In a competitive market, the market-clearing price is $5.30 and the market-clearing quantity is 20. At P = $5.3, consumer surplus of this market is 47. Assume the market %3D demand function is linear. The vertical intercept of the demand curve is equal to A. (Assume P is put on the vertical axis and Q is put on the horizontal axis.)
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- The inverse supply function for coal is PS = 2 + QS. The inverse demand function for coal is PD = 20 - 2QD. By how much does consumer surplus increase when a $3 subsidy to consumption is introduced? (Assume that no tax was in place before the subsidy is introduced).The market demand function for ice cream is Qd = 10 - 2P and the market supply function for ice cream is Qs = 4P - 2, where both quantities are measured in millions of gallons per year. What is the aggregate surplus at the competitive market equilibrium? Question 17 options: $4.5 million $9 million $13.5 million $27 millionWhich statement is true? Group of answer choices A competitive market maximises total surplus as all the gains from trade are realized. In a competitive market all trade for which the MB is greater than or equal to the MC of production take place. If output was increased beyond the traded in a competitive market total surplus would decrease. The competitive equilibrium outcome is Pareto efficient. All of the above. Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.
- The demand and supply equations listed below describe the market for high-quality, one-hour impressions of Elvis Presley. Graph this market, and determine the market clearing price (P), the market clearing quantity, and total economic surplus when the market clearing price is charged. QD = 5000 – 100P QS = -1000 + 50PThe market for soda beverages demand is QD = 90-20P and supply is QS = 30P-10. Price is measured in dollars per one-gallon bottle and quantity in millions of one-gallon bottles a) Find the equilibrium quantity and price in the market for soda and compute Consumer Surplus and Producer Surplus when the market is in equilibrium. As that problem noted, sweetened beverages contribute to the over consumption of high-fructose corn syrup with negative consequences for public health. Suppose that each extra one-gallon bottle of soda sold in the market imposes a $1 external cost on state and federal governments that see Medicare and Medicaid diabetes-related expenditure increase. b) What is the total external cost that the soda beverages industry imposes on the government? Suppose that a $1 per bottle tax is imposed on sellers of soda beverages. What is the new equilibrium price and equilibrium quantity in the market for soda beverages? c) How much consumer surplus and how much producer surplus…If a firm is the leader (assume the firm has 100% market share) in supplying a product to the market at $3 per unit where the consumer is willing to pay $4.35 per unit, what is the profit (surplus) to the firm (assuming no additional cost to the firm) if the consumer purchases 23 units.
- Producers' Surplus The demand function for a certain brand of CD is given by p = −0.01x2 − 0.2x + 7 where p is the unit price in dollars and x is the quantity demanded each week, measured in units of a thousand. The supply function is given by p = 0.01x2 + 0.1x + 2 where p is the unit price in dollars and x stands for the quantity that will be made available in the market by the supplier, measured in units of a thousand. Determine the producers' surplus if the market price is set at the equilibrium price. (Round your answer to the nearest dollar.) $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!The demand and supply functions a firm producing a certain product are given respectively by: and , where p is the price per unit and quantities are in millions per year. How much consumer surplus (CS1) do consumers receive when price is P1 = $60?
- suppose there is a market demand for coffee that express with the function Qd=252-4p and at the same time the supply of coffee is perfectly inelastic Qs=172, therefore farmers cannot change the supply quanitiy in the shortrun. so make a graph and calculate 1)consumer surplus, 2)the own-price elasticity of demand at $40/unit, and 3)the reservation price of consumers where demand elasticity equal 0.189.the supply curve for product x is given by QxS= -340 + 10Px a. find the inverse supply curve P= + Q b. how much surplus do producers recieve when Qx= 350. when Qx= 1000The Demand function for a product is pd(q) = 80(0:1q + 0:2)2, where q is in millions of tons and pd(q) is in dollars per ton. Market equilibrium occurs at the demand for 18 million tons. Compute consumer's surplus.