A market has a demand function given by the equation Qd=180-2P, and a supply function given by the equation Qs= -15+ P. The market is government regulated with a price support per unit and production quotas. Due to good weather, there is an increase in the demand for the good. The new demand equation is Qd = 190-2p. The government is trying decide between two options: Maintain the number of quotas and let the market adjust or maintain the price support and increase in number of quotas. Suppose now the government decided to increase the number of quotas available to 72units, but it keeps the price support at the current level of $72. Calculate i) the consumer surplus ii) the producer surplus iii) deadweight loss

A market has a demand function given by the equation Qd=180-2P, and a supply function given by the equation Qs= -15+ P. The market is government regulated with a price support per unit and production quotas. Due to good weather, there is an increase in the demand for the good. The new demand equation is Qd = 190-2p. The government is trying decide between two options: Maintain the number of quotas and let the market adjust or maintain the price support and increase in number of quotas. Suppose now the government decided to increase the number of quotas available to 72units, but it keeps the price support at the current level of $72. Calculate i) the consumer surplus ii) the producer surplus iii) deadweight loss

Economics For Today

10th Edition

ISBN:9781337613040

Author:Tucker

Publisher:Tucker

ChapterP2: Microeconomics Fundamentals

Section: Chapter Questions

Problem 10KC

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A market has a demand function given by the equation Qd=180-2P, and a supply function given by the equation Qs=-15+P. The market is government regulated with price support per unit and production quotas. Due to good weather there is an increase in the demand for the good. The new demand equation is Qd=190-2P. The government is trying to device between these two options maintain the number of quotas and let the market adjust or maintain the price support and increase the number of quotas? Suppose that the government decides to maintain the number of quotas and let the market adjust. Calculate (I) price observed in the market (ii)the consumer surplus (iii) the producer surplus
A market has a demand function given by the equation Qd = 180 – 2P, and a supply function given by the equation Qs = –15 + P. The market is government-regulated with a price support per unit and production quotas. (a) If the price is set at $72 per unit, what production quota is needed to make sure there are no shortages or surpluses? (b) Calculate the deadweight loss Due to good weather, there is an increase in the demand for the good. The new demand equation is Qd = 190 – 2P. The government is trying to decide between two options: Maintain the number of quotas and let the market adjust, or Maintain the price support and increase the number of quotas. Suppose that the government decides to maintain the number of quotas and let the market adjust. (c) Calculate the(i) price observed in the market, (ii)the consumer and producer surplus (iii)deadweight loss
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A market has a demand function given by the equation Qd=180-2P and and a supply function given by the equation Qs=-15+P. The market is government regulated with a price support per unit and production quotas. (a)If the price is set at $72 per unit, what production quota is needed to make sure there are no shortages or surpluses? (b) considering the price support and the quota, calculate the consumer surplus
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A market has a demand function given the equation Qd =180 - 2p, and a supply function given by the equation Q = -15 + p. The market is government -regulated with a price support per unit and production quotas. (a) if the price is set at $72 per unit, calculate the deadweight loss
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Suppose the following demand and supply function of a commodity. 15 Qd = 55 - 5P Qs = -50 + 10P After imposing tax, the new supply function is Qs = -60 + 10P Find out the equilibrium price and quantity before tax. Find consumer and producer surplus before tax. Determine government revenue and dead weight loss after tax.
Please answer Part di, ii, iii. Thank you. A market has a demand function given by the equation Qd = 180 - 2p, and a supply function given by the equation Qs = -15 + P. The market is government regulated with a price support per unit and production quotas. (a) If the price is set at $72 per unit, what production quota is needed to make sure there are no shortgages or surpluses? Answer 36 (b) Considering th eprice support and the quota, calculate: (i) the consumer surplus Answer 324 (ii) the producer surplus Answer 1404 (iii) deadweight loss Answer 252 (c) Due to good weather, there is an increase in demand for the good. The new demand equation is Qd = 190 - 2P. The government is trying to decide between two options: Maintain the number of quotas and let the market adjust, or Maintain the price support and increase the number of quotas. Suppose that the government decided to maintain the number of quotas and let the market adjust calculate: (i) price observed in the market Answer…
Please answer Part C iii, iv. Thank you. A market has a demand function given by the equation Qd = 180 - 2p, and a supply function given by the equation Qs = -15 + P. The market is government regulated with a price support per unit and production quotas. (a) If the price is set at $72 per unit, what production quota is needed to make sure there are no shortgages or surpluses? Answer 36 (b) Considering th eprice support and the quota, calculate: (i) the consumer surplus Answer 324 (ii) the producer surplus Answer 1404 (iii) deadweight loss Answer 252 (c) Due to good weather, there is an increase in demand for the good. The new demand equation is Qd = 190 - 2P. The government is trying to decide between two options: Maintain the number of quotas and let the market adjust, or Maintain the price support and increase the number of quotas. Suppose that the government decided to maintain the number of quotas and let the market adjust calculate: (i) price observed in the market Answer 46…