Suppose the market demand curve is described by the equation P = 30 - 2Q. If all units of output are sold at a single market price of 20, the total value of consumer surplus at that price is: А 12 В 20 C 28 D I do not want to answer this question. E 32 F 10
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- The demand for good X is estimated to be Qxd = 10, 000 − 4Px + 5Py+ 2M + Ax, where Px is the price of X, Pyis the price of good Y, M is income, and Ax is the amount of advertising on X. Suppose the present price of good X is $50, Py = $100, M = $25,000, and Ax = 1,000 units. Based on this information, we know that the demand for good X is: Select one: A. inelastic. B. elastic. C. unitary elastic. D. neither elastic, inelastic, nor unitary elastic.Luchansky and Monks (2009) estimate that the U.S. demand curve for ethanol is Qequals=p Superscript negative 0.504 Baseline p Subscript g Superscript 1.269 Baseline v Superscript 2.226p−0.504p1.269gv2.226, where Q is the quantity of ethanol, p is the price of ethanol, p Subscript gpg is the price of gasoline, and v is the number of registered vehicles. What is the elasticity of demand for ethanol? Part 2 The elasticity of demand is the percentage change in quantity divided by the percentage change in price:Assume that product X is quantified in the following manner:QDX= -2PX + 0,5PY - 0,2PZ + 1,2I. In which:QDX is a quality of product XPX is the price of product XPY is the price of product YPZ is the price of product ZI is the entry of the center of the userMake an argument to determine whether the demand curve for product X will change and how it will change for each of the following cases:i. Consumer income increasesii. The price of product X decreasesiii. The price of product Y increasesiv. The price of product Z decreases
- The weekly demand for sobolo among the 2017 cohort of BSc Admin students at the UGBS is Qdx =50-4PX +0.5I +10Py -2PzWhere Qdx is the quantity demanded for soboloPX is the price of sobolo per 1bottleI is the income of consumers in Ghana cedisPy and Pz are the prices of two goods that are related to soboloa. Based on the demand function above, is sobolo a normal good or inferior good? Explain your answer.b. Based on the demand function above , what is the relationship between sobolo and good Yc. Based on the demand function above , what is the relationship between sobolo and good Zd. What is the equation of the demand for sobolo if consumer incomes areGHS30, the price of good Y is GHS 10 and the price of good Z is GHS 20?e. Graph the demand function for sobolo from d)Consider the market for crude oil. Suppose the demand curve isQd = 100 – P, the supply curve is QS= P/3. Because the price ofoil is deemed too high, the government gives producers asubsidy of 4 dollars per barrel to help buyers. Explain whether the subsidy lowers the price consumers paid by 4 dollars perbarrel?The demand curve for product X is given by Qxd = 300 − 2Px. a. Find the inverse demand curve. b. How much consumer surplus do consumers receive when Px = $45? c. How much consumer surplus do consumers receive when Px= $30? d. In general, what happens to the level of consumer surplus as the price of a good falls?
- Assume that the demand function is equal to: QD = 5000 - 1000P Where the price range is P1.00 to P5.00, derive the demand schedule economicssuppose there is a market demand for coffee that express with the function Qd=252-4p and at the same time the supply of coffee is perfectly inelastic Qs=172, therefore farmers cannot change the supply quanitiy in the shortrun. so make a graph and calculate 1)consumer surplus, 2)the own-price elasticity of demand at $40/unit, and 3)the reservation price of consumers where demand elasticity equal 0.189.Suppose that the market demand and supply curves for doughnuts (good X) are given by QD = 50 – 40P + 0.03I + 10PY and QS = -150 + 60P – 10W, where P is price of X, I is the average consumer income, PY is the price of cinnamon pretzels (good Y), and W is the wage for workers producing good X. What is the Income elasticity of demand at the market equilibrium? Are doughnuts a normal good or inferior good? Suppose that I = $5,000 and PY = $5. What is the demand curve for good X? Suppose that W = $10 (per hour). What is the supply curve for good X? DO NUMBER 1 !!!!!
- Consider a regional with a uniform distribution of population where every household consumes the same amount of a good. The regional government recently stated its policy for the location of factories making the good: “A factory should reach the minimum point of its average production cost curve at an output of 1000 units. Since the total demand for the good is 4000 units, we should have 4 factories in the region. Since the distribution of the population is uniform, the factories should be distributed uniformly throughout the region” Comment on this policy as to in particular whether there should be more or fewer factories for efficiency?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.Suppose an individual consumer's demand curve of Good X is given by Qx(Px)=2/Px. This consumer's price elasticity of demand for Good X when Px=1 is equal to O-2 -0.2 O -0.5 O-1 O -0.1