Suppose the market for My Bud Beer is described as follows. Qd = 300 - 4 P Qs = 6P Your job is to cause problems and institute a PRICE CEILING that will create a deadweight loss in this country. Which price ceiling would you implement? O $40 $20 O $30
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- Assume the demand equation for a product is given by P=50-Q, while the supply curve is given by P=20+Q.a. Compute the consumers and producers surpluses at the laissez- faire market equilibrium price and quantity. b. Assume government sets a price ceiling of K30, what is the change in consumers and producers surpluses? c. What is the deadweight loss in welfare?Consider a market equilibrium is a price = $2 and quantity = 100 units in the market for hand sanitizer. Based on this information, answer the next three questions. What could the price in this market be if the government implemented an effective price ceiling? Will there be any excess supply or demand? Provide at least one more example of how consumers or producers will respond to the price control (think unintended consequences).Suppose the demand for live comedy performance tickets is downward sloping and the supply of live comedy performance tickets is upward sloping. Lovers of comedy persuade Congress to impose a price ceiling of $40 per ticket for live comedy performances. True or False: If the equilibrium price of live comedy performance tickets were $40, a price ceiling of $40 will cause more people to attend comedy performances than if there is no price control.
- Suppose demand and supply for services of surgeons in Australia each day are given below, where demand and supply are expressed in terms of number of services per day, and P = price per service Qd=2000−2P Qs=3P What area(s) comprise the producer surplus after the implementation of the production quota? (select all relevant areas) a) D b) F c) B d) E e) C f) AAssume a price ceiling of $40 has been implemented and there are no wasteful lines and search costs. What are the total gains from trade (total surplus) with a price ceiling of $40? Hint: enter your answer as a number only with no $ sign Example: if the answer is $10,000, enter 10,000In a market with a price ceiling, the price is: Group of answer choices No answer text provided. actually the equilibrium price because the price ceiling has no effect on the market. set lower than the equilibrium price and represents the government mandated maximum price. set higher than the equilibrium price and represents the government mandated maximum price.
- Suppose the government sets a Price Ceiling at $5. If the market equilibrium price is $3, the Price Ceiling will be: Select one: a. binding. b. effective. c. illegal. d. non-binding.where QD denotes the quantity demanded and p the price. The gold curve for apples is given by QO (p) = 3/2 p, where QO denotes the quantity o§ert. SC denotes the consumer surplus at market equilibrium in the absence of government intervention. Suppose the government imposes a ceiling price p = 30 on apples. We denote by SC the consumer surplus at market equilibrium with price ceiling. Calculate SC - SC *.The Australian Government believes that maintaining a viable airline industry is essential to the long term sustainability of the country’s tourism - so in order to support them in a post covid travel environment they are proposing to subsidise the purchase of tickets. The demand for tickets is given by Qd = 5000 − 10P and the supply is Qs = 2000 + 10P. (a) Solve for the equilibrium price and quantity in this market, and calculate producer and consumer surplus. (b) Suppose the government offers a $100 per ticket as a subsidy, recalculate the equilibrium price and quantity to reflect the subsidy. What will be the price paid by ticket buyers be and the price received by sellers? (c) How much will the subsidy program cost the government and what will be its net effect on the total surplus?