(3) Given the equilibrium price and demand (denoted by Po and Qo), the consumer surplus (CS) is defined as CS(Q.) = 26) - P(Q)dQ - PaQo. where P(Q) is determined by the demand function. Calculate the consumer surplus in equilibrium. (4) Given the equilibrium price and demand, the producer surplus (PS) is defined as PS(Q.) - P.Q. - P(Q)dQ. where P(Q) is determined by the supply function. Calculate the producer surplus in equilibrium. (5) The sum of consumer surplus and producer surplus under the price ceiling will be different from the sum of consumer surplus and producer surplus in equilibrium. Will the former sum increase or decrease in comparison to the latter sum? Give your reason(s).
Q: feedback and control system Explain how the economic concept known as "supply of law and demand"…
A: According to the law of supply," other things being constant there is a direct relationship between…
Q: 1z
A: The money supply is the supply of currency in an economy. The M1 money supply is the summation of…
Q: The difference between economic profit and accounting profit is that economic profit is calculated…
A: An explicit cost is the clearly stated costs that a business incurs. For example, employee wages,…
Q: 1 An economy has two workers, Bella and Edward. Per day of work, Bella can pick 30 apples or 120…
A: A) Bella can pick 30 apples or 120 bananas. So, Bella's opportunity cost of 30 apples is 120…
Q: Consider a Stackelberg game played by 3 firms: firm 1 moves first, then firm 2, and finally firm 3.…
A: The Stackelberg model is a management strategy that permits the dominant firm to establish its price…
Q: Consider an economy with two labor markets: one for manufacturing workers and one for service…
A: Wage rate is determined at the intersection of demand and supply of labor curves.
Q: 9 onypont at which demandourvetouches ATC crve west point on ATC arve 45-4 Q₂ Quantity Refer to…
A: Firm gets profit maximised when it achieves equilibrium point where Marginal cost = marginal revenue…
Q: Holiday Assignment 1. me reaning of Equilibrum price and price determination. - making use of…
A: "Since you have posted multiple questions, we will solve the first question for you. If you want any…
Q: In recessions, tax revenues tend to decline and transfer payments like unemployment insurance and…
A:
Q: From the information in the table below, calculate the following statistics. Personal…
A: The Expenditure approach, which measures GDP as total expenditure on the generated final product and…
Q: A company sells three types of products for $20, $15, and $10 per unit. In 1 year, the total revenue…
A: Total revenue is the total receipts collected from the sale of the goods and services in the market.…
Q: Consider the utility maximization problem max U(x, y)=√x+y s.t. x+4y= 100. (a) Using the Lagrange…
A: A consumer is in equilibrium when he maximize his utility with given income and market prices and…
Q: Confidential 5. In a small open economy, desired national saving, Sd = $10B + $100B X desired…
A: A small open economy, truncated to SOE, is an economy that partakes in global exchange, however, it…
Q: Initial project set-up costs are estimated to be SEK15m (year 0 - 2023). Further estimated operating…
A: Taking into consideration the increase in costs at their respective rates we get - YEAR OC…
Q: Lilly deposits $800 every month into an account that earns 5% annual interest where interest is…
A: We can calculate the amount at the end of 4 years semi-annually with the help of the following…
Q: In a two-period model, suppose that a consumer's utility function is: U(C₁, C₂) = log(c₁) + log(c₂)…
A: Given information U(C1,C2)=log C1+LogC2 It is intertemporal model of 2 period C1= consumption in…
Q: Using the supply and demand analysis of the market for reserves, indicate how the following…
A: Meaning of Demand and Supply: The term demand refers to the willingness of an individual to…
Q: [CLO-6] Which investment project is guaranteed to be accepted for an evaluation useful life of 6…
A: MARR is the the minimum acceptable rate of return. Below MARR firm will not accept any investment.…
Q: HEAD and Dunlop set prices simultaneously for their respective tennis rackets. Let p₁ ≥ 0 denote the…
A: The best response in economics or game theory is the strategy (or strategies) that generates the…
Q: On August 8, 2000, Zimbabwe changed the value of the Zimbabwe dollar from Z$38∕US$ to Z$50∕US$.…
A: The exchange rate is the rate at which one currency is exchanged with the other. We have been given…
Q: Using the theory of liquidity preference what effect does an increase in the money supply has on the…
A: Equilibrium interest rate is determined by the demand and supply of money.
