Find the deadweight loss when the price in the competitive market is d = (2/5)*56 and demand is given by the inverse demand function P = 56-31 Q. Round your answer to the nearest hundredth. d h Private Cost Social Benefit Private Benefit a = 56, b-(4/5)*56, c = (3/5)*56, d = (2/5)*56, e-(1/5)*56
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- In a competitive market in which P = 100 − 2Q is the inverse demand for fuel and P = 10 + Q is the inverse supply of fuel. Calculations are preferred, but you may use a graph for partial Without a tax, what is the market-clearing price and output, P and Q? What is the consumer surplus and producer surplus (with no tax) If a tax on fuel is set at $15, how much fuel will be purchased? You can assume that the buyers pay the tax (but it doesn’t matter). What is the deadweight loss of the tax? Thanks!Suppose the market for solar panels has the following demand and supply functions:QD =10-4P QS =2P Suppose additionally that the government gives a $1 subsidy to buyers per unit purchased. Compute the change in welfare for consumers, producers, and the dead weight loss. Who benefits most from the subsidy? Why?The demand and supply functions for stylus pens are given by P = 100 - Q and P = 20 + 5Q, respectively.Now the government imposed a $10 per unit tax on stylus pens collected from sellers. What are themarket equilibrium price and quantity of stylus pens before imposing the tax? What are the marketequilibrium price and quantity of stylus pens after imposing the tax? What is the tax burden imposed onbuyers and sellers, respectively?
- Wood is used extensively for chairs and is produced in the market. There are equations for the Supply and Inverse Demand of wood for chairs that model its Supply and Demand graph. These equations are (for supply), P = 2Qs, and (for Inverse Demand), P = 10 - 2Qd. Likewise, wood has become very expensive, so the government places a price ceiling of $1. (Part I) Draw the market equilibrium with the government intervention (Q**, P**) of the price ceiling. Please label the graph for slopes, equilibrium points, price ceiling, etc. (Part II) What is the market equilibrium with the intervention of the government (Q**, P**)? (Part III) Based on what you have calculated so far and the given information, is there excess demand or excess supply in the equilibrium? If there is, indicate specifically the type of excess and determine the value of this excess. (Part IV) Are consumers benefiting from this price ceiling in this given scenario? Please compare the market equilibrium without any…Algebraically, solve for the after tax equilibrium price and quantity in the corn market, if the government collects a specific tax of t=$2.40 from customers. The before-tax linear demand function for U.S. corn is given as Q=15.6-0.5p and the original supply curve is given as Q=9.6+0.25p. Please show with a diagram.Using the information below, solve for the SMC, the efficient level of output and the Pigouvian tax the government would need to impose to correct for this market failure. (may not solve for whole numbers) PMC 105+10Q PMB 150-5Q MD 2Q
- The demand curve for product X is given by QXd = 420 − 4PX.a. Find the inverse demand curve. Instruction: Enter all values as integers, or if needed, as a decimal. PX = − QXdInstructions: Enter your responses to the nearest penny (two decimal places).b. How much consumer surplus do consumers receive when Px = $50?$ c. How much consumer surplus do consumers receive when Px = $25?$ d. In general, what happens to the level of consumer surplus as the price of a good falls?The level of consumer surplus as the price of a good falls.The equations below represent the demand and supply curves for annual gym memberships in a certain city. qD= 500 − 2p, qs= 0.5p − 50 Assume that the city government offers a per-unit subsidy of $25 to those who sign up for an annual gym membership. a. Find the equilibrium pre and post subsidy. What share of the subsidy benefit accrues to the buyers? b. Do a welfare analysis comparing consumer surplus, producer surplus, and total surplus pre and post subsidy. Is there a deadweight loss associated with the implementation of this subsidy? Graph ypur answerOn the Virus island the inverse demand function for masks is given by the formula P=360-Q, where P - price, Q - quantity. The inverse supply function of masks takes the form P=Q. The government of this island decides to support the production of masks by introducing a subsidy per unit equal to 40. What will be the producers’ surplus under these new conditions? a. 15 000 b. 18 000 c. 24 400 d. 20 000 D 20,000 is the correct answer please show the steps
- Suppose the demand function for cigarettes is given by Qd=80-20p and the supply is by Qs=10p-10. Suppose the government introduce a specific tax of t=1 to be levied from the produces. 1. Obtain the new supply Curve 2. Determine the new equilibrium quantity and price 3.compute the government revenue 4. Compute the incidence (burden) on the consumer 5. Compute the incidence (burden)on producers 6. Compute the dead weigh loss 7. Draw a diagram with all your analysisThe market for jelly has a supply and demand given by the following: QD=200–10p QS=20p–100 (a) What is the consumer surplus and producer surplus? (b) Suppose to aid families, the government instates a price ceiling of 9. What is the resulting CS and PS. What is the deadweight loss? (c) Unhappy with the resulting shortages of jelly, the government removes the price ceiling and replaces it with a subsidy to consumers. What subsidy would be required to lower the price consumers pay to 9? (d) What is the resulting CS, PS from the subsidy? (e) How much does the subsidy cost the government? What is the DWL?Consider a nonrenewable resource that can be consumed either today (period 1) or tomorrow (period 2) and has a finite supply of 4 units. Assume the inverse demand for the resource in both periods is: P_1 = 30 - 5Q_1 P_2 = 30 - 5Q_2 Assume the marginal cost of extracting the resource is constant at $10 and the social discount rate is 20 percent (r = .2). Assuming the resource is allocated efficiently, what is the consumer surplus in period 1? Please report your answer out to at least two digits (e.g., 3.24).