Question

The inverse demand curve for wheat is p = 10 – 0.10Q and the inverse supply curve is p = 0.40Q, where p = dollars per bushel and Q is billions of bushels of wheat. Wheat is bought and sold in a perfectly competitive market.

a. Provide a graph of the market for wheat and calculate and show the equilibrium price and quantity (in billions of bushels) in the market.

b. If the government provides a price support of $9 per bushel and buys up the excess wheat from farmers, show the effects of the price support on your graph and calculate the new quantity demanded and supplied.

c. Calculate and explain the effects of the price support on consumer surplus, producer surplus, government expenditures and welfare (deadweight loss) as a result of the price support.

^ please answer with detailed math and clear explanation + graph.

Thank you so much.

Answer #1

The demand and supply equations for the Wheat market are:
Demand: P = 200-4q Supply: P = - 50 + Q Where P = price per bushel,
and Q = quantity 1. Calculate the equilibrium price and quantity.
(1.5 Marks) 2. Suppose the government guaranteed producers a price
floor of AED 90 per bushel. Estimate the effect on the quantity
supplied and demanded. (1.5 Marks) 3. Would the price floor affect
the Market outcome? (Calculate the surplus or shortage )....

Suppose that the demand curve for wheat is D(p) = 120 − 10p
and the supply curve is S(p) = 2p.
Compute the consumer and producer surplus at the equilibrium.
Indicate them on a clearly marked graph.
Assume that the government imposes a specific tax of $2.4 on
wheat, to be paid by the consumers. Compute the government revenue
and the deadweight loss generated by this tax.

Consider a closed economy. Suppose the market for corn in banana
republic is competitive. The domestic market demand function for
corn is Qd=18 -P and the domestic market supply function is Qs=P-2,
both measured in billions of bushels per year. In order to help the
corn industry, the government initiated a price support program by
purchasing 2 billion bushels corn in the market.
a) draw a graph to show the new market equilibrium
price and quantity without calculating the number....

The inverse demand curve for delivery meals is: Pd=18-3Qd the
inverse supply curve is: Ps=3Qs where p is price of meal in
dollars, Q is quantity in thousands of meals
a.) solve for equilibrium price and quantity
b.) draw the supply and demand curves and the equilibrium
outcome on axes below and label graph
c.) Calculate the consumer surplus and producer surplus in this
market, and show them on the set of axes above.
d.) suppose the government imposes a...

Demand function: P = 7 – 2Q Supply function: P = 4 + Q Where P
is the farm price in $/bushel and Q is quantity in billions
(1,000,000,000s) of bushels sold. 1. a. Graph the Demand and Supply
curves for wheat and find the equilibrium price and quantity of
wheat sold in this competitive market. You can solve graphically or
algebraically as two equations with two unknowns. Show your
calculations.

The quantity of wheat, in billions of bushels, that wheat
suppliers are willing to produce in a year and offer for sale is
called the quantity supplied and is denoted by S.
The quantity supplied is determined by the price P of
wheat, in dollars per bushel, and the relation is
P = 2.13S ? 0.95.
The quantity of wheat, in billions of bushels, that wheat consumers
are willing to purchase in a year is called the quantity
demandedand is...

Q: The domestic demand for salmon in the U.S. has an inverse
demand curve of p = 150 -3Q. The domestic supply of salmon has an
inverse supply curve of p = .50Q. The price is $ per pound of
salmon and Q is in millions of pounds of salmon. Assume that the
market for salmon is perfectly competitive in a global
marketplace.
a. Provide a graph of the domestic supply and demand for salmon
and then calculate and show...

Deadweight Loss] Suppose the market for corn in Banana Republic
is competitive. The domestic supply and demand function of corn is
Qs = 10P and Qd = 100 − 10P, respectively. Both of them measured in
billions of bushels per year.
(a) Calculate the equilibrium price and quantity,
consumer surplus (CS), and producer surplus (PS).
(b) Suppose the government offers a subsidy of $2 per
bushel to the firms. In equilibrium, the consumers are paying $4
per bushel and the...

PREPARE A GRAPH WHICH SHOWS THE DEMAND AND SUPPLY FOR
A WHEAT WHERE THE TWO CURVES INTERSECT AT THE POINT OF EQUILIBRIUM.
INDICATE, SURPLUS AND SHORTAGE ON THE GRAPH.
DATA:
THE QUANTITIES OF WHEAT FARMERS WILL SUPPLY AT VARIOUS
PRICES: TABLE-1
PRICE PER
BUSHEL
BUSHELS SUPPLIED PER YEAR
DOLLARS………………………………………..12,000
4. DOLLARS………………………………………..10,000
3. DOLLARS………………………………………….7,000
2. DOLLARS………………………………………….4,000
1.
DOLLAR……………………………………………1,000
THE QUANTITIES OF WHEAT CONSUMERS WILL PURCHASE AT
VARIOUS PRICES
PRICE PER
BUSHEL.
BUSHELS DEMANDED PER YEAR
------------------------------------------------------------------------------------------
...

Suppose that the demand curve for wheat is Q=100−10p and the
supply curve is Q=10p. The government imposes a price ceiling of
p=3
i) Describe how the equilibrium changes. ii) What effect does
this price ceiling have on consumer surplus, producer surplus, and
deadweight loss?

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