The Spacing Guild has a monopoly on space transport. They sell tickets (Q) for seats on starships for interstellar travel at a per-ticket price of P. All tickets cost the same. The Marginal Cost for each seat is $18 and there is a fixed cost of $6,307. Market demand is Q=329-4P. If the government imposes a price ceiling of $30, what is the Guild's PROFITS in the SHORT-run?

The market demand function for corn is Q = 30 - 2P. The market supply function is QS = 5P-2.5, both measured in billions of bushels per year. Suppose the government imposes a $8.10 tax per bushel. What will be the effects on aggregate surplus, consumer surplus, and producer surplus? What will be the deadweight loss created by the tax? Instructions: Round your quantities to the nearest whole number. Round prices, surpluses and deadweight losses to 2 decimal places. a. What are the initial equilibrium effects? Complete the table below. Initial equilibrium price Initial equilibrium quantity Initial equilibrium consumer surplus Initial equilibrium producer surplus After-tax equilibrium price After-tax equilibrium quantity After-tax equilibrium consumer surplus After-tax equilibrium producer surplus $ Government revenue After-tax equilibrium aggregate surplus Deadweight loss Before the tax Initial equilibrium aggregate surplus b. What are the effects after the government imposes a $8.10 tax…

In a perfectly competitive market for cheese with downward sloping demand and upward sloping supply, the equilibrium price is $12 per kilo. If the government imposes a price ceiling of $10, we can conclude that the government policy will: Select one: a. reduce the number of units sold only if demand is elastic b. decrease producer surplus and decrease total surplus c. reduce the number of units sold only if demand is inelastic d. decrease producer surplus but increase total surplus e. increase producer surplus but decrease total surplus

Suppose the following demand and supply function: Qd = 750 – 25P Qs = -300 + 20 P  Find consumer and producer surplus

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?

Dominos Pizza is trying to attract pizza delivery drivers away from Pizza Hut by offering them hourly wages above the current market wage (assumed to be $8 per hour). If the correct supply price elasticity for delivery drivers is 3.0 and Dominos wants to increase its delivery personnel by 15 percent, then they must increase their hourly wage from $8/hour to: $8.40/hour $8.80/hour $9.00/hour $9.40/hour

Where did the numbers come from for this part? And the membership fee will be equal to the consumer surplus, that will be: 5$200-$349.25=$4,851

The aggregate demand for a cup of coffee in Chicago for each day is given by q = 4,000 - 500 p, where p is the price of a cup of coffee. If the price is $4, then the market marginal revenue is