Subsidies lead to overproduction and overconsumption relative to the competitive equilibrium. What is the deadweight loss associated with this? Why is there a deadweight loss? Depict this in your original figure (see attached), or draw a new figure.

A small province is planning to levy a hotel room tax of $20 per night on hotel owners to recover some of the costs of government services associated with nonresidents. The average price of a standard hotel room in this province before the implementation of the tax is $150 per night. Market analysts predict that the average price of a hotel room will increase to $155 per night after the tax.   a) Use the supply and demand model to illustrate and explain how the proposed tax on hotel operators will impact the market for hotels. Clearly show in your diagram and explain in words the impact on price and quantity of hotel rooms as well as the revenue raised and any deadweight loss caused by the tax.  b) Discuss how tax incidence is shared between buyers and sellers. What share of this tax is paid for by buyers, and what share is paid for by sellers?  c) What do your findings in part b tell you about the price elasticity of demand for hotel rooms compared to the price elasticity of supply?…

In the free-market equilibrium of a perfectly competitive market, the price of the good is 90 dollars and the elasticity of demand and the elasticity of supply values are respectively Ed* = -6.6 and Es* = 4.1 Suppose the government imposes a per-unit tax equal to 10.4 payable by consumers. Calculate the estimate of the price firms charge consumers in the tax equilibrium using the elasticity values provided above. Then enter that price value below.

Assume that the demand and supply functions for each bottle of Beer ABC are. Quantity Demand= 1,000 – 400P Quantity Supply  = 100P If a price ceiling is set at $2.50 for each bottle, what will be the impact on the market equilibrium?  Any changes in quantity demand or quantity supplied?

Using the demand and supply graph given below, explain the impact of the ban in the market for cigarettes.

The following formulas represent the demand and supply curves for corn: QD = 1,600 – 125 * P QS = 440 + 165 * P Calculate the equilibrium price and quantity in this market . Suppose corn becomes less popular so the market demand curve is now given by QD = 1,020 – 125 * P. Calculate the new equilibrium price and quantity and illustrate the movement from the old equilibrium to the new one.

Consider a market that can be represented by a linear demand curve, QD = 200 – 2PD, (where QD is the quantity demanded and PD is the price that demanders pay) and a linear supply curve that QS = ½ PS (where QS is the quantity supplied and PS is the price that suppliers get). a. What is the equilibrium price? b. What is the equilibrium quantity? c. What is demand elasticity at the equilibrium point?

Suppose the market for pizzas in the U.S. is perfectly competitive and is characterized by the following demand and supply equations (Q = quantity and P = Price): Demand for pizza: Qd = 100 – P Supply of pizza: Qs = 2P − 50 A) Find the market clearing equilibrium price P* and quantity Q*. B) Find the the consumer surplus and producer surplus at the equilibrium. C) Suppose that the U.S. imposes a price ceiling at $40. What is the quantity demanded by consumer (Qd’)? What is the quantity supplied by suppliers (Qs’)? D) Suppose that the U.S. imposes a price ceiling of $40. Is there a shortage or surplus for pizzas? E) Suppose that the U.S. imposes a price ceiling of $40. What is the new CS’ and PS’? Assuming that the government purchases/provides the surplus/shortage. Under the same assumption, what is the deadweight loss caused by the price floor?

Please help me answer each part of the questions in detail. Thank you

d) What will be the deadweight loss? e) What will be the firm’s maximum profits? f) How much would the firm would save in additional costs, if it had decided to supply all of that output at the point of equilibrium?