Suppose the government imposes a 4 dollar tax on each unit of good produced by each firm. Each firm's cost function is now C(g) = 200 + 4g + q*/2, where the 4q reflects the tax payment. What is each firm's new supply function? Oq = p+ 40 Oq = p-40 Oq = p- 4 Oq = Suppose we are in a short-run equilibrium after the government tax and there are no firm entrants/exits. What is the new equilibrium price and market-level quantity? Note that the market-level demand curve is still the same, Qp = 2000 – 50p. Op = 16, q = 500 Op = 20, q = 800 Op = 22, q = 900 Op = 24, q = 1000 Suppose we are now in a new long-run equilibrium with the government taxes in place. Relative to the short-run equilibrium after the tax, which of the following statements is true? Oprice decreases, market-level quantity increases, and each firm's quantity increases Oprice increases, market-level quantity decreases, and each firm's quantity increases Onew firms enter the market

A perfectly competitive market is characterized by the following inverse demand function and inverse supply function where Q is output and P is the price in dollars. Demand: P = 100 – QD Supply: P = 10 + QS Suppose that a price ceiling of $30 is set by the government. Calculate the consumer surplus, the producer surplus, and the deadweight loss as a result of the government price ceiling

Show that any linear inverse supply that passes through the origin (i.e., an inverse supply with the functional form p = c Q with c > 0) has a price elasticity of supply equal to one. Show that any linear inverse supply curve with a positive intercept (i.e., having the functional form p = k + c Q with c, k > 0) must be elastic.

Assume the aggregate demand and supply of a good are given by: Qd(p)=16−p  &  Qs(p)=3p−4  a.) Where p equals the price of the good. If there are no taxes imposed on the consumption or production of the good, what will be the competitive equilibrium quantity?

Caprica Corporation is a large conglomerate that has interests in various industries such as mining, oil refining, chemicals, and consumer goods. In the chemical industry, Caprica produces and sells Kalocin, a substance used in the production of most analgesic drugs. Caprica recently acquired the only firm that controls the extraction of a key raw material used to produce Kalocin. Jane Harris, an industry expert, expects the total surplus in the domestic market for Kalocin to fall following this acquisition. Her colleague, Brian Hall, disagrees. He feels that the acquisition will in fact increase efficiency in the market. Which of the following, if true, will most strengthen Jane's argument? O A. The net benefit accruing to Caprica will increase following the acquisition. ⒸB. Caprica's per-unit revenue before the acquisition was equal to the cost of producing an extra unit of Kalocin. O C. The demand for analgesic drugs is expected to increase in the coming year. O D. A Sri Lankan firm…

Rent controls force landlords to price apartments below the equilibrium price level. An immediate effect is a shortage (excess demand) of apartments, because the quantity of apartments demanded is greater than the quantity supplied at the regulated price. When cities prevent landlords from charging market rents, which of the following are common long-run outcomes? Check all that apply. The future supply of rental housing units increases. Efficient use of housing space results. Nonprice methods of rationing emerge. The quantity of available rental housing units falls. Note:- Please avoid using ChatGPT and refrain from providing handwritten solutions; otherwise, I will definitely give a downvote. Also, be mindful of plagiarism. Answer completely and accurate answer. Rest assured, you will receive an upvote if the answer is accurate.

The inverse supply function for coal is PS = 2 + QS. The inverse demand function for coal is PD = 20 - 2QD. By how much does consumer surplus increase when a $3 subsidy to consumption is introduced? (Assume that no tax was in place before the subsidy is introduced).

qD = 100 – 0.5p,  qS = 2p – 20 What is the price elasticity of supply? Is the situation modeled here more likely to be reflecting a short- or long-run equilibrium? Why?

Suppose that a certain product has the following demand and supply functions. Demand: Supply: p = -0.049 + 45 0.049 + 20 p = A $5 tax per item is levied. Determine the supply function when tax is added. p = Find the market equilibrium point after the tax. C (q, p) = =

Rent controls force landlords to price apartments below the equilibrium price level. An immediate effect is a shortage (excess demand) of apartments, because the quantity of apartments demanded is greater than the quantity supplied at the regulated price. When cities prevent landlords from charging market rents, which of the following are common long-run outcomes? Check all that apply. The future supply of rental housing units increases. Efficient use of housing space results. Nonprice methods of rationing emerge. The quantity of available rental housing units falls. Step by step with explanation answer.