E4 In a competitive market, the market demand is Qd = 60 −6P and the market supply is Qs = 4P. A price ceiling of $4 will result in A. A shortage of 18 units. B. A shortage of 20 units. C. A surplus of 30 units. D. A surplus of 12 units. E. Neither a surplus nor a shortage.
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E4
In a competitive market, the market demand is Qd = 60 −6P and the market supply is Qs = 4P. A
- A. A shortage of 18 units.
- B. A shortage of 20 units.
- C. A surplus of 30 units.
- D. A surplus of 12 units.
- E. Neither a surplus nor a shortage.
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- Can you propose a policy that meld induce the market to supply more rental housing units?If the price is above line equilibrium level, would you predict a surplus or a shortage? If line price is below the equilibrium level, would you predict a surplus or a shortage? Why?Quanity demand =40-P Quanity supply =P-4 How much is total consumer surplus ar the equilibrium price in this market?
- A4 Suppose that good X is traded in a competitive market. The market clearing price is $25.00 and the quantity supplied is 200. A proposed change in government policy is expected to cause the market price to increase by $1.50. Previous studies suggest that the price elasticity of supply is about 1.5. Assuming the supply schedule is linear, calculate the change in producer surplus from the government's policy shift. Round your answer to 1 decimal place and report it in the box below. Don't include the dollar sign, but if producer surplus decreases, be sure to include a negative sign in your response. your answer isSuppose the demand and supply curves are described byMC = 1.11 + 0.89QWTP = 8.92 - 0.83QSuppose the price is 6.37.A. Given the price above, is there a shortage or a surplus? Surplus Shortage B. What is the value of the shortage or surplus? Only enter a positive number.For a market with following information: P = 80 - 0.25Q; P = 4+0.75Q 1. Derive direct demand and direct supply; 2. find demand-choke price and supply-choke price 3. find equilibrium price and quantity 4. If market price is 50, what is market outcome (surplus or shortage by how much
- The demand for lattes, Qd, is represented by the equation: Qd = 500 - 20P, where P equals the market price. The quantity supplied of lattes, Qs, is represented by the equation: Qs = 80P Suppose the price of lattes is $5, What is happening at this price? Group of answer choices A Shortage B Surplus C EquilibriumAssume that the government sets a price floor in the market for wheat and the price floor is set below themarket equilibrium of wheat. Discuss carefully THREE points showing effectiveness of this policy on the market. Please provide with 3 points1. Assume that good Z is an inferior good for a consumer. If the consumer's income increases, then A. the quantity supplied of good Z will increase. B. the quantity supplied of good Z will decrease. C. the quantity demanded of good Z will increase. D. the quantity demanded of good Z will decrease. 2. If the prevailing market price is the market equilibrium price, then A. QD = QS (quantity demanded = quantity supplied). B. no shortage will occur in the marketplace. C. no surplus will occur in the marketplace. D. price is not expected to rise nor fall. E. All of above.
- Consider the market for newspapers shown below. As this is an election year the demand for newspapers has increased by a 100 newspapers at each price. What is the new equilibrium quantity in the market? A) 250 B) 150 C) 100 D) 2001. The old demand was Qd = 180 – 2P. 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. a. Suppose that the government decides to maintain the number of quotas and let the market adjust. Calculate the following: Price observed in the market The consumer surplus The producer surplus Deadweight loss b. Suppose now that the government decides to increase the number of quotas available to 72 units, but it keeps the price support at the current level of $72. Calculate the following: The consumer surplus The producer surplus Deadweight loss12 . Problems and Applications Q10 A market is described by the following supply and demand curves: QSQS = = 3P3P QDQD = = 400−P400−P The equilibrium price is and the equilibrium quantity is . Suppose the government imposes a price ceiling of $80. This price ceiling is , and the market price will be . The quantity supplied will be , and the quantity demanded will be . Therefore, a price ceiling of $80 will result in . Suppose the government imposes a price floor of $80. This price floor is , and the market price will be . The quantity supplied will be and the quantity demanded will be . Therefore, a price floor of $80 will result in . Instead of a price control, the government levies a tax on producers of $40. As a result, the new supply curve is: QSQS = = 3(P−40)3P−40 With this tax, the market price will be , the quantity supplied will be , and the quantity demanded will be . The passage…
