consider that the market demand for a textbook is given by P=100-2Q and the market supply is given by P=10+Q. Suppose a price ceiling of $20 is imposed. what is the deadweight loss?
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consider that the market demand for a textbook is given by P=100-2Q and the market supply is given by P=10+Q. Suppose a
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- The supply of book is perfectly elastic at a price of 200. The demand curve of consumer is given by the function Q=30000000-125000P, suppose that a 80 percent subsidy is imposed on the producer of book. calculate the excess burden resulting from the taxThe inverse demand for iClickers is p = 34-q and the supply is p = q. UCSB decides to subsidize iClickers by $10.0 per clicker. What is the deadweight loss of this policy?The market for used economics textbooks is perfectly competitive, with a market supply curve given by P = 6 + 2Q and market demand curve given by P = 42 – Q, leading to an equilibrium of P = 30 and Q = 12. If the government provides a subsidy of $12 per textbook, what will be the new market quantity? Determine the new CS and PS, the cost of the subsidy, and the amount of deadweight loss created by the policy.
- On a diagram, draw two linear demand functions, viz. one with greater own price elasticity of demand and another with relatively lower own-price elasticity of demand. The supply function is also linear and is the same in both scenarios. Assume that the same rate of quantity tax is imposed in both cases. Which demand function exhibits a greater 'DEADWEIGHT LOSS' ? Why is this happening ?Assuming a supply function of Qs = 100+100p and a demand function of Qd = 700-50p and an equilibrium price of $4 with an equilibrium quantity of 500million gallons please answer the last question regarding the deadweight loss.Suppose supply is P= 4 + (1/4)Qs and demand is P= 58 ―(1/2)Qd. Suppose a tax of $3 per unit is placed on the good. What is the size of the deadweight loss? What fraction of the tax is paid by producers?
- 3) Consider a commodity X whose demand function is 100-2P and which has a perfectly elastic supply curve. Initial price of the commodity is 40 $ . When the government puts a subsidy of 10% on X answer the following by drawing a graph a) Find the price after the subsidy. b) How much does the government pay as subsidy? c) Is there excess burden? If so, how much?If an effective ceiling price is placed on hamburgers, thenDemand for apples is given by the function P=50-4q while supply is given by P=10+q. If a per-unit tax of $15 is placed on apples, Calculate the deadweight loss?
- Demand for apartments in town is D (x) =860 – 3x, and the supply is S (x) =500+9x, %3D where x is the number of apartments, in hundreds, and D (x) and S(x) are the rent in dollars per month, per apartment. The equilibrium point is (30, 770). Suppose a maximum rent of $644 per month is imposed by the town council. Find the deadweight loss. $ 1176 $ 1152 $ 16 $ 3072Consider the following supply and demand curves: Demand: Price = 50-3.5*Qd Supply Price = 20+.5*Qs Suppose now a 20 dollar subsidy was placed on consumers. Given this information, find the dead weight loss created by the subsidyThe market for N-95 masks is perfectly competitive. Market Demand is given by Q=434-2P and Market Supply is given by Q=2P. The government imposes a price ceiling of $52. What is the maximum Consumer Surplus in the market with the price ceiling?