A B D F OD+E +F B+D+F E A+B+D S The above graph represents a market for apples. What is the producer surplus after the price floor is enforced? D Price floor
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- The weeknight demand for beer in Georgetown is given by Q,=13,500-1,500P while the supply for beer can be described by Q=3000P. A government-commissioned study found that wondering bands of inebriated Georgetown students with aggressive electric-scooter ridership has creating an additional negative social cost of $1 per-beer sold. Graphically identify and mathematically measure any deadweight loss from the beer market in Georgetown.Your grandmother likes old-fashioned yard salesand doesn’t understand why everyone is so excitedabout eBay. Explain to her why the creation of amarket that enables people who don’t live in thesame town to buy and sell used goods increasestotal surplus over the yard-sale market.Suppose the demand and the supply for lumber (harvested wood processed in a sawmill) used for construction in Australia are given byQD =100 – 2PQS = 1/2PAssume also that the market is perfectly competitive. the government introduces a subsidy of s=5 per unit of lumber transacted in the market. Calculate the deadweight loss caused by the subsidy and illustrate it in a graph. Who benefits more from the subsidy, consumers or producers? Why?
- A. The demand curve for a product is D = -2p + 800 , where the demand is units , and p is the price in $ . When the price is $ 100 , calculate the consumer surplus . Also , show a graph that indicates the consumer surplus . B. The supply curve for a product is S = 5p - 400 , where the supply is 5 units , and p is the price in $ . When the price is $ 200 , calculate the producer surplus . Also , show a graph that indicates the producer surplusIf Sam is willing to pay $50 for one good X, $30 for a second, $20 for a third, $8 for a fourth, and the market price is $10, then Sam’s consumer surplus isa. $10. b. $40. c. $70. d. $100. PreviousNextConsider the market for gasoline. Referring to the graph, what is the deadweight loss from the market equilibrium in the absence of any market intervention from the government?a) Hb) A+B+D+Fc) F+Gd) E+D+F+G+He) D
- PDemand QDemand PSupply QSupply $10 0 $1 2 $9 3 $2 4 $8 6 $3 6 $7 9 $4 8 $6 12 $5 10 $5 15 $6 12 $4 18 $7 14 If the Government creates a quota of 6 units to reduce the consumption of the dangerous product, what will the price of the good be in the marketplace? How much deadweight loss is there? How much of the deadweight loss came from the consumers?Many governments subsidise electric vehicles. Draw two sup- ply and demand diagrams (one for electric vehicles and one for petrol- powered vehicles) to show the impact of an electric vehicle subsidy. As- sume that an increase in electric vehicles sales reduces petrol powered vehicles by the same amount. On these diagrams show: (a) The quantity of both types of vehicles before the subsidy. (b) The quantity of both types of vehicles after the subsidy. (c) The deadweight losses in both markets before and after the subsidy. 4. is a fuel excise or an electric vehicle subsidy a better policy response to address externalities associated with driving? Your answer should draw on the answers above and could also include: Which policy is simpler to administer. How the two policies impact use of other forms of transport (like public transport or riding a bike). Which policy is fairer. Any additional information that you would like to know to inform your decision Note:- Do not provide…What is the difference between the primary market and thesecondary market?
- True or false: Granting subsidy on food will increase social welfare. Explain your answer with a graph.Don't use chatgpt, I will 5 upvotes The diagram below shows the market for cheddar cheese. The government has imposed a price ceiling in the market at $2.4. Calculate the consumer surplusThe Australian government have suggested that they might need to increase GST to help fund the COVID-19 rescue package. GST is a tax on goods and services usually paid at the point of sale. Consider the market for bread. Suppose a loaf costs $4.15 and includes a 15-cent tax per loaf. q5-Why would this tax be both socially inefficient and inegalitarian? Use the concepts of deadweight loss and wealth inequality.
