Suppose the demand and supply of firearms in Jail are given as follows: Demand: P = 630 − 349Q Supply: P = 480 + 2Q in which Q is the quantity of firearms in million units and P is the price per each firearm in Jalian dollars. a. The equilibrium price is [ANS1] Jalian dollars and the equilibrium quantity is [ANS2] million units. b. Suppose the government purchases 10 million units of firearms back from the market. After the government enters the market, on the new demand curve, when the price is 555 Jalian dollars, the total quantity demanded is [ANS3] million units of firearms. c. Suppose the government wants to use such buyback program to reduce the quantity of firearms in the community to zero. The government will need to buy at least [ANS4] million units of firearms from the market and spend at least [ANS5] million dollars.
Suppose the demand and supply of firearms in Jail are given as follows:
Demand: P = 630 − 349Q
Supply: P = 480 + 2Q
in which Q is the quantity of firearms in million units and P is the price per each firearm in Jalian dollars.
a. The
b. Suppose the government purchases 10 million units of firearms back from the market. After the government enters the market, on the new demand curve, when the price is 555 Jalian dollars, the total quantity demanded is [ANS3] million units of firearms.
c. Suppose the government wants to use such buyback program to reduce the quantity of firearms in the community to zero. The government will need to buy at least [ANS4] million units of firearms from the market and spend at least [ANS5] million dollars.
d. Suppose the government wants to use
e. Suppose the government wants to use
f. Knowing that the government is determined to reduce the quantity of firearms in the community to zero through either buyback, taxation, or price floor policy, the firearms suppliers are actively thinking of lobbying the government for a policy they favor. The firearms suppliers as a group are willing to spend up to [ANS9] million dollars to lobby the government to adopt the policy they favor.
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