Consider a market with (inverse) demand and supply curves given by: P = 100 - QD and p = 3Qs What is the total surplus in the market when the volume of trade is restricted to 10 units? O $1000 O $800 O $600 O not enough information provided
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- Consider the inverse demand and supply for dates to be given by P=30-3Qd and P=6+Qs The total surplus in this competitive market is ________ where _______ is due to producers. OPTIONS: (i) $50, 50% (ii) $54, 80% (iii) $18, 75% (iv) $72, 25%he inverse demand function for portable electric heaters is P=220-Q and the supply function is P=20+3Q. Find the competitive equilibrium in the market of portable electric heaters (price and quantity) and represent it graphically. Compute the consumer surplus, producer surplus, and total welfare corresponding to the equilibrium found at point (a) and represent them on the graph. The government believes portable electric heaters are a very inefficient way of space heating. For this reason, it introduces a specific tax of 20 for each portable electric heater sold. Find the new quantity exchanged on the market after the introduction of the tax, the price paid by the buyers, and that received by the sellers. Compute the new consumer surplus, producer surplus, and total welfare after the introduction of the tax and represent them on the graph. Does the government’s intervention generate a loss of welfare? If yes, explain why and compute it. Use the price elasticity of demand and supply in…Supply and Demand Q1 Assume that the demand curve D(p) given below is the market demand for apples: Q=D(p)=280−20pQ=D(p)=280-20p, p > 0 Let the market supply of apples be given by: Q=S(p)=48+9pQ=S(p)=48+9p, p > 0 where p is the price (in dollars) and Q is the quantity. The functions D(p) and S(p) give the number of bushels demanded and supplied. What is the consumer surplus at the equilibrium price and quantity? Round the equilibrium price to the nearest cent, use that rounded price to compute the equilibrium quantity, and round the equilibrium quantity DOWN to its integer part.Maintain full precision for the vertical intercept by carrying the full fraction into your consumer surplus calculation.Please round your consumer surplus answer to the nearest integer.
- Suppose the demand and the supply for lumber (harvested wood processed in a sawmill) used for construction in Australia are given by QD =100 – 2P QS = 1/2P Assume also that the market is perfectly competitive 7. Steel is a substitute for lumber in construction. Now suppose the price for steel rises. Use a graph of supply and demand to show what happens in equilibrium. Show changes relative to the original equilibrium you found. 8. the government introduces a subsidy of s=5 per unit of lumber transacted in the market. Calculate the new equilibrium quantity and the price paid by consumers and received by producers 9. Given the subsidy in 8, calculate and illustrate in a graph the consumer surplus, producer surplus and subsidy expenditure. 10. Calculate the deadweight loss caused by the subsidy in 8 and illustrate it in a graph. 11. Who benefits more from the subsidy, consumers or producers? Why?Consider the market for full-sized sports utility vehicle. Please box in mathematical solutions. Suppose the following equations describe market demand and market supply for these vehicles:Inverse Demand Function: MB = 180,000–QdMarginal Cost Function:MC = 0.25 Qs a.Determine the market equilibrium price and quantity and denote them by P0and Q0. Show your answer both graphicallyand mathematically. No lazy plotting; be accurate. Use larger graphs for clarity. b.What is total surplus at this equilibrium? Calculate surplus numerically as well as indicate the area on the graph that corresponds with total surplus. part aConsider the market for full-sized sports utility vehicle. Please box in mathematical solutions. Suppose the following equations describe market demand and market supply for these vehicles:Inverse Demand Function: MB = 180,000–QdMarginal Cost Function:MC = 0.25 Qs a.Determine the market equilibrium price and quantity and denote them by P0and Q0. Show your answer both graphicallyand mathematically. No lazy plotting; be accurate. Use larger graphs for clarity. b.What is total surplus at this equilibrium? Calculate surplus numerically as well as indicate the area on the graph that corresponds with total surplus. part b
- The demand curve for product X is given by QXd = 420 − 4PX.a. Find the inverse demand curve. Instruction: Enter all values as integers, or if needed, as a decimal. PX = − QXdInstructions: Enter your responses to the nearest penny (two decimal places).b. How much consumer surplus do consumers receive when Px = $50?$ c. How much consumer surplus do consumers receive when Px = $25?$ d. In general, what happens to the level of consumer surplus as the price of a good falls?The level of consumer surplus as the price of a good falls.The demand (D) and supply (S) function for a commodity are P =100 – 2Q and P = 10 + Q, respectively. (a) Find the equilibrium price and quantity. That is, find the price and quantity where the D and S functions intersect. (b) A new 10% tax is imposed on this commodity. Find the burden of the tax on demanders and the burden on suppliers. Also find the total taxes. [In order to insure that we all do this problem in the same way, let’s assume that the tax is imposed on the supply side of the market. In addition, the burden of the tax on demanders is the difference in price demanders pay when the tax is in existence less the price they paid when there was no tax. The burden on suppliers is the difference in price suppliers received when there was no tax and the net price (after remitting tax to the government) they receive when the tax is in existence.]Suppose that in a certain market the demand function for a product is given by p =−8q + 2800 and the supply function is given by p = 3q + 45. Then a tax of $5 per itemis levied on the supplier, who passes it on to the consumer as a price increase. Findthe equilibrium price and quantity after the tax is levied.
- Consider that the market for soybeans is defined by the following demand and supply equations: QD = 200 - 10P and QS = 20P - 100, where P is the price in dollars and Q measures the quantity in tons per quarter. The market is currently in equilibrium. Now consider that after much lobbying by the United Farmers Association, the government imposes a price control of $12.50 in this market, with no additional government support. 1.Given the current market environment, what is the total surplus in the market? 2.Describe the current market outcome. As the result of the government’s policy, the current market outcome is __________(efficient ? not efficient?). The quantity traded is __________(less than ? greater than ?) the quantity traded before the government intervention, and price sellers ( farmers) receive per ton is __________(equal to 10? equal to 12.50? less than 10? less than 12.50 and greater than 10?). Additionally, as a result of the government’s policy sellers seem to be…The supply curve for product X is given by QXS = −500 + 10PX .a. Find the inverse supply curve.P = ____+ ____Qb. How much surplus do producers receive when Qx = 470? When Qx = 1,190?When QX = 470: $ When QX = 1,190: $The market demand function for ice cream is Qd = 10 - 2P and the market supply function for ice cream is Qs = 4P - 2, where both quantities are measured in millions of gallons per year. What is the aggregate surplus at the competitive market equilibrium? Question 17 options: $4.5 million $9 million $13.5 million $27 million
