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A market is described by the following

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- The Organization for the Promotion of Brussels Sprouts has convinced the government of Ironia to institute a price floor on the sale of Brussels sprouts at $8 per bushel. Demand is given by:P = 9 – Qand supply by:P = 2Q,where Q is measured in thousands of bushels.Instructions: Round your answers to the nearest whole number.a. At market equilibrium, the price is $ per bushel and the equilibrium quantity is thousand bushels.b. With the price floor, the price is $ per bushel and the quantity sold is thousand bushels.c. The excess quantity supplied of Brussels sprouts produced with the price floor is thousand bushels.arrow_forwardRefer to the graph shown. Assume the market is initially in equilibrium at point b in the graph but the imposition of a per-unit tax on this product shifts the supply curve up from So to S1. The effect of the tax is to raise the equilibrium price from: Price S1 d P1+t SO P2 P1 P2-t Demand f e Q2 Q1 Quantity P2 - t to P1 +t. O P2 - t to P2. O P1 to P2. O P1 to P1 + t.arrow_forwardThe demand schedule for the lobster market is linear. The equilibrium quantity of lobster is 7,363 and the equilibrium price of lobster is $11. the quantity demanded of lobster is 9,139 when the price drops to $5. What is the value of consumers surplus in the lobster market? Enter your answer using 2 decimal places. Round up if the third decimal place is 5 or higher. Do not enter "$" as part of your answer. Omit the units.arrow_forward
- Suppose that the government establishes a price ceiling of $3.70 for wheat. What might prompt the government to establish this price ceiling?arrow_forwardFind the consumers' surplus and the producers' surplus at the equilibrium price level for the given price-demand and price-supply equations. Include a graph that identifies the consumers' surplus and the producers' surplus. Round all values to the nearest integer. p=D(x) = 110e 0.004x. `; p= S(x) = 25e0.004x The value of x at equilibrium is. (Round to the nearest whole number as needed.)arrow_forwardConsider the following market demand and supply: Demand: P = 16 - 4Qd Supply: P = 6+ 3Qs If the market is at equilibrium, what is the producer surplus? Note: Express your answer in units of dollars, to at least two digits after the decimal. 3.06arrow_forward
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