Suppose that market supply and demand for Cola are linear and continuous. At competitive equilibrium, the price of Cola is $9.09, with 10 people each buying half a litre in quantity. The government subsidises the consumption of Cola by $2.7 per litre, and in doing so, leads the market to a new equilibrium price of $7.74 and quantity of 17 litres.What is the deadweight loss of this policy?O a. $9.09O b. $8.50O c. $32.40O d. $16.20 Type out the correct answer and give correct explanation of it within 40 50 minutes. Will give upvote only for the correct answer. Thank you
Q: Calculate the Marginal Product (MP) at each input level. If the price of printer is $100 each,…
A: Marginal product of labor is the ratio of change in total product and change in labor input. MPn =…
Q: Calculate the value of P corresponding to the following series, if the effective interest rate…
A: Year Cash Flow 0 0 1 90 2 80 3 70 4 60 5 50 6 40 7 50 8 60 9 70 10 80 11 90
Q: What factors determine whether a particular economic issue can be adequately analyzed by using a…
A: A difficulty with the economy's ability to produce products and services to meet the economy's…
Q: The table below contains some revenue and cost data for the Rising Moon T-shirt Company (quantities…
A: Disclaimer- “Since you have asked multiple questions, we will solve the first three questions for…
Q: Write the growth rate of output per capital Y/P in terms of growth rate of output per worker Y/N.
A: Solow Growth is a model developed by the economist Robert Solow to showcase the growth in an…
Q: Jabari's HookNLadder is the only company selling fire engines in the fictional country of…
A: Given, HookNLadder's fire engines is the monopoly of fire engines. Initially, HookNLadder's fire…
Q: If the following explanation (or expression) is correct, please indicate "True (T)". Or, if the…
A: When the countries or individuals or entities of one country trade with other countries, then it is…
Q: QUESTION 1 describes X? A product X is an inferior good with no close substitutes. It is a…
A: Elasticity is a concept that's utilised to predict how demand or supply will fluctuate as a result…
Q: Question 2 True/False/It-depends For this question I want you to explain why you answered True,…
A: Inflation refers to the rise in the overall prices of all the goods and services produced within the…
Q: Question 3 - Please consider the data listed in this table. Sales Fixed Cost Variable Cost 3,00,000…
A: In order to breakeven the profits are zero. It is the point at which the total revenue is equal to…
Q: Suppose the imaginary company of Roobek is a small, Jackson-based American apparel manufacturer…
A: Fixed cost is the cost that will incur even in the zero level of production. Total cost is the sum…
Q: In this market, the equilibrium price is Price (Dollars per box) 35 For each of the prices listed in…
A: Equilibrium is where Demand curve intersects supply curve. When the quantity demanded is greater…
Q: Contrast a money-back guarantee and a warranty.
A: The producers offer money back guarantee and warranty so that the good looks promising to the…
Q: The profit maximizing condition for a firm selling its output in a competitive market and buying its…
A: Marginal Revenue Product (MRP) is the product of marginal product of labor and the price of good…
Q: Consider a company operating in a competitive market. The company sells units of output and receives…
A: A competitive market is one in which no single customer or producer has sway over the market. Its…
Q: Provide the two benefits to the U.S. government of granting income tax credits.
A: A direct tax deducted from a person's earnings. It is a tax charged by the Government of India on…
Q: A monopolist faces two demand curves in two separate markets. The Market Demand in the first market…
A: Monopoly refers to the Market where one single seller sells the product at a higher price. whereas a…
Q: Karen transfers $500 from her saving account to her checking account. This transaction will Group of…
A: The entire amount of currency in use within an economy at any particular time is referred to as the…
Q: 1. What are the major characteristics of a monopoly along with the different barriers to enter.…
A: Since you have provided multiple questions, we will solve the first question for you. If you want…
Q: AARON Capital Investments Corporation was offered a business proposal. The details of the proposal…
A: Cash inflows are the cash flows that shows the benefit or income to the investor. Cash outflows are…
Q: When the Fed raises the required reserve ratio, the banks' excess reserves ________ and the money…
A: Required reserve ratios are the one which the bank should kept it with themselves rather than…
Q: A pump is needed for 10 years at a remote location. The pump can be driven by an electric motor if a…
A: Requirement of pump in years at remote location=10 years ways of driven pump are:Electric motor or…
Q: . Outline three benefits derived by Caribbean countries as a result of the agriculture sector.
