Question

The inverse Demand is given by: P=30-0.25Q and the inverse
supply is given by: P=0.5Q-30. If a Price Floor of $12 is imposed,
then **Consumer Surplus** and **DWL**
are: (Hint: it helps to draw a graph for this question)

Select one:

a. CS=1728; DWL = 12

b. CS=648; DWL = 12

c. CS=1600; DWL = 6

d. CS=648; DWL = 24

e. None of the above

Answer #1

The inverse Demand is given by: P=40-0.2Q and the inverse supply
is given by: P=0.2Q-20. If a price ceiling of $6 is imposed, then
Producer surplus and DWL
are: (Hint: it helps to draw a graph for this
question).

Suppose demand for apartments in Honolulu is P=6000-0.5q and
supply is P=0.25q.
a. Derive the equilibrium price and quantity for apartments.
Show on a graph. Calculate the producer and consumer surplus.
b. If the city of Honolulu passes a rent control, forcing a rent
(or price) ceiling equal to $1600, what is the quantity supplied,
quantity demanded, and the shortage? Calculate the new consumer
surplus, producer surplus, and deadweight loss, and show these on
your graph.
c. If a black...

demands for necklace is given by P=90- 0.25Q and supply of
necklace is given by P= 10+ 0.15Q
draw the graph and show if if there is price ceiling at 30 what
will be consumer surplus and producer surplus

The demand function for a product is given by p=80-0.5Q and the
supply function is p=50+0.25Q, where p is the price and Q is the
quantity. Suppose that the government impose a tax of $15 on every
unit sold.
a) Find equilibrium price and quantity before imposing the
tax.
b) Find price of buyer and seller and the quantity sold in the
market after tax.
c) Find the tax burden on buyer and seller.
d) Find government revenue and deadweight...

Suppose demand for apartments in Honolulu is P=6600-0.5q and
supply is P=0.25q. Derive the equilibrium price and quantity for
apartments. Show on a graph. Calculate the producer and
consumer surplus. If the city of Honolulu passes a rent control,
forcing a rent (or price) ceiling equal to $1800, what is the
quantity supplied, quantity demanded, and the
shortage? Calculate the new consumer surplus, producer
surplus, and deadweight loss, and show these on your graph. If a
black market develops after the rent...

A monopoly is facing inverse demand given by P = 40−0.5Q and
marginal cost given by MC = 7+0.1Q. Illustrate these on the graph
and answer the questions below.
(a) If the monopolist is unable to price discriminate, what is
the profit-maximizing quantity? What is the price? What is consumer
surplus? Producer surplus? Deadweight loss?
(b) Suppose instead the monopolist is able to perfectly price
discriminate. How many units will be sold? What is consumer
surplus? Producer surplus? Deadweight loss?

the
inverse supply is p=.2Q-20 and inverse demand is P=40-.2Q. there is
a price floor of $12, what is the producer and consumer
surplus

Suppose the market demand is given by Q = 30 - 2P , and the market
supply is given by Q = - 15 + 3P a)What is the value of Consumer
Surplus when the market is in equilibrium? CS (euilibrium)=
b) Now suppose a Price Floor is set at $11. Calculate the
Consumer Surplus after the Price Floor is imposed. CS (Price
Floor)=

Again, consider the same scenario, with inverse demand curve and
P=30-Q and supply defined by P= 4Q. Calculate the demand price,
supply price, and equilibrium quantity, whether the intervention is
effective and draw diagrams in any three cases.
Consider a quantity quota Q= 3 imposed by the government
Consider a price ceiling of P= 20 imposed by the
government
Consider a price floor of P= 30 imposed by the government

Given a demand curve of P = 63 - 1.5Q and a supply curve of P =
3 + 0.5Q, with a tax of 24, solve for the percentage loss of
surplus for both consumers (Answer 1) and producers (Answer 2). The
formula for percentage loss is, for example, (CS - CSt)/CS.

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