Please refer to the image below and answer question 13 In each of the following markets find the market equilibrium. Calculate consumersurplus, producer surplus and total surplus. Then consider the effect of a price floor(or ceiling) imposed by the government. Find the quantity demanded Qd, quantitysupplied Qs and the corresponding surplus (or deficit) in the market. Find the effectof the policy on consumer, producer and total surplus.Demand:Supply:1 Q1 Q1P = 10Price floor =7P =2 +Demand:Supply:P =10 -Price floor =2 Q2 Q7P =2 +Demand:Supply:0.5 Q Price ceiling =2 + 0.5 Q3P =6 -3P =Demand:Supply:P = 18 -2 QPrice floor = 10P =3 + 0.5 QDemand:Supply:0.5 Q Price ceiling2 QP = 14 -= 7P =4 +Demand:Supply:P = 24 -Price floor = 123 Q1 QP =4 +Demand:Supply:7P =30 -0.5 Q Price ceiling= 14P =2 +3 QDemand:Supply:8P =28 -2 QPrice floor = 24P =3 +3 QDemand:Supply:9.P = 30 -3 Q2 QPrice floor = 21P =5 +4 Q1 Q10Demand:P = 24 -Price floor = 12Supply:P =4 +Demand:Supply:11P =603 Q Price ceiling = 11P =4 +4 QDemand:Supply:4 Q2 + 0.5 Q12P =20Price floor =8P =Demand:Supply:4 Q Price ceiling =4 Q13P = 10 -P =2 +

Question 13 Demand equation: P=10-4Q .... (1) Supply equation: P=2+4Q .... (2) Price…

Answered: Demand: Supply: P = 10 P = 2 + 4 Q…

Business

Economics

Demand: Supply: P = 10 P = 2 + 4 Q Price ceiling 4 Q 13 4

Principles of Macroeconomics (MindTap Course List)

8th Edition

ISBN:9781305971509

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter6: Supply, Demand, And Government Policies

Section: Chapter Questions

Problem 10PA

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Question

Please refer to the image below and answer question 13

In each of the following markets find the market equilibrium. Calculate consumer
surplus, producer surplus and total surplus. Then consider the effect of a price floor
(or ceiling) imposed by the government. Find the quantity demanded Qd, quantity
supplied Qs and the corresponding surplus (or deficit) in the market. Find the effect
of the policy on consumer, producer and total surplus.
Demand:
Supply:
1 Q
1 Q
1
P = 10
Price floor =
7
P =
2 +
Demand:
Supply:
P =
10 -
Price floor =
2 Q
2 Q
7
P =
2 +
Demand:
Supply:
0.5 Q Price ceiling =
2 + 0.5 Q
3
P =
6 -
3
P =
Demand:
Supply:
P = 18 -
2 Q
Price floor = 10
P =
3 + 0.5 Q
Demand:
Supply:
0.5 Q Price ceiling
2 Q
P = 14 -
= 7
P =
4 +
Demand:
Supply:
P = 24 -
Price floor = 12
3 Q
1 Q
P =
4 +
Demand:
Supply:
7
P =
30 -
0.5 Q Price ceiling
= 14
P =
2 +
3 Q
Demand:
Supply:
8
P =
28 -
2 Q
Price floor = 24
P =
3 +
3 Q
Demand:
Supply:
9.
P = 30 -
3 Q
2 Q
Price floor = 21
P =
5 +
4 Q
1 Q
10
Demand:
P = 24 -
Price floor = 12
Supply:
P =
4 +
Demand:
Supply:
11
P =
60
3 Q Price ceiling = 11
P =
4 +
4 Q
Demand:
Supply:
4 Q
2 + 0.5 Q
12
P =
20
Price floor =
8
P =
Demand:
Supply:
4 Q Price ceiling =
4 Q
13
P = 10 -
P =
2 +

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