Question

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.

Answer #1

The market demand and supply functions for milk are:
QD = 14 − 2P
and QS = − 1+P. If a price floor of
$6 is implemented, calculate the change in
producer surplus. How many surplus units of milk are being
produced? If the government purchases all the excess units at $6,
calculate the milk expenditures by government?

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...

Consider the market for butter in
Saudi Arabia. The demand and supply relations are given as
follows:
Demand:
QD = 12 - 2P
Supply:
Qs = 3P - 3.
P is the price of butter.
Calculate:
Equilibrium price _____________
2. Equilibrium quantity _____________
Consumer surplus
___________
4. Producer surplus ___________
Draw the demand and supply graphs. Show the equilibrium price
and quantity, consumer surplus and producer surplus in the graph
below. Graphs must be on scale.
Suppose government imposes...

The demand and supply for Fuji apples are given by
QD = 17,500 - 25 P and
QS = 10 P, where P is price
per pound and Q is pounds of apples. What is the consumer
surplus and producer surplus at the equilibrium?
A.
CS = $500,000; PS = $1,250,000
B.
CS = $750,000; PS = $1,250,000
C.
CS = $500,000; PS = $750,000
D.
CS = $1,250,000; PS = $500,000
The market for plywood is characterized by the...

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.

Suppose that a market has the following demand and supply
functions (normal): Qd = 10-P and Qs = 2P-2.
If the government imposed a $3/unit excise tax on producers in
this market, what would be the value of producer surplus?
If the government imposed a $3/unit excise tax on producers in
this market, what would be the value of consumer surplus?
If the government imposed a $3/unit excise tax on producers in
this market, what would be the DWL?
If...

The demand and supply for a good are respectively QD = 16 – 2P +
2I and QS = 2P – 4 with QD denoting the quantity demanded, QS the
quantity supplied, and P the price for the good. Suppose the
consumers’ income is I = 2. 6) Determine the price-elasticity of
demand if P = 2. 7) Determine the income-elasticity of demand if P
= 2. 8) Determine the price-elasticity of supply if P = 4. 9)
Determine consumers’...

Demand is given by: QD=60-P and Supply is:
QS=0.2P-1.2. If a price floor of $56 is
imposed, how many units of output (Q) are traded
in the market? Also, the size of the
shortage/surplus is:

Suppose demand and supply are given by Qd = 60 – P
and Qs = P -20
What are the equilibrium quantity and price in this
market?
Determine the quantity demanded, the quantity suppled, and the
magnitude of the surplus if a price floor of $50 is imposed in this
market.
Determine the quantity demanded, the quantity suppled, and the
magnitude of the shortage if a price celling of $32 is imposed in
this market. Also determine the full economic...

1. Subsidy. The market demand and supply
functions for cotton are: Qd = 10 - .04P and Qs = 38P - 20
a. Calculate the consumer and producer
surplus.
To assist cotton farmers, suppose a subsidy of $0.10 a unit is
implemented.
b. Calculate the new level of consumer
and producer surplus.
c. Did the increase in consumer
and producer surplus exceed the increased government spending
necessary to finance the subsidy?

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