Question

Suppose that in the market of bananas, quantity demanded is represented by Qd = 100 − 2p, and quantity supplied is represented by Qs = 2p + 4. If the government provides a subsidy of $2 per banana, which if the following is correct?

(a) Bananas price fall by $1 and 2 more bananas will be sold

(b) Bananas price will fall by $1, and 2 fewer bananas will be sold

(c) Bananas price will rise by $18 and 2 more banana will be sold

(d) The change in price will depend on whether the subsidy is given to the producer or the consumer

(e) None of the above

Answer #1

Qd = 240 - 5P
Qs = P
(a) Where Qd is the quantity demanded, Qs is the quantity
supplied and P is the Price. Find:
(1) the Equilibrium Price before the tax
(2) the Equilibrium quantity before the tax
(3) buyers reservation price
(4) sellers reservation price
(5) consumer's surplus before tax
(6) producer's surplus before tax
(b) Suppose that the government decides to impose a tax of $12
per unit on seller's in the market.
Determine:
(1) Demand...

Assume that the demand for a commodity is represented by the
equation Qd = 300-50P and supply by the equation Qs= -100+150P
where Qd and Qs are quantity demanded and quantity supplied,
respectively, and P is price. Using equilibrium condition Qd = Qs,
solve the equation to determine equilibrium price and quantity.

Suppose Qd=40-P and Qs= -2+2P. If Price equals 20, quantity
demanded will be
Question 16 options:
22
18
40
10
20
Question 17 (1 point)
Suppose Qd=40-P and Qs= -2+2P. What is the equilibrium price in
this market?
Question 17 options:
14
2
13
20
12.66
Question 18 (1 point)
Suppose Qd=40-P and Qs= -2+2P. What is the consumer surplus at
equilibrium?
Question 18 options:
39
676
169
338
14
Assume at a price of $22, consumer bought 180 units...

Consider a market that can be represented by a linear demand
curve, QD = 200 – 2PD, (where QD is the quantity demanded and PD is
the price that demanders pay) and a linear supply curve that QS = ½
PS (where QS is the quantity supplied and PS is the price that
suppliers get).
a. What is the equilibrium price?
b. What is the equilibrium quantity?
c. What is demand elasticity at the equilibrium point?

A market is described by the following supply and demand
curves:
QS = 2P
QD = 400 - 3P
Solve for the equilibrium price and quantity.
If the government imposes a price ceiling of $70, does a
shortage or surplus (or neither) develop? What are the price,
quantity supplied, quantity demanded, and size of the shortage or
surplus?
If the government imposes a price floor of $70, does a shortage
or surplus (or neither) develop? What are the price, quantity...

Suppose there is a market at its competitive equilibrium.
Demand p = 100 - QD
Supply p = 20 + (QS /3) The government introduces a subsidy of s
= $4 per unit of the good sold and bought.
(a) Draw the graph for the demand and supply before subsidy.
(b) What is the equilibrium price and quantity before the
subsidy and after the subsidy?
(c) Looking at the prices buyers pay and sellers receive after
the subsidy compared to...

Suppose the corn market has the following equations: QD = 3000 -
400P QS = 900 + 300P Where QD and QS are quantity demanded and
quantity supplied measured in bushels, and P = price per
bushel.
Determine consumer surplus at the equilibrium price and
quantity. 6 marks
Assume that the government has imposed a price floor at $3.50
per bushel and agrees to buy any resulting excess supply. How many
bushels of corns will the government be forced to...

55)Suppose Qs is the quantity supplied at a given price
for brown rice and Qd is the quantity demanded at the same given
price for brown rice. Which of the following market conditions
produces an upward movement of the price for brown
rice?
(a)Qs =1,000, Qd =860
(b)Qs =850, Qd=850
(c)Qs=750, Qd=1,000
(d)Qs=1,000, Qd=1,000
(57)Which of the following pairs of goods would be
considered complementary?
(a)Coca-Cola and Pepsi
(b)Radios and Televisions
(c)Computers and computer software
(d)Compact discs and cassette tapes...

1. Consider a demand curve of the form QD = 40 - 2P, where QD is
the quantity demanded and P is the price of the good. The supply
curve takes the form of QS = -4 + 2P, where QS is the quantity
supplied, and P is the price of the good. Be sure to put P on the
vertical axis and Q on the horizontal axis. a. What is the
equilibrium price and quantity? Draw out the supply...

6. Suppose the demand equation can be represented as QD = 1200 –
10p and the Supply equation by Qs= 10p.
a. Solve for the equilibrium price and quantity.
b. Say an excise tax of $5 was placed on the buyers. Solve for
the price buyers pay, price that sellers receive, and the quantity
sold in the market after the tax. Show your work and results
graphically.
c. Find the deadweight loss, consumer surplus, producer surplus,
consumer surplus, and tax...

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