Given the supply and demand fucntion Supply- Q= 200p-500 Demand- 5000-300p Suppose that this government has a Quota of 600 units in this market however. In this case: What is the Consumer Surplus and Producer Surplus with this quota in place? How much Deadweight Loss does this Quota produce?
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Given the
Supply- Q= 200p-500
Demand- 5000-300p
Suppose that this government has a Quota of 600 units in this market however. In this case:
What is the
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- Market demand for Mandrake roots is given by Q=417-5P and market supply is given by Q=2P. Thegovernment of Sodden needs money, so it imposes a per unit tax of $4 on mandrake root. What isthe market quantity when the tax is imposed?Consider a market for toys with the following demand and supply Qd = 200-6p and Qs = 2p. Now suppose that the government introduces a price ceiling of £10 for each toy. Who benefits from the price ceiling (consumers or producers)? Is there a deadweight loss?Suppose demand for good X is given by QD = 900- p/2 where p is the price and QD the quantity demanded. Supply is given by QS = p/4.Suppose 60 TL tax is imposed on each unit of X that is purchased.What is the burden of the tax? Explain the key factors that determine the incidence of the tax.
- The market for cookies is represented by the following supply and demand conditions: QD =1,000 – 200P and QS = 400P – 200, where P is the £ price per box of cookies and Q measures boxes per day. Suppose the government places a quota on cookies of 500 boxes per day. Solve for the equilibrium price and quantity and then use supply and demand curves to illustrate your answer. Calculate consumer surplus before and after the quota. Calculate producer surplus before and after the quota. Calculate the deadweight loss (excess burden) from the quota.Suppose demand and supply are given by? = 500-2P and ? =-100+3Pa) Which function is the demand function and why?b) Compute the equilibrium price and quantity in this market?c) Compute the consumer surplus and producer surplus.d) Suppose a GHC 1 exercise tax is imposed on the good. Determine the new equilibrium price and quantity.e) Compute the tax revenue to the government. f) Compute the deadweight loss resulting from the tax.Consider a competitive market where the market demand and the market sup- ply are given, respectively, by QD=500−2P and QS=2P (a) Find the competitive equilibrium price and quantity. (b) Suppose the government wants to help the producers by imposing a price floor of pf = 150. Assuming that the producers correctly anticipate the demand at price p f , find the consumer surplus, producer surplus, and the deadweight loss. (c) Suppose, instead of using a price floor, the government decides to help the producers by imposing a per unit tax t in the market and then giving all the tax collected to the producers. What is the value of t that will make the producers equally well off as in part (b)? What is the resulting deadweight loss?
- Suppose the equations below represent the market supply and demand for cellular service. QD = 50 – 0.25P QS = 2P – 76 a. Graph the supply and demand curves, and label the equilibrium quantity and price. b. Calculate the amount of Consumer Surplus and Producer Surplus in this market. c. Suppose the government enacts a per-unit tax of $9 for each unit sold. Illustrate the effect of this tax in your graph of the market for cellular service, and calculate the new market price and quantity sold. d. Calculate the amount of deadweight loss associated with this per-unit tax. e. Calculate the share of the tax burden that the sellers bear. f. Briefly explain why there is a relationship between the slopes of the supply and demand curves, and the tax burden on each side of the market.Suppose that the market for e-cigarettes can be represented by the following equations: Demand: P = 60 - 2QDSupply: P = 21 + 4QSwhere P is the price per device, and Q represents quantity of e-cigarettes, represented inmillions of devices consumed d) Calculate the new producer surplus and consumer surplus?e) How much revenue does the government raise from the tax?f) How does the sum of consumer surplus, producer surplus, and revenue after the tax(your answers to part d) and part e)) compare to the sum of producer and consumersurplus found before the tax? What does the differencebetween the two represent?Please only answer Questions D, E and F: 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. d) Calculate (1) the consumer surplus, (ii) the producer surplus, (iii) deadweight loss, (e) Which of the two options would the producers prefer? Option 1, Option 2, or None ? (f) Which of the two options would be preferred by society? Option 1, Option 2 or None?
- Consider a market where supply and demand are given by QS =P-20 and QD =130-2P, respectively. Suppose the government imposes a price ceiling of £44. Calculate the deadweight loss as a result of this price ceiling.Market demand for Mandrake roots is given by Q=425-2P and marketsupply is given by Q=5P. The government of Sodden needs money, so it imposes a per unit tax of $5 on mandrake root. How much tax revenue do they raise with this tax?Suppose the market for grass seed (p is the price of grass seed) can be expressed as Demand: QD = 100 - 2p Supply: QS = 3p Find the market equilibrium price and quantity for grass seed. If government imposes a $5 specific tax to be collected from sellers, what is the price consumers will pay? How much tax revenue is collected? What fraction of the tax is paid by consumers? What fraction of the tax is paid by producers?