A: Agricultural economics is the study of the allocation, distribution, and usage of agricultural…
Q: The "Freshman 15" refers to the belief that college students gain 15 lb (or 6.8 kg) during their…
A: Null hypothesis: H0: μd = 0. Alternative hypothesis: H1: μd >0. Paired t-test statistic: In…
Q: Question2 Imagine that you own a company that is a price taker with the production function: q=f(L,…
A: A Cobb-Douglas technology function is a type of production function. It is used to evaluate the…
Q: The New England Soap Company is considering adding some processing equipment to the plant to aid in…
A: Given information There are 4 projects: A,B,C and D For project A Initial investment: $8500 Annual…
Q: Consider the binary variable version of the fixed effects model with an additional regressor, D1;…
A: Take into account the fixed effects model with a binary variable, but with an additional regression…
Q: The monopolistically competitive firm sells OA. a homogeneous; a downward-sloping B. a…
A: In monopoly , There exists a single seller. But in monopolistic competition , There exists large…
Q: manufacturer moves pallets of materials with a forklift truck. He has consistently used the same…
A: In the provided question, the operating expenses and salvage value is different in every year. Thus,…
Q: Q23 Revolving L/C can be used repeatedly until its expiry date between the same seller and buyer.…
A: Revolving letter of credit can be defined as a special letter of credit type that is not covered…
Q: 0.5, Utility function is given as Cobb Douglas functional form: U = x1.5x2.5 Price the first good:…
A: Utility function : x10.5 x20.5 Price of good 1 : p1 = 5 Price of good 2 : p2 =10 Income = 500 Above…
Q: In a principal-agent problem, if the contract implies that the more risk-averse agent will bear less…
A: In a principal-agent problem, risk-averse refers to that investor that prioritizes the capital…
Q: Refer to Table 10.1. First Commercial Bank's required reserves equal $________. First Commercial…
A: Reserves are the part of deposit that is kept by the bank with the regulation of Central bank.…
Q: (b) Suppose that m = 24, p₁ = 2 and p2 = 4. Find the optimal bundle for the consumer. In other…
A: Given Utility function: ux1,x2=x1+x2 .....(1) p1 and p2 denotes the price of good 1 and…
Q: In a market with a Duopoly, if Market Demand is P=300-Q find the Cournot reaction curves and the…
A: When two firms jointly control all or almost all of the usual market for a certain good or service,…
Q: What quantity of output will this profit-maximizing firm choose to sell? 18 unit(s) (Round your…
A: Note: You have uploaded two questions at a time. Hence, we shall answer only the first one for you.…
Q: only typed answer Consider the following information: Q = 22 L + 57 K PL=52, PK=3, P=28 and C=4763…
A: The objective of a firm is to maximization of profits This implies selling an optimized quantity of…
Q: What is the difference in labor relations when it comes to the public and private sector?
