Q1. Suppose perfect competition prevails in the market for hotel rooms. The current market equilibrium price of a standard room is RM300 per night. C. Show the loss in net benefits from hotel use resulting from the tax
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Q1. Suppose
C. Show the loss in net benefits from hotel use resulting from the tax.
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- 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 + 50PAssume perfect competition takes place in the market for hotel rooms. The current market equilibrium price for a standard room is RM300 per night. c. Show the loss in net benefits from hotel use resulting from the tax.The wheat market is perfectly competitive, and the market supply and demand curves are given by the following equations: QD = 20,000 - 4,000P QS = 7,000 + 2,500 P where QD and QS are quantity demanded and quantity supplied measured in bushels, and P = price per bushel. a. Determine the equilibrium price and quantity. b. Determine the Consumer surplus c. Assume that the government has imposed a price floor at $2.25 per bushel and agrees to buy any resulting excess supply. How many bushels of wheat will the government be forced to buy? Determine consumer surplus with the price floor.
- Suppose demand and supply are given by Qd = 60 - P and Qs = P - 10. Suppose that new consumers enter the market (higher preference for the good), increasing the demand by 20 units at each price. At the same time, suppliers are using a new technology that increased production by 12 units at each price. Calculate producer surplus:The inverse demand for a product is P(Q) =30-2Q. Hence, marginal revenue is MR(Q) =30-4Q. The total cost of production is C(Q) =20+Q2 , which implies that the marginal cost is MC(Q) =2Q. Now imagine that there is a price ceiling set at P =14. The deadweight loss in the market is now ________.Suppose the demand for football tickets at a local college is QD=70,000−500P and the supply of tickets is QS=30,000. The market equilibrium price is $8080 and the equilibrium quantity is 30000 tickets. (Enter your responses as whole numbers.) Total economic surplus in this market is ______. (Enter your response as a whole number.)
- Suppose the following demand and supply function: Qd = 750 – 25P Qs = -300 + 20 P Find consumer and producer surplusThe market for used economics textbooks is perfectly competitive, with a market supply curve given by P = 6 + 2Q and market demand curve given by P = 42 – Q, leading to an equilibrium of P = 30 and Q = 12. If the government provides a subsidy of $12 per textbook, what will be the new market quantity? Determine the new CS and PS, the cost of the subsidy, and the amount of deadweight loss created by the policy.We are given the market information of pizza as below: a)Define the market demand equation and supply equation. b)Estimate the consumers’ surplus, producers' surplus, and total market surplus
- 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 millionAssume that a firm is willing to sell its product for at least 100 TL and the going price for that product is 150 TL in the market. Then what is the producer surplus of this firm for each product sold? A. 100 TL B. 0 TL C. 150 TL D. 250 TL E. 50 TLconsider the inverse demand and supply for apples to be given by P=30-3Qd and P=6+Qs. the total surplus in this competitive market is ______. where______ is due to the producers. a) $50, 50% b) $54, 80% c) $18, 75% d) $72, 25%