2. Let (inverse) demand be Pb = 82 - 4 Qb and (inverse) supply be Pv = 33 + 2 Qv. How much producer surplus is created in the market depicted? Answer: your answer Submit Price ($) $90 $80 $70 $ 60 $50 $40 $30 $20 $10 $0 gee es -O 0 5 Demand 10 Supply Quantity 15 Eqm 20 25
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- Assume, the market price of milk is R.O 1.5 per liter. At this price, the buyers and sellers are able to buy and sell whatever they want. There is no shortage or surplus of milk in the market. From this context, analyze the statements given below and choose the correct statement. a. All of the options b. The price R.O 1.5 is the market clearing price of milk c. At the price R.O 1.5, the demand and supply of milk will be equal d. The price R.O 1.5 is the equilibrium price of milkADVANCED ANALYSIS Assume that demand for a commodity is represented by the equation P=75−2Qd.P=75−2Qd.Supply is represented by the equation P=−15+4Qs,P=−15+4Qs,where Qd and Qs are quantity demanded and quantity supplied, respectively, and P is price.Instructions: Round your answer for price to 2 decimal places and enter your quantity as a whole number.a. Using the equilibrium condition Qs = Qd, determine equilibrium price. b. Now determine equilibrium quantity.Suppose demand and supply are given by Qd = 60 − P and Qs = 1.0P − 20.a. What are the equilibrium quantity and price in this market?Equilibrium quantity: Equilibrium price: $ b. Determine the quantity demanded, the quantity supplied, and the magnitude of the surplus if a price floor of $50 is imposed in this market.Quantity demanded: Quantity supplied: Surplus: c. Determine the quantity demanded, the quantity supplied, and the magnitude of the shortage if a price ceiling of $32 is imposed in the market. Also, determine the full economic price paid by consumers.Quantity demanded: Quantity supplied: Shortage: Full economic price:
- Suppose demand and supply are given by Qd = 60 - P and Qs = 1.0P - 10.a. What are the equilibrium quantity and price in this market?Equilibrium quantity: Equilibrium price: $ b. Determine the quantity demanded, the quantity supplied, and the magnitude of the surplus if a price floor of $50 is imposed in this market.Quantity demanded: Quantity supplied: Surplus: c. Determine the quantity demanded, the quantity supplied, and the magnitude of the shortage if a price ceiling of $30 is imposed in the market. Also, determine the full economic price paid by consumers.Quantity demanded: Quantity supplied: Shortage: Full economic price: $3. Suppose that annual demand in the U.S. market for ice cream cones can be expressed as QD = 800 + .2I - 100P, where QD is the number of cones demanded in millions of cones, I equals average monthly income in dollars, and P is price in dollars per cone. Supply can be expressed as QS = 200 + 150P (with the same units for quantity and price). A. Graph the demand and supply curves for ice cream cones, assuming that average monthly income is $2,000, and solve for the equilibrium price and quantity. B. Now assume that average monthly income drops to $750 and supply is unchanged. Draw the new demand curve on the same graph as used in (a) above and solve for the new equilibrium price and quantity. How would you describe the shift in demand intuitivelySuppose demand and supply are given by Qd = 50 - P and Qs = 0.5P - 10.a. What are the equilibrium quantity and price in this market?Equilibrium quantity:Equilibrium price: $b. Determine the quantity demanded, the quantity supplied, and the magnitude of the surplus if a price floor of $42 is imposed in this market.Quantity demanded:Quantity supplied:Surplus:c. Determine the quantity demanded, the quantity supplied, and the magnitude of the shortage if a price ceiling of $30 is imposed in the market. Also, determine the full economic price paid by consumers.Quantity demanded:Quantity supplied:Shortage:Full economic price: $
- The table below shows the demand schedule for museum admissions in a small city. Price (per visit per person) $12 $ 11 $ 10 $ 9 $ 8 Quantity Demanded (thousands of person-visits per year) 9 10 11 12 Between the prices of $8 and S9, the elasticity of demand is O A. 0.9 О B. 0.74 O C. 1.11 O D. 0. O E. 1.354. Compute and interpret the point elasticity of market supply of palay as price increases from Php 20 to Php 25. 5. Compute and interpret the arc elasticity of market supply of palay. 6. Among the producer groups in the Philippines, which group has the most elastic supply? Support your answer. 7. Assume that producers in Luzon can only produce 11 billion kg of palay at the time of harvest even if price reaches Php30 per kg, what will be the value of their own price elasticity of supply?8. Assume that the demand for films is given by Q = 45 − 2P and the supply is given byQ = 15 + P. What are the equilibrium price and quantity of films?(a) P = 10 and Q = 25(b) P = 12 and Q = 21(c) P = 12 and Q = 15(d) P = 25 and Q = 10(e) None of the above
- Questions 1-17 refer to below statement and demand and supply functions. Suppose that demand and supply curves for avocado in Brooklyn are as the followings: Qd = 144 − 24P Qs = -36 + 12P where Qd and Qs are quantities demanded and supplied in tons respectively, and P is the price of avocado in dollars per kg? 1) If price elasticity of demand for avocado at price P* is equal to -2/3, how much is P*? a) $2.00 b) $2.20 c) $2.40 d) $2.60 e) $2.80 2) What is quantity demanded at price P* at which price elasticity of demand for avocado equals -2/3? a) 82.2 tons b) 83.2 tons c) 84.4 tons d) 85.2 tons e) 86.4 tons 3) If price elasticity of supply for avocado at price P* is equal to 2.5, how much is P*? a) $2 b) $3 c) $4 d) $5 e) $6 4) What is quantity supplied at price P* at which price elasticity of supply for avocado equals 2.5? a) 6 tons b) 12 tons c) 18 tons d) 24 tons e) 30 tons 5) What is market clearing equilibrium price and quantity in Brooklyn avocado market? a) $3; 20…Let (inverse) demand be Pb= 101-3 Qb and (inverse) supply be Pv = 16+3 Qv. Consider the PRICE CEILING (P_low) depicted, what is the reduction in tradecaused by the PRICE CEILING?The market demand and supply functions for milk are: QD = 2,000 - 500P and QS = 800 + 100P. To help milk producers, the Department of Agriculture is considering legislation that would put a price floor at R2.25 per unit. . d) If this price floor is implemented, how many surplus units of milk are being produced? e) How much would government need to spend to purchase the surplus units? f) What is the change in consumer and producer surplus due to the price floor? g) When the government regulates the price of a good to be no lower than some minimum level. Can such a minimum price make producers as a whole worse off? Explain.