Assume Country X has an electricity market with supply and demand being given below: Qo--Po + 200 Os =-3P, + 300 Part 8- vertically integrated market the government decides to reform the electricity market so that there are a number of power plant using an auction system. A sample of the bids is given by the table below: Electricity Producers Electricity Distribution Asking price / KWh quantity/KWh Asking price/ KWh quantity/KWh 25 20 35 30 60 0.74 0.56 0.32 0.34 0.55 0.46 25 0.53 25 0.64 25 0.64 30 0.43 40 By studying the bids, 9. Find the range of the equilibrium market price 10. Find the equilibrium market quantity 11. Find the total welfare

Assume Country X has an electricity market with supply and demand being given below: Qo--Po + 200 Os =-3P, + 300 Part 8- vertically integrated market the government decides to reform the electricity market so that there are a number of power plant using an auction system. A sample of the bids is given by the table below: Electricity Producers Electricity Distribution Asking price / KWh quantity/KWh Asking price/ KWh quantity/KWh 25 20 35 30 60 0.74 0.56 0.32 0.34 0.55 0.46 25 0.53 25 0.64 25 0.64 30 0.43 40 By studying the bids, 9. Find the range of the equilibrium market price 10. Find the equilibrium market quantity 11. Find the total welfare

Microeconomics A Contemporary Intro

10th Edition

ISBN:9781285635101

Author:MCEACHERN

Publisher:MCEACHERN

Chapter3: Economic Decision Makers

Section: Chapter Questions

Problem 16PAE

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The supply and demand curves for bananas are as follows: QD = 3,750 - 725P QS = 920 + 690P where Q = millions of bushels and P = price per bushel. a) Calculate the equilibrium price and quantity that would prevail in the free market. b) The government has imposed a $2.80 per bushel support price. How much bananas will the government be forced to purchase? c) Calculate the change (gain/loss) in consumer surplus that would occur due to the support program. Does the consumer surplus increase or decrease under the program?
Demand and supply for television use (pay per view) by choice is described by the following demand and supply functions (v represents price per item) Demand = 198 - 2v Supply = -2 + 2v The world market price for TV use is € 30. Price per item. c) decision is now made to impose a 30% duty on the world market price of imports (foreign streaming services), but the government has now found that traditional duty can be collected through credit card companies transactions (no VAT). i) What will be the price, imports, demand and domestic supply. ii) What will be the macroeconomic loss due to duty compared to free trade without VAT?
Demand and supply for television use (pay per view) by choice is described by the following demand and supply functions (v represents price per item) Demand = 198 - 2v Supply = -2 + 2v The world market price for TV use is € 30. Price per item. a) decision is now made to impose a 30% duty on the world market price of imports (foreign streaming services), but the government has now found that traditional duty can be collected through credit card companies transactions (no VAT). i) What will be the price, imports, demand and domestic supply. ii) What will be the macroeconomic loss due to duty compared to free trade without VAT?
The equation of demand is Q=10000-5p, supply is Q=-2000+10p Q represents the quantity of houses on the market and P the rental price. The equilibriumrental price equals 800 euros per month. If the government gives people a housing allowance of 300 euros per month，What are the effects of each measure for both house owners and people renting ahouse? And what are the consequences for the government? Analyse the measuresgraphically and mathematically.
Demand and supply for television use (pay per view) by choice is described by the following demand and supply functions (v represents price per item) Demand = 198 - 2v Supply = -2 + 2v The world market price for TV use is € 30. Price per item. a) decision is now made to impose a 30% duty on the world market price of imports. But the government has now found that traditional duty can be collected through credit card companies transactions (no VAT). i) What will be the price, imports, demand and domestic supply. ii) What will be the macroeconomic loss due to duty compared to free trade without VAT?
