Last 3. Parts are wrong please don't do like this i trust on you and you are giving me wrong answer PLz give me correct answer for last 3 parts plz • The demand for a good is QD = 160-2P with P being the price and Qpdenoting the quantity demanded. The supply for the good is Qs = -40 +2P with Qs representing the quantity supplied. The production of the goodcreates a marginal external cost P = Q.• Q6. Determine the equilibrium quantity in the absence of any regulation.• Q7. Determine the consumer surplus in the absence of any regulation.Q8. Determine the producer surplus in the absence of any regulation.• Q9. Determine the total external cost in the absence of any regulation.Q10. Determine the efficient (or social) equilibrium quantity.Q11. Determine the deadweight loss associated with the negativeexternality.●31 Given:Demand: Q=160-2PSupply: Q=-40 +2PExternal Cost: P = QPart AWithout regularization, the market equilibriumcondition is:=> Demand = Supply=> 160-2P = -40 +2P=>4P=200=> P = 50From the demand curve : Q=160-2P=160-2*50=160-100=60 (equilibrium quantity) - it iscorresponding to point A in the diagram belowPart Bwithout regulation, Consumer surplus is given bythe area ABC= (1/2)*60*(160-50) = 3300 (ans.)Part CWithout regulation, the producer surplus is givenas:= (1/2)*60 (50-20) = 900 (ans.)Price160 B5020 PSolutionPart A: 60Part B: 3300Part C: 900AX60$1D1QuantityPart DAs the equilibrium output without governmentregulation is 60 unitsAnd as the total external cost: P = Q = 60Hence total external cost in the absence of anyregulation is 60Part ETo get the efficient equilibrium quantity, we have:MSC (marginal social cost) = MB (marginalbenefits)MSC MPC + MECMPC: Marginal private cost given by the S1 curveMEC: P = Q=>MSC = (20 +0.5Q)+Q=20+1.5QMB: this is given by the demand curve,=> Hence equilibrium with regulation is:= 20 + 1.5Q = 80 - 0.5Q=>2Q=60=>Q=30 units (efficient equilibrium quantity)From the demand function:>P=80-0.5Q=80-0.5*30=65Part FIn the graph we have the MSC curve. And this lineintersects the demand curve at point B where wehave equilibrium price as 65 and equilibriumquantity as 30 units (this is derived in part E)Corresponding to Q = 30 units, MPC = 20 +0.5Q =20+0.5*30=35The dead weight loss is given by the area:= (1/2)*(60-30)*(65-35)= 450 (ans.)Price1006550 C3520 DMSC$1DIQuantity

The equilibrium price is Rs. 50 and quantity is 60 units, in absence of regulation. The consumer…

• The demand for a good is QD = 160-2P with P being the price and QD denoting the quantity demanded. The supply for the good is Qs = -40 + 2P with Qs representing the quantity supplied. The production of the good creates a marginal external cost P = Q. • Q6. Determine the equilibrium quantity in the absence of any regulation. • Q7. Determine the consumer surplus in the absence of any regulation. • Q8. Determine the producer surplus in the absence of any regulation. • Q9. Determine the total external cost in the absence of any regulation. • Q10. Determine the efficient (or social) equilibrium quantity. • Q11. Determine the deadweight loss associated with the negative externality.

• The demand for a good is QD = 160-2P with P being the price and QD denoting the quantity demanded. The supply for the good is Qs = -40 + 2P with Qs representing the quantity supplied. The production of the good creates a marginal external cost P = Q. • Q6. Determine the equilibrium quantity in the absence of any regulation. • Q7. Determine the consumer surplus in the absence of any regulation. • Q8. Determine the producer surplus in the absence of any regulation. • Q9. Determine the total external cost in the absence of any regulation. • Q10. Determine the efficient (or social) equilibrium quantity. • Q11. Determine the deadweight loss associated with the negative externality.

Microeconomic Theory

12th Edition

ISBN:9781337517942

Author:NICHOLSON

Publisher:NICHOLSON

Chapter17: Capital And Time

Section: Chapter Questions

Problem 17.10P: Wonopoly and natural resource prices Suppose that a firm is the sole owner of a stock of a natural...

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