QUESTION 1 Given a demand curve of P = 1200-40Qd and supply of P = 200 + 10Qs and a binding price control at 725, please calculate the transfer of surplus, between HH and firms in the output market.
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- A6 A functioning market exists when there is more than one firm on either the buying side of the selling side of the market for a particular product.Suppose that the figure given below depicts the demand for grape oll, which can be purchased in any quantities and sold at any price. Price per litre 6 5 A 3 2 1 0 D 100 200 300 400 500 600 700 800 900 1000 Quantity per period a) What is the total consumer surplus if the price per litre is $3.0? (Hint: Area of a triangle?) Total consumer surplus: $ b) What is the total consumer surplus if the price per litre is $1.0? Total consumer surplus: $use diagramsa. What is the effect on the equilibrium price and quantity traded in market of theintroduction of a new technology that reduces costs of production for all firms?b. What is the effect on the equilibrium price and quantity traded in a market of a changein tastes that reduces the demand for the product?c. What is the effect on the equilibrium price and quantity traded in a market of theimposition of a tax per unit sold on suppliers?d. What is the effect on the equilibrium price and quantity traded in a market of thepayment of a subsidy per unit sold paid to suppliers?
- S SR D SLR pc P Q° Figure 1: Rent Control The following diagram illustrates the market for rental housing in Berkeley. Before rent control, the competitive equilibrium was at Pc and Qc. Rent control limits the price a landlord can charge to P. The short- run and long-run supply curves are indicated. In the short run the number of rental units is fixed. (1) What will be the equilibrium number of rental units in the long-run? Explain the transition. (2) What are the long-run efficiency and distributive effects? İs the imposition of rent control a potential Pareto improvement? Explain. (3) Why has rent control been called the most effective way to destroy, short of bombing, the stock of rental housing in a city?Question One. A market consists of 5000 identical households and 100 identical producers. The demand a. equation for a typical household over a week is given by C = 30 - 2p + 0.001PCD-0.028P. Where i 1, 2, 3..5000 And the supply equation for a typical firm over a week I given by = -50 + 10p- 0.5PL-0.1P Where j 1,2,3...,100 i. Write the market demand and supply equations ii. Assume a households' per capita disposable income PCDI is $8,000. Further assume that Pe, PL, and PE are $20, $100, and $80, respectively. Determine the market equilibrium price and quantity. iii. What would be the equilibrium price and quantity if the households' per capita income increased to $8,500, ceteris paribus? iv. Assume that due to inflation, the cost of labor increases by 30 % and price of energy by 40 %. What is the new market equilibrium price and quantity? Measure the impact of the change in prices of labor and energy by comparing the new equilibrium values with values (You will be doing comparative…QUESTION 11 A market for clocks is in equilbrum You are told that marginal costs of producing clocks is constant at P 25 (Then the oply carvei You dont know anything sbout the demand curn What is producor surplus in this market?
- QUESTION 16 Scenario 1 Duccoy quarty-setting fns tace the maret derand pa 150-0 Each fim has a magnal cost e S15 per unit (Refer to Scenario 1.) Under The Stackelberg competition, the approximate equilibrium total quantity supplied and the market price are respectively. a. 80; 70 b. 90; 60 C 110: 40 d. 100; 50 andGiven a demand curve of P = 1200 - 40Qd and supply of P = 200 + 10Qs and a binding price control at 726, please calculate the transfer of surplus, between HH and firms in the output market.Given a demand curve of P = 1200-400d and supply of P= 200 + 100s and a binding price control at 611, please calculate the transfer of surplus, between HH and firms in the output market.
- Assume the market for headbands is characterized by a downward sloping demand curve and an upward sloping supply curve. Suppose there is an improvement in technology for producing headbands. Which of the following would occur? A C E The total surplus (sum of producer and consumer surplus) would increase B The change in equilibrium price would cause total producer surplus to increase D The impact on total consumer surplus would be indeterminate, because of the offsetting impact of the changes in equilibrium price and quantity The supply curve would shift up, resulting in an increase in the equilibrium quantity and total producer surplus The demand curve would shift right in response to an increase in equilibrium price https://bcps.schoology.com/common-assessment-print/course/6305214264/6083116066?multipleQuestions=1&includeAnswerkey=1&includeBlank 10/33Assume the daily demand curve for Potato is given by Demand: Q = 1500 − 15P where, QD demand in kilos per day and P is price per kilos. The long-run supply curve for Potato is given by Q = 12P − 1201. What is the long-run equilibrium Price and Quantity?2. Based on your answers in (1), what is consumer surplus at this equilibrium? What isproducer surplus at this equilibrium?3. Graph your resultsWhat is producer surplus, and how is it measured? What is the relationship between the cost to sellers and the supply curve? 2. Why do flounder populations face the threat of extinction while goidfish populations are in no such danger The government often intervenes when private markets fail to provide an optimal level of certain goods and services. For example, the goverment imposes an excise tax on gasoline to account for the negative extemality that deivers impose on one another. Why might the private market not reach the socially optimal level of traffie on the road without the help of goverament? A key difference berween accountants and economists is their ditferent treatment of the cost of capital Does this cause an secouutants estumate of total costs to be higher or lower than an economist's estimate? Explain
