The Health Ministry is evaluating the data of the soft beverages market. Demand function: Qp = 310 – 4P Supply function: Qs = -70 +4P Submit answers in two decimal places if you get answers in decimals/fractions (a) Find the Total Surplus. The authority is concerned about the increasing obesity rate in the country. Hence, they have decided to impose a tax of TK 5 per unit on soft drinks. Submit answers in two decimal places if you get answers in decimals/fractions (b) What is the total of new consumer surplus and producer surplus after government intervention?

The Health Ministry is evaluating the data of the soft beverages market. Demand function: Qp = 310 – 4P Supply function: Qs = -70 +4P Submit answers in two decimal places if you get answers in decimals/fractions (a) Find the Total Surplus. The authority is concerned about the increasing obesity rate in the country. Hence, they have decided to impose a tax of TK 5 per unit on soft drinks. Submit answers in two decimal places if you get answers in decimals/fractions (b) What is the total of new consumer surplus and producer surplus after government intervention?

Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)

14th Edition

ISBN:9781305506381

Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Chapter2: Fundamental Economic Concepts

Section: Chapter Questions

Problem 1E: For each of the determinants of demand in Equation 2.1, identify an example illustrating the effect...

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The Health Ministry is evaluating the data of the soft beverages market. Demand function: QD=270−4P Supply function: QS=−70+4P Submit answers in two decimal places if you get answers in decimals/fractions (a) Find the Total Surplus. The authority is concerned about the increasing obesity rate in the country. Hence, they have decided to impose a tax of TK 5 per unit on soft drinks. Submit answers in two decimal places if you get answers in decimals/fractions (b) What is the total of new consumer surplus and producer surplus after government intervention?
Harding Enterprises has developed a new product called the “Quest Simulator (QS)”. The market demand for this product is given as follows: Q = 240 - 4P. If QS is priced at $40, what is the point price elasticity of demand? Is demand elastic or inelastic? What is the maximum amount that consumers are willing to pay for the quantity demanded at the price of $40? (hint: it includes both the total expenditures and the consumer surplus) If the price of QS is increased slightly from $40, what will happen to the total expenditure on the product? What will happen to the consumer surplus? Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.
1. Demand for grain is given by function Qd=9-4P and supply - by function Qs=2P. The government also entered the market and bought 6 units of the grain. Which equilibrium price will be established in this market and how much grain will be sold? 2. Price elasticity of demand and income elasticity of demand are accordingly -0,4 and 1,1. The changes in price and income accordingly amounted to 12% and -5%. Find the percentage change in quantity demanded. 3. Price elasticity of demand, last sale, last price, and initial price accordingly are -1,5; 20; 10; 40. Find the initial sale.
Suppose Suzuki has the following demand and supply function for Cultus VXL: Qd = 55 - 5P Qs = -50 + 10P After the government decided to impose tax on the production of Cultus VXL, the new supply function: Qs = -60 + 10P Given the information above , answer the following questions: Find out the equilibrium price and quantity before tax. Find consumer and producer surplus before tax. Determine government revenue and dead weight loss after tax.
The demand function for beef is Qd = 100 – 3P and supply function for beef is Qs = 10 +2P. Price elasticity of demand is – 0.1 and price elasticity of supply is 0.02. ii. Calculate new price of beef in the market when government introduces a specific tax of N$0.25 per kg.
Suppose the inverse demand curve for good X is given by the equation Px=10-Qx/10 and the supply curve is perfectly elastic (horizontal) at RM1. Good X is presently taxed at RM2 per unit. Good Y (which is independent of good X) has an inverse demand curve Py=5-Qy/20 and is also elastic at RM1. Good Y is untaxed 1. How much tax revenue is collected and what is the excess burden of the RM2 tax on X 2. How much revenue is collected if the tax on good A is reduced to RM1 per unit and good B at RM1 per unit? 3. What is the total excess burden of taxing both goods at RM1 per unit?
Suppose the following demand and supply function of a commodity. 15 Qd = 55 - 5P Qs = -50 + 10P After imposing tax, the new supply function is Qs = -60 + 10P Find out the equilibrium price and quantity before tax.
Qd = 55 - 5P Qs = -50 + 10P After the government decided to impose tax on the production of Cultus VXL, the new supply function: Qs = -60 + 10P Given the information above answer the following questions: Find out the equilibrium price and quantity before tax. Find consumer and producer surplus before tax. Determine government revenue and dead weight loss after tax.
The demand function for beer is given below, where p is the retail price and D(p) is the demand in gallons per capita. For the demand function, find the elasticity of demand E(p) for any price p. [Note: You will find that demand is inelastic. This means that taxation, which acts like a price increase, is an ineffective way of discouraging liquor consumption, but is an effective way of raising revenue.] D(p) = 6.913p−0.142
A manufacturer sells two related products, the demand for which is characterized by the following two demand functions: q1 = f1 (p1, p2) = 200 – 6p1 – p2 q2 = f2 (p1, p2) = 150 – p1 – 4p2 where pj equals price (in dollars) of product j and qj equals the demand (in thousands of units) product j. (a) How many units are expected to be demanded of each product if $18/unit is charged for product 1 and $36/unit is charged for product 2? (b) How many units are expected if the units price are $40 and $30, respectively?
The coconut oil demand function (Buschena and Perloff, 1991) is Q = 1,200 - 9.5p + 16.2 pp + 0.2Y, where Q is the quantity of coconut oil demanded in thousands of metric tons per year, p is the price of coconut oil in cents per pound, Pp is the price of palm oil in cents per pound, and Y is the income of consumers. Assume that p is initially 45 ¢ per pound, Pp is 31 ¢ per pound, and Q is 1,275 thousand metric tons per year. Calculate the income elasticity of demand for coconut oil. Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.
In a particular market, demand and supply curves are defined by the following equations:QD = 300 – 20P,QS = -540 + 40P,where P is the price per unit in pounds. A) At the equilibrium point, what is the elasticity of demand? B) If the price is £12, what is the elasticity of demand?