The demand and supply curves for instant oatmeal are as follows: Qa = 100.5Pd, where Qa is the quantity of instant oatmeal packets (in million units) demanded when the price consumers pay is Pa. Qs = 2 + Ps when Ps is greater than or equal to 2; Qs = 0 when Ps < 2, where Qs is the quantity of instant oatmeal (in million units) supplied when the price producers receive is Ps. Suppose the government imposes a price ceiling of $6 in the market for oatmeal. What are the equilibrium price and quantity in the market without a price ceiling? What is the size of the shortage in the market with the price ceiling? What is the producer surplus? What is the consumer surplus? What is the total surplus/welfare? What is the deadweight loss?

Suppose you are given the following supply and demand equations for your company's product, executive fountain pens: Qd = 12,000 - 2P + 3Py - 5Pn - 2Pk + 4M + 3A Qs = 8,000 + 4,000P - 7Pm - 3Pw where:   Qd = quantity demanded of fountain pens Qs = quantity supplied of fountain pens P = price per unit of fountain pens Py = price per unit of pencils Pn = price per unit of notebooks Pk = price per bottle of ink M = consumer income A = number of units of advertising purchased by the company Pm = cost of purchasing materials (inputs) for fountain pens Pw = cost of hiring a worker (wage rate) a) given the signs of the coefficients in the demand equation, how does the demand for fountain pens react to each variable (i.e., substitutes, complements, normal good, inferior good)?   b) given the signs of the coefficients in the supply equation, how does the supply for fountain pens react to each variable?   c) suppose you are given the following data:   Py = $10 Pn = $15 Pk = $8 M = $20,000 A =…

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QUESTION 4 For the following demand function: Q(P) = 36,500-5P Calculate the price where the quantity demanded falls to zero 7,300 8,300 7,400 9,400