Suppose the market for a certain good is perfectly competitive and the demand is given by P=10 market is currently in equilibrium. What are the producer surplus and consumer surplus, respectively? and the supply is given by P=Q. The O $1250 and $1250 O $2500 and $2500 O $2500 and $1250 O $1250 and $2500
Q: TRUE OR FALSE Selecting the best alternative always depends on the economy under study, rather than ...
A: Total Cost is the overall expenditure incurred in the production of all the goods and services.
Q: By which principle can the size of a pay-off matrix be reduced? Game Inversion Game Transpose Domina...
A: Sometimes we work in the opposite direction in game theory which means given the agents equilibrium ...
Q: I 1)find i* that satisfies this equation 0 = - 40,000 + 8000(P/A,i*,5) + 8000(P/F,i*,8)
A: Formula used: (P/A, i, 5) = (1+i)n -1i(1+i)n (P/F, i, 8) = (1+i)-n
Q: To combat corruption, among Transparency International's key recommendations are: -Make greater use...
A: Answer -
Q: discuss double taxation that is good for 2 minutes.
A:
Q: If an increase in price from $1 to $2 causes a decrease in quantity demanded from 120 to 100, calcul...
A: Elasticity is used to calculate the relative change in the quantity demanded of the good as compared...
Q: • Assuming that there is no government spending or trade, an economy's GDP is the sum of domestic co...
A: Aggregate Demand includes consumption expenditure and investment as there is no government . In equi...
Q: High AFC High ATC High MC High ATC MC ATC Minimum of ATC Diminishing marginal product sets in AFC 9M...
A: The total fixed cost (TFC) per unit of production is referred to as average fixed cost (AFC). AFC = ...
Q: The PH debt as of today amounts 12 trillions. This balloons with an interest rate of 0.16% yearly. S...
A: Let us firstly calculate debt on every working individual . 12 trillion = 12 million millions ( 1 ...
Q: Assume aggregate consumer spending equals $1,500 when aggregate disposable income is zero, and when ...
A: The aggregate consumption function is given below C=c0+c1YD C = 1500, when Yd = 0 if Yd increase to ...
Q: Consider an OLG economy where each generation has 20 bananas when young, and 12 bananas when old. Su...
A: One of the dominant frameworks of analysis in the study of macroeconomic dynamics and economic growt...
Q: In the foreign exchange market, an increase in the U.S. interest rate leads to in the exchange rate ...
A: In the foreign exchange market , an increase in U.S. interest rate leads to rise in exchange rate be...
Q: Enumerate some comparisons and contrasts of the concept of demand and concept of supply.
A: Demand is the customer's desire for a specific product at a given price, which he or she is willing ...
Q: 9. If 4 million people are unemployed in a county, and the size of the labor force is 25 million peo...
A: According to the question: Number of unemployed people= 4 million Size of labor force= 25 million Un...
Q: ng country service sector workers who would be glad to come to vely higher wages. This effectively m...
A: A intermediate good is an item used to deliver a ginal goods or completed item additionally alluded ...
Q: Developing countries like China and India start promoting investment. Use the Mundell-Fleming model ...
A: The great degree of integration or connectivity among financial or capital markets is one of the mos...
Q: 1) The local breakfast restaurant has a new offer: those who buy more than 10 sandwiches a month get...
A: Answer -
Q: how does the production theory and concepts affect revenue
A: Production is the process of transformation of inputs into output with use of services of factors o...
Q: True or False 1. Selecting the best alternative always depends on the economy under study, rather th...
A: "Since you have asked multiple questions, we will solve first question for you .. If you want any sp...
Q: Suppose a consumer lives in two periods, with his income in period 1 as $100 and his income in perio...
A: Utility maximizing consumption bundle is when MUC1 / MUC2 = 1 + rWhere MUC1 = Marginal utility from...
Q: The table below shows labour force information for a hypothetical economy, Selkirk. Answer the follo...
A: Q1. Solution(a) Blank 1- 2.90 million Blank 2- 4.40 million. Blank 3- 65.90% Blank 4- 5.17% Blank 5-...
Q: e equilibrium exchange rate is 0.70 euros per dollar. At this exchange rate, the quantity demanded e...
A: According to the question, The equilibrium rate is 0.70 euros to the dollar. The quantity required e...
Q: GAME 5 Player B B1 B2 Player A A1 7, 3 5, 10 A2 3, 8 9, 6 In Game 5 above, O there are no Nash equil...
A: Let us find the combination of different strategies that players can choose: If player A choose A1, ...
Q: How is education level impact the lives of consumers?
