Q) The number of “Biden in 2020” campaign buttons demanded on a certain university campus is given by the function D(p) = 100 – p, where p is the price of buttons in cents. The supply function is S(p) = p. The university administration manages to enforce a price ceiling of 40 cents per button. The change in the consumers’ surplus is Select one: a. a decrease in $1.00. b. an increase of $3.50. c. an increase of $5.50. d. a decrease in $5.50. e. a decrease of $3.50.

Q) The number of “Biden in 2020” campaign buttons demanded on a certain university campus is given by the function D(p) = 100 – p, where p is the price of buttons in cents. The supply function is S(p) = p. The university administration manages to enforce a price ceiling of 40 cents per button. The change in the consumers’ surplus is Select one: a. a decrease in $1.00. b. an increase of $3.50. c. an increase of $5.50. d. a decrease in $5.50. e. a decrease of $3.50.

MACROECONOMICS FOR TODAY

10th Edition

ISBN:9781337613057

Author:Tucker

Publisher:Tucker

Chapter4: Markets In Action

Section: Chapter Questions

Problem 15SQ

See similar textbooks

Similar questions

In the graph above, if the maximum price is set at P1, what area(s) represent consumer surplus after implementing this policy? Question 13 options: a) Area A b) Areas A+B c) Areas A+C d) Areas A+B+C e) Areas A+B+C+D Quantity
The standard measure of consumer surplus is a fair measure of the value of a good to consumers because it gives an equal weight to each individual consumer.” Is this statement true, false, or uncertain?
The market for a particular consumer good has a demand function given by: q = 24 - p and supply given by p = q + q^2, where q is the quantity and p is the price. Question: If the government decided not to set the price, but instead imposed a tax on production of $1 per unit, effectively increasing the cost to supply by $1 dollar per unit for every level of quantity supplied, what would the new equilibrium quantity be?
Supply and Demand Q1 Assume that the demand curve D(p) given below is the market demand for apples: Q=D(p)=280−20pQ=D(p)=280-20p, p > 0 Let the market supply of apples be given by: Q=S(p)=48+9pQ=S(p)=48+9p, p > 0 where p is the price (in dollars) and Q is the quantity. The functions D(p) and S(p) give the number of bushels demanded and supplied. What is the consumer surplus at the equilibrium price and quantity? Round the equilibrium price to the nearest cent, use that rounded price to compute the equilibrium quantity, and round the equilibrium quantity DOWN to its integer part.Maintain full precision for the vertical intercept by carrying the full fraction into your consumer surplus calculation.Please round your consumer surplus answer to the nearest integer.
The demand function is Q=10-0.67P. The supply function is Q=0.33P. a) Graph these functions (remember you need to find inverse demand and inverse supply to graph ). b)What is equilibrium price and quantity? c)If you impose a price floor of $12, what is the surplus/shortage? Show work. d)If you impose a price ceiling of $3, what is the surplus/shortage? Show work.
If we know that the demand function of a product is Qd-100-P, where P is the price perproduct units, and Q is the number of products. a. Calculate the consumer surplus, if the market price is IDR 50 per unit!b. If the market price rises from IDR 50 to IDR 75 per unit, calculate the new consumer surplus.C. Draw items a and b in one diagram.
Some have argued that higher cigarette prices do not deter smoking. While there are many arguments both for and against this view, some find the following argument to be the most persuasive of all: “The laws of supply and demand indicate that higher prices are ineffective in reducing smoking. In particular, higher cigarette prices will reduce the demand for cigarettes. This reduction in demand will push the equilibrium price back down to its original level. Since the equilibrium price will remain unchanged, smokers will consume the same number of cigarettes.”Do you agree or disagree with this view? Disagree - the reduction in demand will push the equilibrium price below its original level. Disagree - this confuses a change in demand with a change in quantity demanded. Agree - the price increase will ultimately leave cigarette consumption unchanged. Disagree - higher cigarette prices will actually increase the demand for cigarettes.
Some have argued that higher cigarette prices do not deter smoking. While there are many arguments both for and against this view, some find the following argument to be the most persuasive of all: “The laws of supply and demand indicate that higher prices are ineffective in reducing smoking. In particular, higher cigarette prices will reduce the demand for cigarettes. This reduction in demand will push the equilibrium price back down to its original level. Since the equilibrium price will remain unchanged, smokers will consume the same number of cigarettes.” Do you agree or disagree with this view?
Assuming an increase in Demant and decrease in Supply, which of the following statements is TRUE? The price of the good will decrease. The quantity of the good will definitely decrease. The price of this good will definitely increase. There will be a permanent shortage of this good. The new equilibrium quantity may increase, decrease, or stay the same. A surplus of this good will result from these changes in Supply and Demand. What new equiLibrium quantity will result depends on the relative magnitude of the changes and the shapes of the Demand and Supply curves. We cannot determine what will happen to price.
A study of a country's colleges and universities resulted in the demand equation q = 20,000 − 2p, where q is the enrollment at a public college or university and p is the average annual tuition (plus fees) it charges.† Officials at Enormous State University have developed a policy whereby the number of students it will accept per year at a tuition level of p dollars is given by q = 5,200 + 0.5p. Find the equilibrium tuition price p and the consumers' and producers' surpluses at this tuition level. What is the total social gain at the equilibrium price? HINT [See Example 3.] equilibrium tuition price p = $ consumers' surplus CS = $ producers' surplus PS = $ total social gain $
A study of a country's colleges and universities resulted in the demand equation q = 20,000 − 2p, where q is the enrollment at a public college or university and p is the average annual tuition (plus fees) it charges.† Officials at Enormous State University have developed a policy whereby the number of students it will accept per year at a tuition level of p dollars is given by q = 10,000 + 0.5p. Find the equilibrium tuition price p and the consumers' and producers' surpluses at this tuition level. What is the total social gain at the equilibrium price? equilibrium tuition price p = $ consumers' surplus CS = $ producers' surplus PS = $ total social gain $
suppose that demand in the market for good x is given by the equation Q^d=30 minus P and that supply in the market for good X is given by the equation Q^s=2P. If the government set a price ceiling at $12, would there be a shortage or surplus, and how large would be the shortage/surplus?