Q: Explain the central paradox at the heart of the Solow model, with constant and exogenous…
A: The neoclassical growth approach directs general terms directing to the models for economic growth…
Q: Dali enjoys cool drink (c) and steak (s) for lunch. His monthly lunch budget is R600. His total…
A: "In order to meet their needs, consumers purchase goods and services. The consumer equilibrium is…
Q: Problem 3 20 The engineering department estimates that waste treatment costs will be $50,000 for the…
A:
Q: An American airplane manufacturer sells a new airplane to a Japanese airline. From the perspective…
A: Manufacturing Manufacturing is the process of transformation of raw materials or parts into…
Q: Select one: O a. An increase in productivity and an increase in the number of employed persons O b.…
A: Introduction GDP of a country is defined as the final monetary value of GOODS and Services Produced…
Q: Question #2: 2) Your company purchases a new CNC machine for $100,000 today (beginning Year 0). In 8…
A: To find the total cost per part we need to find aggregate annual cost of the CNC machine . Initial…
Q: is the market model that would best describe local telephone, electric, or gas utilities. Multiple…
A: Market is the place where buyer and seller interacts to exchange the goods and service at certain…
Q: Which type of medical services suffers LEAST from the uncertainty problem? preventative services…
A: Uncertainty Problem is the situation where you do something about which you are not sure which leads…
Q: Question 16 Assume the United States is a large consumer of steel that is able to influence the…
A: Equilibrium in the market occurs at the intersection of demand and supply curves.
Q: Is the following statement true or false? Given is the graph below of the oil market. Without the…
A: Without the tax, the point where the demand and supply curve intersects is called the equilibrium…
Q: 7. On January 12th 2010 a devastating earthquake with a magnitude of 7.3 struck Haiti. As a result,…
A:
Q: Production Function: q=32n+2nl+16l n is the size of net l is the hours of labor employed Total…
A: Given Production function: q=32n+2nl+16l ... (1) Total cost function: C=14+2n2+4l2 ...…
Q: Question 3 A company produces three products which must be processed through three departments. The…
A: Hi! Thank you for the question. As per the honor code, We’ll answer the first question since the…
Q: What is the interest due on 200000pesos for 5 years and 3 months if it bears 14% ordmary simple…
A: Simple interest refers to the interest that is paid on principal. Principal gets converted to an…
Q: Let's assume that the table below represents the market shares for the smart phone market. Firm…
A: Ans. The four-firm concentration ratio (CR4) is the measure of the degree of the concentration of…
Q: Discuss Okun's law and Philip's Curve
A: Okun law in a economics states that there exist a statistical relationship between unemployment rate…
Q: Discuss "MARKET ECONOMY (CAPITALISM)" with definition, characteristics, examples, advantages and…
A: Economic system refers to the type of system prevailing in the economy. There are three types of…
Q: our Dad has offered to give you some money and asks that you choose one of the following two…
A: The term "time value of money" refers to the fact that money in the present is worth more than money…
Q: At a price of $4.86 per pound, the supply for cherries is 16,205 pounds, and the demand is 10,340…
A:
Q: Consider the following data for a particular economy: GDPmp = 950 Private consumption = 750 Gross…
A: According to the question, it is given that : GDP at market price = 950 Private consumption = 750…
Q: If the four firms listed below represent the entire auto market, how many cars wi supplied at a…
A: Market supply refers to the horizontal sum of individual supply.