A: Consumers are the people who make purchases. For a business organization, it is very important to un...
Q: for the below Cash flow, find the total Present value using 10% interest rate. years $ cost 2,330 1 ...
A: Present worth" it is the amount of money today is worth more than that same amount in the future. fo...
Q: 7. The demand curve for labor shows what? a. The demand for labor is immune to wage pressures. b. ...
A: "Correct option is b."
Q: Explain neoclassical theory of distribution.
A:
Q: A competitive industry consists of 100 identical firms. The short run cost function of each firm is ...
A: Competitive industry A competitive industry refers to a type of industry in which there is a large n...
Q: A Managment instutute can operate for a maxium 12 hours .lectures are the outout of the institute an...
A: A function asserts the relationship between one input and one output, or many inputs to yield a sing...
Q: Suppose the demand functions facing the wireless telephone monopolist In Worked-Out Problem 18.4 (pa...
A: Demand functions are QDL=40-50P for each low demand consumer and QDH=200-50P for each high demand co...
Q: If sellers bear more of the burden of taxation then O supply is more elastic than demand O elasticit...
A: Tax incidence refers to the distribution of tax burden between buyers and sellers. The burden of the...
Q: 10 9. 8. 4. 3. 1. 10 20 30 40 50 60 70 80 90 100 Baseball caps (thousands per month) Suppose that th...
A: Trade is defined as the exchange of commodities and services across the boundary of the country. Pro...
Q: a. Draw a Lorenz curve for an economy comprising of unemployed (with zero income), workers and emplo...
A: Lorenz curve is a graphical representation of wealth distribution in a society. It represents how un...
Q: If a good that generates negative externalities is priced to internalize the externality, then its p...
A: Money has been critically evaluated and has been evolved since the ages and currently money is used ...
Q: The demand for labor is L= 4000 - 300w, where L is the number of workers demanded and w is the hourl...
A: Labor Demand : Ld=4000-300w Labor Supply : Ls=200w Equilibrium wage=$8 Equilibrium quantity of labor...
Q: i = 8% 0 – 1-2- 3- 4-5-6 $5500 $7100 F $9500
A: Given information: Interest rate = 8% Required to find = F
Q: . For goods, increase in income leads to increase in demand.
A: To find : What leads to increase in demand.
Q: Consider a country with balanced trade. Using the table below, determine the quantity of financial c...
A: GDP in an open economy is the sum of consumption, investment, government purchases net export. Since...
Q: suppose that the first $5000 income earned is not taxed at all, the next $10000 earned is taxed at t...
A: Marginal tax is calculated by multiplying the tax rate with the income. In the given case, Tax on in...
Q: 200 + 10q + 0.5g", where q is the number of units they produce. What is the shut-down price for this...
A: (1) SRTC = 200 + 10q + 0.5q2 variable cost (VC) is that part of SRTC which depends on quantity (q) =...
Q: 7. Libby: "The unemployment rate went up between May and June of 1991." Michael: "The number of peop...
A: Unemployment includes those people who are looking for jobs but are unable to secure them. Unemploym...
Q: Discuss the goals of regulatory frameworks with regards to reasons governments manage regulate-es an...
A: There are many reasons behind the regulatory framework of government, government intervention is nee...
Q: Some people try to make money by watching exchange rates and trying to get the best deal on their tr...
A: The rate that depicts the rate at which one currency is being exchanged for another currency is know...
Q: Candy is a Year 4 full-time undergraduate student majoring in marketing at a private university in H...
A: Answers - 1 Opportunity Cost : The benefits that a person, an investor, or a corporation may miss o...
Q: The government decides to pass a law that requires all automobiles to have side and rear airbags. Th...
A: The demand for automobiles is highly inelastic as compared to the supply of automobiles. An increase...
Q: Consider the following closed economy: C = 30 + 0.87 x YD. 1= 2400 G = 2000 TR = 30 T = 0,40 x Y If ...
A: An economy is closed when there are no trading activities with the outside economies. The formula fo...
Q: On the foreign exchange market, an increase in a country's exchange rate O a. decreases the demand f...
A: When any foreign currency appreciates in the home country the demand for it will decrease and there ...
Q: In some markets plumbers have a choice of joining unions or working as nonunion plumbers. The total ...
A: WNU=30-0.04LNU∴0.04LNU=30-WNU∴LNU=750-25WNUWU=30-0.1LU∴0.1LU=30-WULU=300-10WU
Q: 4 Show that the swap rate for a standard swap with level notional amount is the same as the at-par y...
A: Calculation is shown Below....
