The sugar market has a supply curve with formula: Ps= 5 +0.1Qs, and demand curve: Pd = 68-0.32Qd The government imposes a price floor of 22.9 Approximately what is the dead weight loss? 108 63 141 14 O 17
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- Find the consumer surplus, producer surplus and total surplus, given the following: Demand: ? = −?^2 − 8? + 70Supply: ? = ?^2 − 2? + 14The following graph represents the demand and supply for pinckneys (an imaginary product). The black point (plus symbol) indicates the pre-tax equilibrium. Suppose the government has just decided to impose a tax on this market; the grey points (star symbol) indicate the after-tax scenario. PRICE (Dollars per pinckney) 37.50- 30.00 22.50 Demand Result Per-unit A B D с E 2.5 Supply QUANTITY (Pinckneys) Complete the following table, given the information presented on the graph. Equilibrium quantity after tax Price producers receive before tax $ Value ?Consider a competitive market with demand equal to Q=1,200-10P and supply equal to Q=2OP. a. What is the value of consumer surplus, producer surplus, and total surplus at equilibrium? b. Suppose the government introduces a price ceiling of P=$25. What impact does this have on consumer surplus, producer surplus, and total surplus relative to the competitive equilibrium outcome?
- Suppose the equations below represent the market supply and demand for cellular service. QD = 50 – 0.25P QS = 2P – 76 a. Graph the supply and demand curves, and label the equilibrium quantity and price. b. Calculate the amount of Consumer Surplus and Producer Surplus in this market. c. Suppose the government enacts a per-unit tax of $9 for each unit sold. Illustrate the effect of this tax in your graph of the market for cellular service, and calculate the new market price and quantity sold. d. Calculate the amount of deadweight loss associated with this per-unit tax. e. Calculate the share of the tax burden that the sellers bear. f. Briefly explain why there is a relationship between the slopes of the supply and demand curves, and the tax burden on each side of the market.3) Find the cquilibrium price and quantity, the consumer surplus, producer surplus, and total surplus in the market represented by the following equations Pd=10-2QdPs=2+2QsThe demand and supply for corn is given by D=1000-P and S=3P repsectively. 14) To stabilize corn prices, the government introduced a price floor of $260 and a price ceiling of $380. What will the equilibrium production and consumption levels be? By how much will the consumer surplus change? By how much will the producer surplus change? 15) If the government wants to have the consumption of corn to be 700 units, can it achieve its goal by imposing a per-unit tax on producers or by providing a per-unit subsidy for producers? If yes, find the amount of such tax or subsidy. If not, show an alternative tax or subsidy strategy that can achieve the desired consumption level.
- supplu and demand equations: p= D(q)= 70-.2x p= S(q)=13+.004x^2 find equilibrium, consumer surplus and producer surplus.Consider a free market with demand equal to Q = 1,200 – 10P and supply equal to Q = 20P. A. What is the value of consumer surplus? What is the value of producer surplus? What is the total surplus? B. Now the government imposes a $10 per unit subsidy on the production of the good. What is the consumer surplus now? The producer surplus? Why there is a deadweight loss associated with the subsidy, and what is the size of this lossThe market for tomatoes is competitive and characterized by a demand function of the form QD = 60000 - 4000p and a supply function of the form Qs = 6000p -30000, where quantity is measured in kilograms and p is the price per kilogram. %3D Suppose the government starts to charge sales tax on tomatoes. The tax is at 5% for every dollar a consumer spends on on tomatoes. 1. Calculate the equilibrium prices and quantity under the value tax 2. Calculate the government tax revenue, and the deadweight loss of the tax.
- Question 2i Given the following information QD = 240 – 5P QS = P where QD is the quantity demanded, QS is the quantity supplied and P is the price. Suppose that the government decides to impose a tax of $12 per unit on sellers in this market. Determine: Total surplus after taxQuestion 2f - part 2 Given the following information QD- 240- 5P QS = P where QD is the quantity demanded, QS is the quantity supplied and P is the price Suppose that the government decdes to impose a tax of $12 per unit on sellers in this market. Determine: Producer surplus after taxGRAPH. Qd=84-2w and a Qs= -44+14w. If the government imposes a fixed price of 9 dollars how will the consumer surplus and producer surplus be affected? Explain.