Q: The wage rate (w) is $10 and the rental rate uppose that a firm had a production function given by:…
A: A firm produces output in the cost minimizing way when it used that quantity of two inputs (Labor…
Q: occurs when workers have left long term jobs but have not fully withdrawn from the workforce.
A: Answer: Note: only an incomplete statement is given thus it seems to be a fill-in-the-blank. Bridge…
Q: A government should implement profound reforms to the labor market, complementary to the elimination…
A: The basic requirement a producer needs is labour and capital. Here the labour is the variable cost…
Q: A10
A: Keynesian theory predicts that the economy is below the full employment level of output. The economy…
Q: If the law of diminishing returns did not hold, we can produce a the food the world needs in one…
A: In economics, diminishing returns is the decrease in marginal output of a production process as the…
Q: The quantity demanded, Q, of a monopolist’s product is a function of price, P, as given by the…
A: Monopoly is the single firm in the market producing unique good.
Q: Let CPI, represent CPI in period t and let CPI₁+1 represent the CPI in period t + 1. CPI inflation…
A: Note:- Since we can only answer one question at a time, we'll answer the first one. Please repost…
Q: The consumers' burden associated with an excise tax will be largest when demand is OA. vertical. B.…
A: The consumer's burden associated with an excise tax will be the largest when demand is vertical.
part 3 4 5
Trending now
This is a popular solution!
Step by step
Solved in 5 steps with 4 images
- Consider the following linear demand function where QD = quantity demanded, P = selling price, and Y = disposable income: QD = -36 - 2.1P + .24Y. The coefficient of Y (i.e., .24) indicates that (all other things being held constant): * for a one percent increase in disposable income, quantity demanded would increase by 0.24 percent for a one unit increase in disposable income, quantity demanded would increase by 2.1 units for a one percent increase in disposable income, quantity demanded would decline by 2.1 percent for a one percent increase in disposable income, quantity demanded would decline by 0.24 percentAssume the Supply of Kidneys is expressed as: Qs = 800 +.2P Assume the Demand for Kidneys is expressed as: Qd = 16,000 - .2P Due to the 1984 act prohibiting the purchase and sale of organs for transplant, supply will be limited to the number of kidneys individuals will donate (the number of kidneys donated when the price = 0) Graphically, show the supply and demand for kidneys before prohibition. Solve algebraically for the equilibrium price and quantity. How many kidneys will be available for transparent given the prohibition of selling a kidney in the market? Draw in what the new supply curve will look like. Will a shortage or surplus of kidneys result? What happens to the opportunity cost of acquiring a kidney?Suppose that the market demand for Turkey is given by: Q_(T)=2-8P_(T)+2P_(C)+0.0015I Where Q_(T) is annual quantity demanded of turkey in million pounds, P_(T) is the price of turkey per pound, P_(C) is price of chicken per pound, and I is the average household income in dollars per year. a. Find the annual quantity demanded of turkey if the price turkey is $2.00 per pound, price of chicken is $1.50 per pound and the annual household income is $30,000.
