In the market for therbligs, the supply curve is Ps=$10+$0.05Qs and whose market demand curve is Pd=$20-$0.10Qd .Find the quantity and price in equilibrium and record them using fractions rather than a rounded decimal.Calculate the elasticity of demand on the interval between the market equilibrium point and the point at which P=$15.Plot the diagram on graph paper and add in a price floor at $15. Show the resulting Cunsumer Surplus, Producer Surplus, and DeadWeight Loss.A quick way to calculate price elasticity at a point on a straight demand or supply curve is to remember the forula of elasticity.At the equilibrium price and quantity, calculate the elasticities of demand and supply. (Your answer for demand will be smaller than in #2.)If an excise tax is imposed on therbligs, what fraction of that tax will be borne by therblig sellers?

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Answered: In the market for therbligs, the supply…

Microeconomics: Private and Public Choice (MindTap Course List)

16th Edition

ISBN:9781305506893

Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson

Publisher:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson

Chapter7: Consumer Choice And Elasticity

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In the market for therbligs, the supply curve is Ps=$10+$0.05Qs and whose market demand curve is Pd=$20-$0.10Qd .

Find the quantity and price in equilibrium and record them using fractions rather than a rounded decimal.
Calculate the elasticity of demand on the interval between the market equilibrium point and the point at which P=$15.
Plot the diagram on graph paper and add in a price floor at $15. Show the resulting Cunsumer Surplus, Producer Surplus, and DeadWeight Loss.
A quick way to calculate price elasticity at a point on a straight demand or supply curve is to remember the forula of elasticity.
At the equilibrium price and quantity, calculate the elasticities of demand and supply. (Your answer for demand will be smaller than in #2.)
If an excise tax is imposed on therbligs, what fraction of that tax will be borne by therblig sellers?

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