The market demand is given by P=250-2Q and the market supply by P=40+Q. What will be the resulting deadweight loss, if a price ceiling of 59 is being implemented?

18-19. In the competitive market for white sugar, consumer demand is given by P=100-0.050 and suppliers' behaviour is represented by the supply curve of P=1+0.005Q, where P is measured in dollars and Q is measured in kilos per month. Questions 17 through 19 refer to this market. 18. Imagine now that the government imposes a price ceiling of $5.00 per kilo on sugar, and that the ceiling is obeyed by all market participants. In the resulting equilibrium the total number of kilos of sugar exchanged in the market is equal to: A) 2100 G) 800 B) 2000 H) 600 A) $5 G) $70 C) 1900 I) 400 B) $10 H) $80 19. Suppose suppliers obey the price ceiling but consumers sell sugar on a black market. What will the black market price for sugar be? D) 1400 E) 1200 J) None of the above C) $10.50 I) $21 E) $50 F) 1000 D) $40 J) None of the above F) $60

Suppose Home is a small exporter of wheat. At the world price of 100 US dollars per tonne, Home growers export 20 tons of wheat. Now suppose the Home government decides to support its domestic producers with an specific export subsidy of 40 US dollars per tonne. Use Figure 1 to answer the following questions: Figure 1: Supply and Demand for Wheat at Home Home price 140 100 X 10 20 40 50 Supply Demand Quantity (a) Explain why consumer and producer surplus can be used to gauge the change in welfare caused by the export subsidy on individuals and firms.

Explain why the imposition of the price ceiling does not result in a deadweight loss.

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.

Suppose that the demand and supply functions for good x are given as follows: Q=120-2P, +I+P, and Q=-30+ P₁ - 2r+s-2/ where P, denotes the price of good x, P, denotes the price of a related product y, I denotes income, t denotes tax firms face, s denotes subsidy and f denotes factor prices. What happens to the price and quantity equilibrium of good x as Income falls? Price equilibrium falls while quantity equilibrium rises. Both equilibrium price and quantity fall. Price equilibrium rises while quantity equilibrium falls. Both equilibrium price and quantity rise.

For years the government has subsidized higher education through grants; consider the demand and supply for college credit hours at a local private liberal arts collegeQD = 6,000 – 300PQS = 700P – 500 where P is the price, in hundreds of dollars, and Q is the number of credit hours per semester. Suppose the government subsidizes credit hours at a rate of $120 per hour. Calculate changes in consumer surplus. What is the size of the deadweight loss?

The market for N-95 masks is perfectly competitive. Market Demand is given by Q=486-2P and Market Supply is given by Q-2P. The government imposes a per-unit tax of $5, what is the market quantity with the tax? Note: you don't need to know who pays the tax to answer this question.

Demand: Qd= 2,600 - 5P Supply:  Qs= 1000 + 10P What would be the amount of shortage if a price ceiling is imposed at $180?

Suppose the figure represents a local cattle market. What would be the effect on this market of the local government regulating a price ceiling of $0.80 per pound? 2.40- The price ceiling is below the market equilibrium price. 2.20- 2.00- Supply The market would have a thousand pounds. (Enter your response as a whole number.) 1.80- 1.60- E 1.40- * 1.20- 8 1.00- 8 0.80 0.60- 0.40- Demand 0.20- 0.00+ 10 20 30 40 50. 60 70 80 90 100 11o 120 Quantity (pounds in 1000s)