- Suppose that the demand curve for a product is given by Qdx=100-2Px+aPy where Px = £20, where Py = £20 is the price of another product, and where a is 0. Calculate the demand for good X in this market at the current price level. How much revenue would the firm make? If the firm wishes to increase total revenue, would it need to increase or decrease the current price of good X? Calculate the cross-price point elasticity between goods X and Y at the current price level. Are the goods complements or substitutes?An analyst for FoodMax estimates that the demand for its Brand X potato chips is given by ln QdX = 12.14 – 2.8 ln PX + 3.4PY + 0.7 ln AX, where Qx and PX are the respective quantity and price of a four-ounce bag of Brand X potato chips, PY is the price of a six-ounce bag sold by its only competitor, and AX is FoodMax’s level of advertising on Brand X potato chips. Last year, FoodMax sold 7 million bags of Brand X chips and spent $0.42 million on advertising. Its plant lease is $2.1 million (this annual contract includes utilities) and its depreciation charge for capital equipment was $2.8 million; payments to employees (all of whom earn annual salaries) were $0.8 million. The only other costs associated with manufacturing and distributing Brand X chips are the costs of raw potatoes, peanut oil, and bags; last year FoodMax spent $2.8 million on these items, which were purchased in competitive input markets. Based on this information, what is the profit-maximizing price for a bag of…Suppose household annual demand for gasoline follows the equation QD = 2000 – 500P + 25I where P is the price of a gallon of gasoline and I is household income in 1000s of dollars. Suppose that P = 3 and I = 60. What quantity of gasoline will households demand at this price and income level? __________ What is the income elasticity of demand for gasoline at this price, income, and quantity level? __________ What happens to the income elasticity of gasoline demand if I rises from 60 to 100? It _____________ (rises/falls) to ______________. Does this change in elasticity make gasoline buying more or less sensitive to income changes? __________
- **Answer bolded questions only please** The following relations describe monthly demand and supply for a computer support service to small businesses: Qd=3000-10P Qs=-1000+10P whrer Q is the number of businesses that need services and P is the monthly fee, in dollars. a. The average monthly fee where demand equal zero. $300 b. The average monthly fee where supply equal zero. $100 d. what is the equilibrium price/output level? e. Suppose demand increases and leads to a new demand curve: Qd = 3500 - 10P f. Suppose new suppliers enter the market due to the increase in demand so the new suply curve is Q=-500+10P. What are the new equilibrium price and equilibrium quantity? g. Show changes on the graph.In a particular market, demand and supply curves are defined by the following equations: P=50 – 0.5QD QS= -20 + 2P where, P is the price in pounds, QS is the quantity supplied and QD is the quantity demanded. 1. What is the equilibrium price and quantity? 2. What is the price elasticity at a price of £35? 3. What do you expect will happen to total expenditure on this good if the price increases from £35 to £40? Is this expectation confirmed if you calculate the total revenue for each price?Suppose the generalized demand function for good X is Qd=60-2Px+0.01M+7Pr a.Suppose M=40,000 and Pr=20 what is the direct demand function b.Suppose the supply function is Qs=-600+10Px, what are the equilibrium price and quantity? c.What happens to equilibrium price and quantity if other things remain the same as in part (b) but income increases to 52,000? d.What happens to equilibrium price and quantity if other things remain the same as in part (b) but the price of the related good decrease to 14? e.What happens to equilibrium price and quantity if other thing remain the same, income and price of related goods are at their original levels and supply shifts to Qs=-360+10Px?
- The demand function for apples is the following. Qn = 10 – Pn + 0.2Y +0.5 Pc – 2Ps + 0.2A Where: Qn = annual sales of apples (millions of kilos) Pn = price of apples (£1 per kilo) Y = disposable income in the UK £trillions (£10 trillions) Pc = price of a pies £ per kilo (£2 per kilo) Ps = price of pear (£2 per kilo) A = advertising measured in hundreds of thousands of £5 (use as 5 in your calculations) What is the demanded quantity for apple now, based on this equation? a. 3 million kilos b. 6 million kilos c. 9 million kilos d. 12 million kilos e. All the other answers are wrong.The table below shows two demand schedules for a given style of men's shoe- that is, how many pairs per month will be demanded at various prices at a men's clothing store in Seattle called Stromnord. price D1 Quantity Demanded D2 Quantity Demanded $ 75 53 13 70 60 15 65 68 18 60 77 22 55 87 27 Suppose that Stromnord has exactly 65 pairs of this style of shoe in inventory at the satrt of the month of July and will not receive any more pairs of this style until at least August 1. Instructions: Enter your answers as whole numbers 1). If demand is D1 what is the lowest price that Stromnord can charge so that it will not run out of this model of shoe in the month of July? What if demand is D2? 2) If the price of shoes is set at $ 75 for both July and August and demand will be D2 in July and D1 in August, how many pairs of shoes should Stormnord order if it wants to end the month of August with exactly zero pairs of shoes in its inventory? What if the price is set at $ 55…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…