A: The sector which is owned, controlled, and managed by the government of a country is known as the…
Q: Skyline Furniture has a beginning inventory of 3 dining tables at a cost of $1,400 each. During the…
A: First In, First Out (abbreviated as FIFO) refers to an asset-management and valuation approach…
Q: Please written by computer source Suppose that the demand curve for a product is given by Q = 100…
A: Consumer Surplus: Consumer surplus is the net benefits that the consumer receives by purchasing…
Q: 15.) Royalties received by an investor in an oil well vary according to the price of oil. Data…
A: The expected value of an event is obtained by multiplying the probability of an event by the value…
Q: For each price in the following table, calculate the firm's optimal quantity of units to produce,…
A: Total Revenue (TR) is determined by increasing the given price function with the quantity as…
Q: Consider the following information: Q = 16 L + 42 K PL=26, PK=10, P=41 and C=5020 What is the profit…
A: The decrease in units of one input for an additional units of other input is measured by…
Q: Using efficiency as a criterion biases the analysis in favor of the status quo, since any change is…
A: In microeconomics, economic efficiency is the condition that demonstrates optimal resource…
Q: The balance sheet of Nationa Bank is shown below (assume a legal reserve ratio of 10%): Assets…
A: To find the amount of money that a bank can create we need to find the money multiplier which is a…
Q: Company ABC is considering investing in a project whose initial cost is $186000. It saves $42000 in…
A: Present value is the value of investment in today's dollar. Future value is the value of investment…
Q: Sizzler's produces charcoal grills in a small manufacturing facility and sells the grills in a…
A: Production Function shows the relationship between quantities of output produced and quantities of…
Q: Question 1 Consider the demand function. q= D(x) = 400e-0.2z a) Find the elasticity. E(x)= b) Find…
A: The Ed(elasticity) of demand shows the responsiveness of change in Q(quantity demand) to change in…
Q: ). Choose a wrong statement about the policies designed to reduce the catch. O Transfer costs…
A: Introduction An economic policy is a course of action that is intended to influence or control the…
Q: What is one explanation for why this labor supply curve is upward sloping? O The opportunity cost of…
A: Equilibrium in labor market depends on the demand and supply of labor. The shape of the labor supply…
Suppose that market
b. $8.50O
c. $32.40O
d. $16.20
Type out the correct answer and give correct explanation of it within 40 50 minutes. Will give upvote only for the correct answer. Thank you
Step by step
Solved in 2 steps with 1 images
- hello, can explain to me how to solve the question step by step? TQ Suppose the cable TV industry is currently unregulated. However, due to complaints from consumers that the price of cable TV is too high, the legislature is considering placing a price ceiling on cable TV below the current equilibrium price. Assuming the government does make this price ceiling law, please construct a diagram that shows the impact of this law on the cable TV market, and please briefly explain the effects on market prices and quantities with supply and demand analysis. Also, if the cable TV company is worried about disgruntling customers, the company may introduce a different type of programming that is cheaper for the company to provide yet is equally appealing to customers. What would be the effects of this action? 1.Harding Enterprises has developed a new product called the Gillooly Shillelagh. The market demand for this product is given as follows: Q=240 - 4P a. At what…The demand and supply functions for basic cable TV in the local market are given as: QD = 200,000 – 4,000P QS =20,000 + 2,000P. If the government implements a price ceiling of $15 on the price of basic cable service, what will be the quantity of cable service that will prevail in the market? Is there a surplus or a shortage, and if so, how much? With the new government policy, is there a deadweight loss in the market? If so, why is there a deadweight loss and how much is the deadweight loss? Are consumers better off or worse off with this policy? Are producers better off or worse off? Is society on the whole better off or worse off?The table below shows the demand schedule for museum admissions in a small city. Price (per visit per person) $12 $ 11 $ 10 $ 9 $ 8 Quantity Demanded (thousands of person-visits per year) 9 10 11 12 Between the prices of $8 and S9, the elasticity of demand is O A. 0.9 О B. 0.74 O C. 1.11 O D. 0. O E. 1.35
- indicate whether you think the statement is true or false andexplain why. 9. Natural gas and coal are two fuels used for electricity generation and their cross-price elasticity is positive.10. A tax on gasoline will have a smaller deadweight loss if the demand for gas is inelasticthan if it is elastic.11. If the solar panel industry is competitive, the marginal firm makes zero profits in the longrun.12. The supply of goods depends on the vertical aggregation of individual demands.13. Applying dynamic efficiency to non-depletable renewable energy is not necessary becauseits quantity will not in the future.14. Given a competitive oil market and zero extraction cost, dynamic efficiency entails that thecurrent oil price equals the present discounted value of the future price.In recent years, the government of Pakistan has established a support price for wheat of about $0.20 per kilogram of wheat. At this price, consumers are willing to purchase 10 billion kilograms of wheat per year, while Pakistani farmers are willing to grow and harvest 18 billion kilograms of wheat per year. The government purchases and stores all surplus wheat. Suppose that the market-clearing price of Pakistani wheat in the absence of price supports is equal to $0.10 per kilogram. At this price, the quantity of wheat demanded is 12 billion kilograms. Under the government wheat price-support program, how much more is spent each year on wheat harvested in Pakistan than otherwise would have been spent in an unregulated market for Pakistani wheat?Suppose that the annual demand and supply curves for some good in a competitive market are QD = 26 – 2P and QS = −2 + 2P a: Solve for the equilibrium quantity and price.b: Neatly graph this market, showing the horizontal and vertical intercepts of the demand curve,the vertical intercept of the supply curve, and the equilibrium. Make sure to put quantity on the horizontalaxis.
