Question

The demand for sunglasses is given by D(p) = 100 − 2 p and the supply...

The demand for sunglasses is given by D(p) = 100 − 2 p and the supply curve is given by S(p) =3p

(a) Compute the equilibrium price and equilibrium quantity of sunglasses.

(b) Sketch both the demand and supply curves on the same graph (be sure to label your axes correctly).

(c) Determine the value of consumer surplus and producer surplus at the equilibrium values. Suppose all sunglasses are imported from China. Suppose also that the government imposes an import tariff of $10 per unit. Show working

(d) Determine the new equilibrium values of price and quality. show working

(e) Determine the tariff’s impact on consumer surplus, producer surplus, and total surplus.

Business   Economics   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

D. The new equlibrium price is 30 and equilibrium quantity is 40

E. After tariff the consumer surplus reduces, the producer surplus reduces and total surplus also reduces.

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Consider the market for butter in Saudi Arabia. The demand and supply relations are given as...
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...
4. Suppose the domestic supply and demand curves for petroleum in the U.S. are, Qs =...
4. Suppose the domestic supply and demand curves for petroleum in the U.S. are, Qs = 10P - 300 Qd = 3000 - 20P Let the world trade price be $50 per barrel. 1) What is the equilibrium quantity of imports? 2) Suppose a specific tariff of $10 per barrel is imposed. Calculate Consumer surplus, producer surplus, and tariff revenue. 3) Suppose the government imposes an import quota of 1200 units of barrels. Find the trading price for petroleum.
Given the previous questions with a world price of 34, and the domestic demand and supply...
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...
Suppose the world price for a good is 40 and the domestic demand-and-supply curves are given...
Suppose the world price for a good is 40 and the domestic demand-and-supply curves are given by the following equations: Demand: P = 80 – 2Q Supply: P = 5 + 3Q a.   How much is consumed? b.   How much is produced at home? c.   What are the values of consumer and producer surplus? d.   If a tariff of 10 percent is imposed, by how much do consumption and domestic production change? e.   What is the change in consumer and...
Suppose the demand and supply for a product is given by the following equations: p=d(q)=−0.8q+150 (Demand)...
Suppose the demand and supply for a product is given by the following equations: p=d(q)=−0.8q+150 (Demand) p=s(q)=5.2q (Supply) For both functions, q is the quantity and p is the price. Find the equilibrium point. (Equilibrium price and equilibrium quantity) (1.5 Marks) Compute the consumer surplus. (1.5 Marks) Compute the producer surplus. (1.5 Marks)
The market for apples is perfectly competitive, with the market supply curve is given by P...
The market for apples is perfectly competitive, with the market supply curve is given by P = 1/8Q and the market demand curve is given by P = 40 – 1/2Q. a. Find the equilibrium price and quantity, and calculate the resulting consumer surplus and producer surplus. Indicate the consumer surplus and producer surplus on the demand and supply diagram. b. Suppose the government imposes a 10 dollars of sale tax on the consumer. What will the new market price...
The inverse demand curve for delivery meals is: Pd=18-3Qd the inverse supply curve is: Ps=3Qs where...
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...
Suppose that the world price for a good is 120 and the domestic demand-and-supply curves are...
Suppose that the world price for a good is 120 and the domestic demand-and-supply curves are given by the following equations: Demand: P = 200 – 8Q Supply: P = 20 + 10Q       a. How much is domestic consumption?       b. How much is domestic production?       c. Calculate the values of consumer and producer surplus.       d. If a tariff of 30% is imposed, how much do consumption and domestic production change?       e. What is the change...
Suppose the market demand for a commodity is given by the download sloping linear demand function:...
Suppose the market demand for a commodity is given by the download sloping linear demand function: P(Q) = 3000 - 6Q where P is a price and Q is quantity. Furthermore, suppose the market supply curve is given by the equation: P(Q) = 4Q a) Calculate the equilibrium price, quantity, consumer surplus and producer surplus. b) Given the equilibrium price calculated above (say's P*), suppose the government imposes a price floor given by P' > P*. Pick any such P'...
Suppose the demand curve is given by Qd=75-5P and the supply curve is given by Qs=P-3....
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.
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT