Suppose the demand for Apples is given by QA = 240 - 8 PA and the current market price is 25. Calculate consumer surplus. 100 Correct response: 100 If the market price increases to 29 calculate consumer surplus. 4 Correct response: 4 What is the compensating variation assocated with a loss of access to the apple market at the initial price of 25? Assume demand remains consta What is the compensating variation associated with the increase in price from 25 to 29? Assume demand remains constant.

Suppose the demand for Apples is given by QA = 240 - 8 PA and the current market price is 25. Calculate consumer surplus. 100 Correct response: 100 If the market price increases to 29 calculate consumer surplus. 4 Correct response: 4 What is the compensating variation assocated with a loss of access to the apple market at the initial price of 25? Assume demand remains consta What is the compensating variation associated with the increase in price from 25 to 29? Assume demand remains constant.

Principles of Macroeconomics (MindTap Course List)

7th Edition

ISBN:9781285165912

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter7: Consumers, Producers, And The Efficiency Of Markets

Section: Chapter Questions

Problem 7PA

See similar textbooks

Similar questions

indicate whether you think the statement is true or false andexplain why. 15. The discounted rate is usually positive.16. When constant marginal cost > 0, marginal net benefit (P-MC) increases at the rate ofinterest.17. Hotelling’s rule states that the dynamically efficient allocation occurs when the presentvalue of the marginal net benefit for the last unit produced is equal across time periods.18. Monopolist over-converse resources from a dynamic efficiency perspective.19. When the growth rate in demand exceeds the discount rate, the efficient outcome in acompetitive industry will result in a larger amount of oil available for the future period thanthe current period.20. Biofuels are a back-stop technology for oil and would cause more present production ofoil
Two functions are given for supply and demandP=2QS^2+QS+7P=-QD^2-3QD+45 Can give us a fair competitionYou can use GeoGebra to solve this problem graphically, but as always you must describe each step and each idea a) Calculate consumer's surplus b) Calculate producer's surplus Draw good diagrams of the solutions to both a and b,
During the night, the electricity sector has a marginal cost of $1/MWh (megawatt-hour) forthe first 100 MWh produced (from wind turbines), and $20/MWh for each additional unit (from gasgenerators). During the day, they have a marginal cost of $1/MWh (megawatt-hour) for the first 50MWh produced (from solar panels), and $20/MWh for each additional unit (from gas generators).Nighttime and daytime demand are given by QnightD = 50 −P and QdayD = 200 −P , respectively.What are the market quantity and price during the day, and the market quantity and price at night?This is a model of the wholesale market for electricity, which you can think of as being competitive,but there is no resale between night and day.
The market demand for productXis given by: \[ Q_{d}=6-1 / 2 P \text { or } P d=12-2 Q \] The market supply for goodXis given by: \[ Q_{s}=-14+2 P \text { or } P s=7+1 / 2 Q \] whereP=price per unit andQis number of units. Draw a supply-and-demand graph with these curves. 1.) Using the line drawing tool, draw the supply and demand curves. Properly label your lines. 2.) Using the point drawing tool, plot the equilibrium point. Label your point 'E'. Note: Carefully follow the instructions above and only draw the required objects. The equilibrium price is$and the equilibrium quantity is unit(s). (Enter your responses as integers.) A per-unit excise tax is imposed on suppliers of productX, and the market supply with the tax is now given by: \[ Q_{s}=-19+2 P \text { or } P s=9.50+1 / 2 Q \] Using the graph on the right, show this supply curve. 1.) Using the line drawing tool, draw the new supply curve. Label your line 'S1+tax'.1. Note: Carefully follow the instructions above and only draw…
Green et al. (2005) estmate the supply and demand curves for Californa processod tomatoes. The supply function is: \[ \ln \left(Q_{s}\right)=0.200+0.550 \ln (p) \] whereQis the quantify of processing tomatoes in milions of tons per year andpis the price in dollars per ton. The demand function is: \[ \ln \left(Q_{d}\right)=2600-0.200 \ln (p)+0.150 \ln \left(p_{1}\right) . \] wherep1is the price of tornato paste (which is what processing tomatoes are used to produce) in dollars per ton. Supposept=$119Determine how the equilerium price and quantity of processing tomatees change if the price of tomato pasise tails by16%. If the price of tomato paste fals by18%, then the equaborium price will by 5 (Enter a numene response using a real number rounded to two decimal places)
Assume that Demand is given as Qd = 40-0.5P, if P= 0, 2, 4, 6i. Draw the demand scheduleii. What is the maximum quantity consumers being likely to buy?iii. Sketch the above equation.iv. If the market determined price is 10, determine the size of consumer surplus
[MUST SHOW WORK] Consider the above table for the market for oranges. A deep frost destroys many or the orange juice businesses to go put of business. As a result, quantity supplied decreases hper kg and the new equilibrium quantiy is.........? kg of oranges The new equilibrium price is .............? kg of oranges Select one: O A. 1.70;400 O B. 1.10; 700 O C. 1.20;650 O D. 0.90;400 O E. 1.50;500
a. Estimate the equlibrium price and quantity of the market whose demand and supply functionsare pd = −(q + 4)2 + 100 and ps = (q + 2)2respectively. b. If the region A (shaded grey) in the diagram above represents a solution set, derivethe system of inequalities which define that region.
Plz solve in 1/2 hour it's urgent The market for bananas has the following demand and supply functions Qd= 8 – 3P + Y Qs = 4 + P + 0.5W Where Q is quantity, P is price, Y is income and W is an index of weather. Assume that production is negatively affected by a cyclone. Generate a new supply function accounting for the cyclone shock and assess the effects of poor seasonal conditions on the market outcomes P, Q and revenue.
Consider a Sraffa system that describes production with a surplus. Assume that the whole of thewage is variable. The number of commodities in the system is n. Some are non-basiccommodities.a. Write the price equations in matrix notation. (Make sure to mention the dimensions of thevectors and matrix in your equation). b. Explain the economic meaning of the A matrix and l vector. c. Identify the unknown and known variables of your system. d. How can you make the system determinate, i.e., make the number of equations equal tothe number of unknowns? e. State the economic meaning of the viability condition and express it mathematically. f. Assume that the viability condition is satisfied and the rate of profit is given exogenouslyat a level that is lower than the maximum rate of profit. Explain, with the help of therelevant theorem, why the solution for prices must be nonnegative. NOTE: You need to use only three equations, one for specifying the numeraire, thesecond for expressing the…
use diagramsa. What is the effect on the equilibrium price and quantity traded in market of theintroduction of a new technology that reduces costs of production for all firms?b. What is the effect on the equilibrium price and quantity traded in a market of a changein tastes that reduces the demand for the product?c. What is the effect on the equilibrium price and quantity traded in a market of theimposition of a tax per unit sold on suppliers?d. What is the effect on the equilibrium price and quantity traded in a market of thepayment of a subsidy per unit sold paid to suppliers?
Qd= 65 – 10P Qs= -35 + 15P How do you interpret market equilibrium: (i) if P= Rs.6? (ii) if P=2? Show on the Demand-Supply diagram in (a), the graphical interpretation of your answer of (b).