- The annual demand for imported oranges is given by the following equation:?? = 600,000 − 30,000?where ? is the price per kilogram and ?? is quantity of kilograms demanded per year.The supply of imported oranges is given by the equation:?? = 20,000? a. Suppose that a $1-per-gallon tax is levied on the price of oranges received by sellers. Use both graphic and algebraic techniques to show the impact of the tax on market equilibriumFor Frisbees, the supply curve is the typical upward-sloping straight line, and the demand curve is the typical downward-sloping straight line. A tax of $20 per unit is imposed on blue Frisbees. The tax reduces the equilibrium quantity in the market by 300 units. The deadweight loss from the tax is. O. $3,000 O. $6,000 O. $1,000 O. $2,000Suppose the supply of a good by domestic firms is QSD = 10 + 2P and the supply by foreign firms is QSF = 10 + P. The domestic demand for the product is given by Qd = 30 − P. 1. In the absence of a quota, what is the total supply of the good? 2. What are the equilibrium price and quantity of the good? 3. Suppose a quota of 10 units is imposed. What is the total supply of the product? 4. Determine the equilibrium price in the domestic market under the quota of 10 units.
- 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?16. Given that the U.S. government mandates the use of ethanol as a partial substitute for gasoline (10% by volume), and that ethanol manufactured in the U.S. is made from corn; how will the supply of ethanol, the demand for ethanol, as well as its equilibrium price and quantity, be affected by the following event: The government drops the mandatory requirement of minimum ethanol fuel content for cars. Will have multiple answers j) Equilibrium Price and Quantity will remain unchanged. e) Supply will decrease. h) Equilibrium Price will increase. i) Equilibrium Price will decrease. d) Supply will increase. a) To the extent the amount of ethanol additive in gasoline is determined by government fiat, neither demand for not supply of ethanol will be affected unless the government changes its requirements. c) Demand will decrease. g) Equilibrium Quantity will decrease. b) Demand will increase.….12) In the effort to reduce alcohol consumption, the government is considering a $1 tax on each gallon of liquor sold. The legal incidence of the tax will be on producers. Suppose the demand for alcohol is described by Q D = 500,000 – 20,000*P where Q D is quantity and P is price per gallon (NOTE: the inverse demand curve would be P = 25 – 0.00005*Q D ). The supply curve is described at Q S = 30,000*P (NOTE: This would make the MC curve MC = (1/30,000)*Q S ). a. Draw the supply and demand curves before the tax is imposed. Calculate the equilibrium price and quantity. b. Add the tax to the supply curve. Calculate the new price per gallon consumers pay, the price per gallon producers receive, and the new equilibrium quantity. c. Calculate the amount of revenue the tax generates. How much of the tax is paid by consumers? How much of the tax is paid by producers? d. Calculate the elasticity of demand at the original equilibrium price. Calculate the elasticity of supply at the original…