Assume that demand in the market for consoles is QD = 1000 - P and supply is QS = 2P - 200. d) Suppose that the government imposed a $300 price ceiling on consoles. How many units are sold? e) What is consumer surplus now? What is producer surplus? What is the "deadweight loss" from this policy?
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Assume that
d) Suppose that the government imposed a $300
e) What is consumer surplus now? What is
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- The market for a particular consumer good has a demand function given by: q = 24 - p and supply given by p = q + q^2, where q is the quantity and p is the price. Question: If the government decided not to set the price, but instead imposed a tax on production of $1 per unit, effectively increasing the cost to supply by $1 dollar per unit for every level of quantity supplied, what would the new equilibrium quantity be?In a given town, demand for fish and supply of fish is given by P = 3,955 - 6 * Q and P = 1,012 + 24 * Q respectively. Here P and Q denote are fish price and fish quantity (in tons). What percentage of the total surplus goes to producers if the fish market is competitive?Suppose the market demand for TV remotes is given by the equation Qd = 100 – 2P, where P is the price and Qd is the number of TV remotes. If the market price of TV remotes is $40, then the quantity demanded equals _____ and the value of consumer surplus is _____. 40; $200 20; $100 100; $20 2; $40
- Which of the following is true? Once the equilibrium price and output is reached, all the mutually beneficial trade opportunities between suppliers and demanders will have taken place, and the sum of consumer and producer surplus is maximized. The deadweight loss of a tax is the difference between the lost consumer and producer surplus and the tax revenue generated. Those goods that are heavily taxed often have a relatively inelastic demand curve in the short run, so that the burden falls mainly on the buyer, and the deadweight loss to society is smaller than if the demand curve was more elastic. All of the above are true. Give the answer with proper explanation & Only typed AnswerThe market demand and supply equations for theme park in a city are given by P = 30 – 0.005QD and P = 10 + 0.005QS, where P is the price in dollars and QD is the quantity of theme-park tickets demanded and QS is the quantity of theme park ticket supplied. Given that the equilibrium price of theme park tickets is $20, equilibrium quantity of theme park tickets is 2000 and the consumer surplus is 10000 and producer surplus is 10000: Explain the implications of the welfare of consumers, producers and the society when the price of theme park ticket is fixed at $15. Support your answers with a graph of the theme park tickets market.Consider that the market for soybeans is defined by the following demand and supply equations: QD = 200 - 10P and QS = 20P - 100, where P is the price in dollars and Q measures the quantity in tons per quarter. The market is currently in equilibrium. Now consider that after much lobbying by the United Farmers Association, the government imposes a price control of $12.50 in this market, with no additional government support. 1.Given the current market environment, what is the total surplus in the market? 2.Describe the current market outcome. As the result of the government’s policy, the current market outcome is __________(efficient ? not efficient?). The quantity traded is __________(less than ? greater than ?) the quantity traded before the government intervention, and price sellers ( farmers) receive per ton is __________(equal to 10? equal to 12.50? less than 10? less than 12.50 and greater than 10?). Additionally, as a result of the government’s policy sellers seem to be…
- The market for N-95 masks is perfectly competitive. Market Demand is given by Q=389-2P and Market Supply is given by Q=2P. The government imposes a quota of 133 units. What is the maximum total surplus in the market with this quota?Suppose the demand & supply for the market for sweet potatoes is given by the following equations: Q_D=200-20 P & Q_S=30+30P where P is the price per lb. of sweet potatoes, Q_D is the quantity demanded for sweet potatoes and Q_S is the quantity supplied. 1.Calculate the consumer surplus at market price $4.00. 2.Calculate the producer surplus at price $4.00.If the demand of the condominiums demand is inelastic, that is, it is a normal good, and when the price of the condominiums will decrease, then the demand of the people for the product will increase because the consumer surplus will exist when the money spent by the people will be more as compared to the price which is to be charged for the product. As the price will decrease, the people will prefer to buy more because it is already a normal good and demand for more. Pertaining to the supply of Condominiums in response to the demand of Nagenyos, enumerate at least two (2) possible effects of the determinants of demand (a) price, (b) income, (c) prices of related goods like apartments and residential houses, and (d) consumer taste and expectation, and the determinants of supply (a) flexibility of inputs, (b) mobility of inputs, (c) ability to produce substitute and (d) time.
- In the graph above, if the maximum price is set at P1, what area(s) represent the producer surplus after implementing this policy? Question 15 options: a) Areas C+D+G b) Area G c) Areas G+D d) Area C e) Area DIn a competitive market, the following supply and demand equations are given: Supply P = 5 + 0.36Q Demand P = 100 - 0.04Q, where P represents price per unit in dollars, and Q represents rate of sales in units per Year. 1. I. Determine the equilibrium price and sales rate. Determine the deadweight loss that would result if the government were to impose a price ceiling of £40 per unit.Suppose the demand for football tickets at a local college is QD=60,000−500P and the supply of tickets is QS=20,000. Part 2 The market equilibrium price is $8080 and the equilibrium quantity is 2000020000 tickets. (Enter your responses as whole numbers.) Part 3 Total economic surplus in this market is $enter your response here. (Enter your response as a whole number.)