A more precise description of the demand conditions show that it also depends on a number of other factors, including the CO2 quota price, the interest rate and the price of electricity in the Nordic wholesale market, Nordpool. An overall demand function can thus be described as: Q = 33.33 - 0.000004167 * P + 0.04167 * PCO2 - 0.4167 * r - 0.00833 * Pel, where Q is the quantity sold, P is the price, PCO2 is the price of the EU's CO2 quotas, measured in euros per tonnes, cf. Chart 1, r is the banks' average lending rate measured in per cent. pa., and Pel is the Nordpool wholesale price of electricity excl. network and system tariffs as well as charges, measured as Danish kroner per MWh (mega-watt-time). P can here be set to DKK 4,000,000, PCO2 can be set to 62, r to 2.37 and Pel can be set to 250. Define the concept of price elasticity more generally and calculate the price elasticity as well as the cross-price elasticities with regard to the CO2 price, the interest rate…
in Iceland, demand and supply for television use (pay per view) by choice is described by the following demand and supply functions (v represents price per item) Demand = 198 - 2v Supply = -2 + 2v The world market price for TV use is ISK 30. Price per item. a) Calculate and draw a balance on a picture i) if no foreign trade is allowed and foreign providers are excluded by excluding IP addresses. (ii) if 14% VAT is levied on domestic broadcasters and foreign trade is prohibited. The tax is collected by consumers (no collection costs). What is the welfare loss from the tax? Show a picture. iii) how is the tax burden divided into point ii) and what are its explanations? b) Calculate domestic production, domestic consumption and import. Draw a picture and calculate and benefit from the opening of a business (pretend that there was no VAT for freedom).
in Iceland, demand and supply for television use (pay per view) by choice is described by the following demand and supply functions (v represents price per item) Demand = 198 - 2v Supply = -2 + 2v The world market price for TV use is ISK 30. Price per item. a) Calculate and draw a balance on a picture i) if no foreign trade is allowed and foreign providers are excluded by excluding IP addresses. (ii) if 14% VAT is levied on domestic broadcasters and foreign trade is prohibited. The tax is collected by consumers (no collection costs). What is the welfare loss from the tax? Show a picture. iii) how is the tax burden divided into point ii) and what are its explanations? b) Domestic tech nerds have avoided technical barriers to using foreign streaming services (VPN gymnastics) and the government does not have the ability to collect VAT on that use and subsequently decide to stop collecting VAT on domestic use: Calculate domestic production, domestic consumption and import. Draw a picture…
In the last 20 years, the copper market has undergone major changes. On the one hand, there have been important technological improvements aimed at increasing process productivity and, on the other hand, there has been a strong increase in demand, especially from emerging countries. Which of the following alternatives corresponds to what is explained in the text above?I. Explain that demand has increased more than supply has decreased for the period studied.II. The equilibrium price and quantity traded increased for the period studied.III. Demand increased by a greater magnitude than the increase in supply for the period studied.Select one:a. I and IIIb. I and IIc. I, II and IIId. III onlye. Only I Note: indicate in case your option is not among alternatives
The market for paper in a particular region in the United States is characterized by the following demand and supply curves: QD = 160000 - 2000P QS = 50000 + 2000P where QDis the quantity demanded in 100-pound lots, QS is the quantity supplied in 100-pound lots, and P is the price per 100-pound lot. Currently there is no attempt to regulate the dumping of effluent into streams and rivers by the paper mills. As a result, dumping is widespread. The marginal external cost (MEC) associated with the production of paper is given by the curve: MEC = 0.0006Qs Find the competetive equilibrium price and quantity with no attempt is made to monitor or regulate the dumping of effluent. Then find the socially efficient price and output of paper.
The annual demand and supply for liquor in a certain state is given by the following equation: Qd= 500,000 − 20,000P Qs=30,000P where P is the price per gallon and QD is quantity of gallons demanded per year. a. Suppose that a $1-per-gallon tax is levied on the price of liquor received by sellers. Use both graphic and algebraic techniques to show the impact of the tax on market equilibrium. b. Calculate (i) the excess burden of the tax, (ii) the amount of revenues collected, and (iii) the incidence of the tax between buyers and sellers.
Please answer questions a, b1 and b2. 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? (b) 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: price observed in the market the consumer surplus