Q: The difference between consumer surplus and producer surplus
A: Economics, as a subject, deals with the allocation of scarce resources among humans with unlimited…
Q: Consider that the market for non-scientific calculators where the demand is described by the…
A:
Q: market demand for soda is given by Qd= 4000 - 120P and market supply is given by Qs= 200P. Solve for…
A: Q = 4000 - 120P ----------> Demand equation Q = 200P ----------------> Supply equation At…
Q: Consider the price support and the quota, Calculate The consumer surplus The producer surplus The…
A: The consumer surplus The producer surplus The deadweight loss Solving all parts
Q: The subsidy is more beneficial to consumers when a. The demand curve more elastic b. The demand…
A: A subsidy is a monetary advantage provided by the government to a person, business, or institution.…
Q: When a government sets a quota on the amount of sugar that can be imported, it is implementing a…
A: Quotas are the limit on the goods and services that can be imported from the foreign country. It is…
Q: The analysis of a production subsidy to import-competing industry (or a production subsidy) implies…
A: Production subsidy is given in order to support domestic producers of a product.
Q: A higher price increases producer surplus. True False
A: Producer surplus is the amount of surplus or welfare that the suppliers of a commodity extract from…
Q: The village of Hum in Croatia has a market for shoes which buyers and sellers get together to…
A: There are various types of market structure- perfect competition, monopoly, monopolistic competition…
Q: Consumers will be affected if the government imposes a tax on apples because Group of answer choices…
A: In this question we talk about consumers hence, the answer should involve consumers loss only. We…
Q: Suppose bread is subsidized in a small Caribbean nation with a high percentage of citizens who live…
A: Subsidy to sellers reduces the cost of production. This encourages sellers to increase production.…
Q: if deadweight loss is $24,000 under a tax of $4 per unit, what is deadweight loss under a tax of $2…
A: DWL = $24,000 t = $4/unit
Q: • What area(s) represent the loss of surplus to producers? • What area(s) represent government…
A: Tariffs are taxes imposed on goods and services imported from other countries.
Q: A tariff is a Tax Price ceiling Quantity limit Subsidy
A: A tariff is a kind of tax that is imposed by a government on services and goods imported from other…
Q: subsidy
A: ‘Subsidy’ is a payment usually made in cash directly or indirectly by the govt to a firm or the…
Q: 11. (T/F) When the price of potato went up from $2 to $4, farmer Helen went from producing nothing…
A: "In economics, cost refers to the value of money that is spent in order to produce a good. "Marginal…
Q: The government of a small country is considering the introduction of a unit subsidy on the…
A: Equilibrium is achieved at a point where demand is equal to supply. Price elasticity of demand…
Q: Congress and the president decide that the United States should reduce air pollution by reducing its…
A: The decision made by congress and president of the United States to reduce air pollution by taxing…
Q: _____ means selling the products at a price less than the ongoing price in the market. a. Quota b.…
A: International trade is defined as the exchange of goods, capital, and services between different…
Q: Calculate the producer surplus if a price ceiling of $5 is implemented. Answer:
A: When price ceiling of 5$ is implemented, the producer surplus will be zero because the producer will…
Q: please plot a graph showing the effect of a government subsidy on the market for surgical masks.
A: The amount given by the government to the producer is known as a subsidy. The main aim of subsidy is…
Q: There are two countries in the (Home and Foreign). Home is exporter of cotton. The home government…
A: Government tends to create the export subsidies to earn the foreign exchanges and reduce the trade…
Q: Consider the supply and demand diagram below. If a $2 per unit subsidy is introduced, what will be…
A: Equilibrium quantity: The quantity of equilibrium is where a commodity on the market is not in…
Q: The maximum willingness to pay is $100 and market price is $85 Calculate consumer surplus
A: According to the above mentioned question, we have:- Maximum willingness to pay = $100 Market price…
Q: Quantity Demanded (units) Price (dollars per unit) 250 200 40 150 80 100 120 50 160 200 Refer to the…
A: A consumer surplus occurs when customers pay less for a commodity or service than they are willing…
Q: Given the following chart, find the cost of government subsidy, if you know that P-40 and * P*=30
A: Below is the given values: First price, P = 40 Second price, P* = 30
Q: Find the consumer surplus and producer surplus. Demand p= 100-0.00006x Supply p= 90+0.00004x
A: Consumers surplus is the difference between the maximum price a consumer is willing to pay and the…
Q: What happened to supply curve and equilibrium price and quantity when Government provides subsidy to…
A: (Q) What happened to the supply curve and equilibrium price and quantity when the Government…
Q: Consider the market for shoes. The current price of a pair of plain white socks is $100. Two…
A: Total producer surplus can be calculated as follows: Total producer surplus=Market price-Willing to…
Q: Consider the market for shoes. The current price of a pair of plain white socks is $100. Two…
A: Given the market price is $100, the consumer surplus is as follows J gains the difference between…
Q: To determine: The impact of export subsidy.
