wrong. The
substituted numbers are as follows: When Qxs= -10+Px and Qxd=71-2Px
price floor is $33.00. The first answer I'm getting is $594.00, the
second answer i get...

Given the previous questions with a world price of 34, and the
domestic demand and supply curves given by the following
equations:
D: P= 80 - 2Q S: P= 10 + 3Q
Suppose the government imposes a tariff equal to 6 which
increases the price in the domestic market to 40. Given the tariff
and new price to consumers, domestic consumers will now import
______ units of the good, the government will collect ______ in
tariff revenue, and the total...

Consider a competitive market served by many domestic and
foreign firms. The domestic demand for these firms’ product is Qd =
1100 - 2.5P. The supply function of the domestic firms is QSD = 50
+ 1.5P, while that of the foreign firms is QSF = 200.
Instructions: Enter your responses for equilibrium price rounded
to the nearest penny (two decimal places). Enter your responses for
equilibrium quantity rounded to one decimal place.
a. Determine the equilibrium price and quantity...

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