Q: Explain the concept of the rules of origin in regional and international trade
A: Rules of origin are the rules expected to decide the public source of an item. Their significance is...
Trending now
This is a popular solution!
Step by step
Solved in 2 steps with 1 images
- Suppose the demand for pickles on The Citadel is Qd=500-4P, and the supply is Qs=6P. Assume this market is perfectly competitive. How much consumer surplus is created in this market? How much producer surplus?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.)Assume competitive markets (prices are given) and that the demand is more elastic than supply. Which of the following statements is correct? A. We do not have sufficient information to infer which surplus is greater B. Consumer surplus will be larger than producer surplustyping C. Consumer surplus will be exactly the same as producer surplus D. Consumer surplus will be smaller than producer surplus. Give typing answer with explanation and conclusion
- In a given town, demand for fish and supply of fish is given by P = 3,955 - 6 * Q and P = 1,012 + 24 * Q respectively. Here P and Q denote are fish price and fish quantity (in tons). What percentage of the total surplus goes to producers if the fish market is competitive?Consider a market with a perfectly elastic demand curve at p∗ = 1, 763 and a perfectly inelastic supply curve at q∗ = 452. What is the Consumer Surplus? What is the Producer Surplus?Suppose that the demand for broccoli is given by: Q=1000-5P where Q is quantity per year measured in hundreds of bushels and P is the price in dollars per hundred bushels. The long-run supply curve for broccoli is given by: Q=4P-80 Show that the equilibrium quantity here is Q= 400. At this output, what is the equilibrium price? How much in total is spent on broccoli? What is consumer surplus at this equilibrium? What is producer surplus at this equilibrium? How much in total consumer and producer surplus would be lost if Q= 300 instead of Q= 400? Show how the allocation between suppliers and demanders of the loss of total consumer and producer surplus described in part (b) depends on the price at which broccoli is sold. How would the loss be shared if P= 140? How about if P= 95? What would be the total loss of consumer and producer surplus if Q= 450 rather than Q= 400? Show that the size of this total loss also is independent of the price at which the broccoli is sold. Now suppose the…
- The market for N-95 masks is perfectly competitive. Market Demand is given by Q=389-2P and Market Supply is given by Q=2P. The government imposes a quota of 133 units. What is the maximum total surplus in the market with this quota?In a perfectly competitive market for cheese with downward sloping demand and upward sloping supply, the equilibrium price is $12 per kilo. If the government imposes a price ceiling of $10, we can conclude that the government policy will: Select one: a. reduce the number of units sold only if demand is elastic b. decrease producer surplus and decrease total surplus c. reduce the number of units sold only if demand is inelastic d. decrease producer surplus but increase total surplus e. increase producer surplus but decrease total surplusSuppose a demand function is given by p = 15 + 6000(q+25)-1 and the supply function is given by p = q+20. Find the equilibrium (correct to 1 decimal point) and hence compute either the Consumer Surplus or the Producer Surplus.
- Suppose the market for pizzas in the U.S. is perfectly competitive and is characterized by the following demand and supply equations (Q = quantity and P = Price): Demand for pizza: Qd = 100 – P Supply of pizza: Qs = 2P − 50 A) Find the market clearing equilibrium price P* and quantity Q*. B) Find the the consumer surplus and producer surplus at the equilibrium. C) Suppose that the U.S. imposes a price ceiling at $40. What is the quantity demanded by consumer (Qd’)? What is the quantity supplied by suppliers (Qs’)? D) Suppose that the U.S. imposes a price ceiling of $40. Is there a shortage or surplus for pizzas? E) Suppose that the U.S. imposes a price ceiling of $40. What is the new CS’ and PS’? Assuming that the government purchases/provides the surplus/shortage. Under the same assumption, what is the deadweight loss caused by the price floor?Question 11 In a graph, market producer surplus is equal to what area? Question 11 options: a) The area below the demand curve but above price. b) The area between the demand and supply curves. c) The area below the demand curve but above the x-axis. d) The area above the supply curve but below price e. The area below the supply curve but above the x-axis. e) The area below the supply curve but above the x-axis. Question 12 Which of the following is the definition of a deadweight loss? Question 12 options: a) A reduction in social welfare due to equity considerations. b) A reduction in social well-being due to equity considerations. c) A reduction in social welfare due to…A perfectly competitive market is characterized by the following inverse demand function and inverse supply function where Q is output and P is the price in dollars. Demand: P = 100 – QD Supply: P = 10 + QS Suppose that a price ceiling of $30 is set by the government. Calculate the consumer surplus, the producer surplus, and the deadweight loss as a result of the government price ceiling