A: A subsidy is a government incentive which can be given to firms or individuals in different forms…
Q: Consider a small country with the following inverse demand and supply functions of tomatoes: P = 80…
A: Given Information Demand:- P=80-2QSupply:- P=20+2qWorld price = 80Production Subsidy = 20
Q: How can a government subsidy help with the importation of face masks? Please use agraphs to…
A: A subsidy is a payment made to firms or consumers designed to encourage an increase in output. An…
Q: Describe THREE (3) changes that could have the same effect on market supply of gasoline as the…
A: Subsidy refers to the monetary advantage or help given to companies or individuals, generally by the…
Q: If the government imposes a subsidy of $7/unit, then deadweight loss will be $80 $140 $168 None of…
A: Deadweight loss is the reduction in the total surplus of the economy due to market-distorting…
Q: producer surplus
A: The producer surplus depicts the variation between price received by producer and his willingness to…
Q: The market price for chair is $750 and the maximum willingness of the buyer to pay is $810…
A: According to the above given question, the values given are:- Market price for chair = $750 Maximum…
Q: Market Supply Market Demand Q1 Q2 Q3 Quantity per period efer to the above graph. Deadweight loss is…
A: The equilibrium price and quantity of a good sold in the market are determined by the forces of…
example of subsidy in the philippines
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- The United States government subsidizes many so-called green companies. For instance, it has given millions of dollars to solar panel companies. In the market for solar power, illustrate what the government subsidies mean._____ means selling the products at a price less than the ongoing price in the market. a. Quota b. Subsidy c. Dumping d. TariffRefer to the Internet Service market above. S1 and D show the original equilibrium. S2 shows the impact of a subsidy to internet service providers. What is the size of the total subsidy payment? Group of answer choices $80 $60 $42000 $28000
- Why is subsidy used to correct market failureRent control aims to limit landlords from imposing high rents. A rent control is an example of a: * Subsidy Price floor Price ceiling TaxPlease no written by hand solution The demand for the Tesla electric automobile is P = 200,000 – 2Q, where P is in $/car and Q is the number of cars sold per year The supply of the Tesla is P = 20,000 + 10Q, P is in $/car and Q is the number of cars produced per year. Find the equilibrium price and quantity of the car assuming there are no buyer subsidies. Also find consumer and producer surplus and total social welfare.
- Suppose the equilibrium price for soccer tickets in a free market results in 15,000 tickets being purchased. Major League Soccer has decided to impose a price control of $19 per ticket. At a price of $19, soccer teams would be willing to supply 11000 tickets. At this price, consumers are willing to purchase 25500 tickets. Which of the following is a result of the price control?There will be a __ of ___ ticketsA subsidy is a direct tax on imported goods Question 48 options: True FalseThe village of Hum in Croatia has a market for shoes which buyers and sellers get together to determine the price of shoes. The regional price for shoes is above the village price and shoes are a tradable. Using simple diagrams and proper labels show this situation, and the resulting consumer and producer surplus.
- A numerical restriction on amount of a good imported is called a Group of answer choices quota. trade tax. tariff. supply tax.A steel mill, S, produces 20 tons of water pollution for every 100 tons of steel it produces. The downstream village of Watertown (WT) spends $150 per ton of water pollution from S to eliminate its environmental harm . S is a price taker in an international market where the demand for steel is p = 100 – 3X and the market supply of steel is p = 40 + 3X. X is in units of one (1) million tons per day and p is the price in dollars per ton of steel. S has a daily increasing marginal cost of production function, MC = x. S's Total Cost function = x*x/2 where x is S’s daily output. (a) If S has no legal liability for its pollution, what is S’s daily production of steel? How does your answer here relate to the concept of private efficiency? (b) WT wants to bargain with S to reach an optimal agreement on this pollution. Assuming S is still not legally liable for its pollution and both S and WT do not use lawyers, would there be an agreement? How does yo ur answer here relate the concept of…
