Suppose your economist tells you the "free-market" demand for X is given by: P=30 - 3X; and the "free-market" supply of X is given by P-10 + 2X. Ceteris paribus, the equilibrium quantity exchanged in this market is and the equilibrium price is Select one: a. 20; 50 b. 8; 6 C. 8; 26 d. 4; 18
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- Suppose demand and supply are given by Qxd = 14 − 1/2 Px and Qxs = 1/4 Px −1 a. Determine the equilibrium price and quantity. Show the equilibrium graphically. b. Suppose a $12 excise tax is imposed on the good. Determine the new equilibrium price and quantity.(20). Due to good weather, there is an increase in the demand for the good. The new demand equation is Qd=190-2p. The government is trting to decide between two options: Maintain the number the number of quotas and let the market adjust , or maintain the price support and increase the number of quotas. suppose that the government decides to maintain the number of quotas and let the amrket adjust. calculate price observe in the market consumer surplus producer surplus deadweight (21). suppose now that the government decides to increase the number of quota available to 72 units but it keeps the price support at the current level at $72. calculate the consumer surplus the producer surplus the deadweightDue to good weather, there is an increase in the demand for the good. The new demand equation is Qd = 190 – 2P. The government is trying to decide between two options: Maintain the number of quotas and let the market adjust, orMaintain the price support and increase the number of quotas. Suppose now that the government decides to increase the number of quotas available to 72 units, but it keeps the price support at the current level of $72. Calculate: i) the consumer Surplusii) the producer surplusiii) deadweight loss HINT: Sketch the supply and demand equations. Which of the two options would be preferred by the producers? Which of the two options would be preferred by society as a whole?
- 1. Suppose an increase in consumers' income causes a decrease in the demand for chicken and an increase in the demand for potatoes. Which good is inferior and which is normal? How will the equilibrium price and quantity change for each good?2. If the demand and supply curve for dishwashers are:D = 200 – 8P, S = 32 + 6PWhere P is the price of dishwashers, what is the quantity of dishwashers bought and sold at equilibrium?3. Markets tend toward equilibrium and, as a result, will tend to eliminate shortages and surpluses. Why?4. What is the difference between a shift of the demand curve and movement along the demand curve? Make sure to explain what determinants can cause a shift and movement along the demand curve.5. Explain the impact of:a. A rent ceiling set below the equilibrium price.b. A price floor set above the equilibrium price.The demand for a good is given by QD = 99−3P and the supply by QS = 2P + 4. The market for this good is in equilibrium. Now, the government introduces a tax of $5 per unit to be paid by the producers. How large is the consumer surplus, producer surplus, and total welfare generated by this market after the introduction of the tax? Show your calculations. Sketch the market diagram and label all relevant prices and quantities.Suppose the demand for Car is given by Qd = 1000-0.5P and that the supply of Car is given by Qs=2P-300 .a. Solve for the equilibrium price. Plug the equilibrium price back into the demand equation and solve for the equilibrium quantity.b. Draw a diagram, depicting supply and demand.c. Suggest a method how you can check your result from A and implement it. Is your result that you gave in A) correct?d. Calculate the Consumer Surplus for the given setting.
- Due to good weather, there is an increase in the demand for the good. The new demand equation is Qd = 190 – 2P. The government is trying to decide between two options: Maintain the number of quotas and let the market adjust, orMaintain the price support and increase the number of quotas. Suppose that the government decides to maintain the number of quotas and let the market adjust. Calculate:ii) the consumer surplusiii) the producer surplusiv) dead weight loss HINT: Sketch the supply and demand equations.Due to good weather, there is an increase in the demand for the good. The new demand equation is Qd = 190 – 2P. The government is trying to decide between two options: Maintain the number of quotas and let the market adjust, orMaintain the price support and increase the number of quotas. Suppose that the government decides to maintain the number of quotas and let the market adjust. Calculate:ii) the consumer surplusiii) the producer surplusiv) dead weight loss HINT: Sketch the supply and demand equations. Which of the two options would be preferred by the producers? Which of the two options would be preferred by society as a whole?(Q.3.3.) Suppose the demand and supply equations for a particular good are given as follow: QD - 140 - 2P and Qs - 4P - 10. The market for this good is currently in equilibrium. (Q.3.10) At the current market price, is the market outcome efficient? If not, state the relationship between the current market price and the efficient market price, and the current quantity traded and the efficient quantity traded. At the current market price, the market outcome_______________The current market price__________________the efficlent price, and the current quantity traded___________the efficient quantity. (Please explain the response. Do not simply provide an answer. Thank you. Option choices are: is efficient, is equal to, is greater than, is inefficient, or is less than than.)
- given that Qs = 100+3P and Qd = 400 - 2P Now suppose that a tax is placed on buyers so that Qd = 400 – (2P + T) where T istaxes. If T = 15, solve for the new equilibrium price and quantity. (Note: You aresolving for the equilibrium price for sellers and buyers).Demand for cookies is of the following form: P=20-4QD, where QD is millions of cookies demanded per year and P is price in US dollars. Supply of cookies of the following form: P=6+Qs, where QS is millions of cookies supplied per year and P is price in US dollars. a. What is the equilibrium quantity of cookies traded? Solve the equation, showing your work. b. Graph the supply and demand curves, marking their intersection. Be sure to label intercepts, equilibrium, etc. c. The government imposes a tax of $2 per cookie on producers of cookies. What is the new equilibrium quantity of cookies traded? Solve the equation, showing your work. d. In a graph, show how the supply curve has shifted. What price do consumers now pay? After paying the tax, how much to producers receive.Solve for Equilibrium Price and Equilibrium Quantity given: P = 107.5-0.25Qd Qs = 3.45P + 295.55
