Supply and demand curves for an item of medical equipment are shown in the graph below.  In order to compete with a new product by a rival company, the price is temporarily lowered to $20,000. What is the reduction (from equilibrium) in producer surplus that results from this artificially low price?

Consider the market for bicycles in the fictional province of Westvale. The market demand function for bicycles is given by P=300-2Q. The marginal cost curve for firms in this market is given by P=40+Q. Prices are measured in dollars.    a) Under a competitive market equilibrium, what is the price of a bicycle?  b) How many bicycles are produced under a competitive market equilibrium?  c) Calculate consumer surplus, producer surplus, and total surplus under the competitive market equilibrium    Suppose that the firms that were once competing in this market merge into one single firm, forming a monopoly. This monopoly has a marginal revenue function of P=300-4Q. d) What price does this monopolist charge?  e) How many bicycles does the monopolist produce?  f) Calculate consumer surplus, producer surplus, and total surplus under the monopolistic market outcome  g) How much deadweight loss resulted from the creation of the monopolist?

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?

Given a demand of q = 100 – 5p and a cost of c(q) = 4q. What is the equilibrium retail price p, wholesale price w, and profits from the manufacture and sale of the product?