2. Below is a tabular data of price and quantity demand and quantity supply for banana que. Qd Qs 10 40 20 15 30 30 20 20 40 25 10 50 10 50 Using the appropriate method for the given data set, derive the following d) compute for the producer's surplus then graph e) if the price changes from P15 to P17, how much is the change in consumer's and producer's su f) what is the economic surplus? Show your solution e) if government imposed tax of P2 per unit of product in the supply side, what is the new price w and new equilibrium quantity with tax?

2. Below is a tabular data of price and quantity demand and quantity supply for banana que. Qd Qs 10 40 20 15 30 30 20 20 40 25 10 50 10 50 Using the appropriate method for the given data set, derive the following d) compute for the producer's surplus then graph e) if the price changes from P15 to P17, how much is the change in consumer's and producer's su f) what is the economic surplus? Show your solution e) if government imposed tax of P2 per unit of product in the supply side, what is the new price w and new equilibrium quantity with tax?

Microeconomics

13th Edition

ISBN:9781337617406

Author:Roger A. Arnold

Publisher:Roger A. Arnold

Chapter6: Elasticity

Section: Chapter Questions

Problem 11QP: Suppose you learned that the price elasticity of demand for wheat is 0.7 between the current price...

See similar textbooks

Similar questions

Using the midpoint formula for calculating the elasticity of supply, if the price of a good rose from $95 to $105, what would be the elasticity of supply if the quantity supplied changed from a. 38 to 42? b. 78 to 82? c. 54 to 66?
Suppose you learned that the price elasticity of demand for wheat is 0.7 between the current price for wheat and a price 2 higher per bushel. Do you think that farmers collectively would try to reduce the supply of wheat and drive the price up 2 higher per bushel? Explain your answer. Assuming that they would try to reduce supply, what problems might they have in actually doing so?
What is consumer surplus? How is it illustrated on a demand and supply diagram?
What is the relationship between total surplus and economic efficiency?
What is the price elasticity of supply? Can you explain it in your own words?
What is the difference between the demand and the quantity demanded of a product, say milk? Explain in words and show the difference on a graph with a demand curve for milk.
Suppose the cross-price elasticity of apples with respect to the price of oranges is 0.4, and the price of oranges falls by 3. What will happen to the demand for apples?
Describe the general appearance of a demand or a supply curve with infinite elasticity.
Under which circumstances does line tax burden fall entirely on consumers?