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A: Hi, since there are multiple subparts questions posted, we will answer first four subparts.
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The situation of zero excess
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- A binding price ceiling will have which of the following consequences? Group of answer choices There are no consequences to a binding price ceiling. The quantity supplied will always exceed the quantity demanded. There will be downward pressure on prices until quantity demanded equals quantity supplied. There will be upward pressure on prices until quantity demanded equals quantity supplied. The quantity demanded will always equal the quantity supplied.The short-run demand and supply elasticities for crude oil are -0.076 and 0.088, respectively. The current price per barrel is $30 and the short-run equilibrium quantity is 23.84 million barrels per year. What will be the effects on the market price and quantity if the government decides to purchase (and store away) an additional 2 million barrels of oil? Assume that the additional consumption of oil by the government results in a parallel shift of the supply curve to the left by 2 million barrels per day What could be the economic rationale for buying and storing oil?In the following question you are asked to determine, other things equal, the effects of a given change in a determinant of demand or supply for product X upon (1) the demand (D) for, or supply (S) of, X; (2) the equilibrium price (P) of X; and (3) the equilibrium quantity (Q) of X. Removing the excise tax on product X will
- An effective price ceiling is one that causes the market to ______________________when it is imposed. * stay at equilibrium move away from equilibrium move closer to equilibrium nothing can be said without additional informationGiven these supply and demand relationships drawn, if the actual price is $14, which of the following statements are TRUE? At $14, the demand is 16 At $14, the quantity demanded is 16 The equilibrium quantity s 12 At $14, the quantity supplied is 16 The equilibrium quantity is 16 At $14, the supply is 16 The equilibrium price is $14 At $14, the quantity supplied is 9 At $14, the supply is 9 The equilibrium price is $17 At the equilibrium price supply and demand would be equal At a price of $17, the quantity demanded and quantity supplied would be equal At $14 there is a market shortage of 7 units At $14 there is a market shortage of 4 units At $14 there is a market surplus of 7 units. Supply and Demand are equal at P=17.Market Demand: P_D=25 -2Q_D Market Supply: P_S=5 + 2Q_S Solve for the equilibrium price given the following demand and supply functions. If a government subsidy induces producers consider increasing supply by 2 more units. How will this affect the price and quantity of product consumed? (Please draw the original and new curves on the same graph)
- In a competitive market, the following supply and demand equations are given: Supply P = 5 + 0.36Q Demand P = 100 - 0.04Q, where P represents price per unit in dollars, and Q represents rate of sales in units per Year. 1. I. Determine the equilibrium price and sales rate. Determine the deadweight loss that would result if the government were to impose a price ceiling of £40 per unit.Consider a competitive market for which the quantities demanded and supplied (per year) at various prices are given as follows: Price $ Demand mln Supply mln 60 22 14 80 20 16 100 18 18 120 16 20 Calculate the price elasticity of demand when the price is $80 and when the price is $100. Calculate the price elasticity of supply when the price is $80 and when the price is $100. What are the equilibrium price and quantity? Suppose the government sets a price ceiling of $80. Will there be a shortage or a surplus, and if so, how large will it be?The inverse demand for table salt is p = 200qd+1 , while the inverse supply of table salt is p = 10+ 2qs. a. Find and interpret the price elasticity of supply (es) at the after-tax equilibrium price and quantity. (The equilibrium price before the tax is equal to 10.091, and after the tax is equal to 10.4949.)
- Which of the following statements about dead weight loss is false: A)If supply is price elastic, increasing the tax will increase DWL B)If demand is price elastic, increasing the tax will increase DWL C)Increasing taxes will cause DWL to increase at a decreasing rate D)DWL will increase as the size of a market increases, all else held constant E)More than one of the statements above is false ( Give proper explanation )If the current market price is $25, then the market will achieve equilibrium by Group of answer choices: a price decrease, decreasing the supply and increasing the demand a price increase, increasing the supply and decreasing the demand. a price decrease, decreasing the quantity demanded and increasing the quantity supplied. a price decrease, decreasing quantity supplied and increasing quantity demanded. a price increase, increasing the quantity supplied and decreasing the quantity demanded.For each of the following changes, determine whether there will be a movement along the demand/supply curve or a shift in the demand/supply curve. If there is a shift in the curve, indicate the direction of the shift. • an increase in the price of a complement in production • a decrease in tastes of consumers for a product • a decrease in the number of buyers in the market • a lowering of the product price • a worsening of business expectations • a decrease in government subsidies to firms