Sharp Inc., a wholly Ghanaian owned company specializes in the production of handsanitizers branded as Quin. The company has branches in all the regions in Ghana with itshead office located at Cape Coast. It employs 1,200 people and pays an average of GH¢550.00 as income tax to the government of Ghana on a monthly basis. Suppose that seventhousand, eight hundred and twenty (7,820) units of Quin are produced and supplied by SharpInc. but the quantity demanded for Quin is eight thousand (8,000) units. Ceteris Paribus, aGH¢ 20.00 change in the price of Quin results in a change in quantity demanded for andsupplied of 4 and 5 units, respectively. [Hint: change in X due to change in Y is given as Ax].Given the above information:a) Determine the equilibrium price and equilibrium quantities of Quin.b)Suppose the Government of Ghana in the wake of the COVID-19 pandemic grants asubsidy of GHs 4.50 on each Quin produced. Compute the new equilibrium price andquantities of Quin.c)Sketch your solution to a) and b) on a graph (graph sheet not needed).d) Explain your solution to c).e) What is the share of subsidy between Sharp Inc. and the consumer?f) Infer the elasticity of demand for Quin from your solution to (e).g) How much revenue does the government lose from the subsidy grant?

The equilibrium price and quantity are determined by the market forces of demand and supply. The…

a) Determine the equilibrium price and equilibrium quantities of Quin. b) Suppose the Government of Ghana in the wake of the COVID-19 pandemic grants a subsidy of GHs 4.50 on each Quin produced. Compute the new equilibrium price and quantities of Quin. c) Sketch your solution to a) and b) on a graph (graph sheet not needed).

a) Determine the equilibrium price and equilibrium quantities of Quin. b) Suppose the Government of Ghana in the wake of the COVID-19 pandemic grants a subsidy of GHs 4.50 on each Quin produced. Compute the new equilibrium price and quantities of Quin. c) Sketch your solution to a) and b) on a graph (graph sheet not needed).

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Sharp Inc., a wholly Ghanaian owned company specializes in the production of hand sanitizers branded as Quin. The company has branches in all the regions in Ghana with its head office located at Cape Coast. It employs 1,200 people and pays an average of GHȼ 550.00 as income tax to the government of Ghana on a monthly basis. Suppose that seven thousand, eight hundred and twenty (7,820) units of Quin are produced and supplied by Sharp Inc. but the quantity demanded for Quin is eight thousand (8,000) units. Ceteris Paribus, a GHȼ 20.00 change in the price of Quin results in a change in quantity demanded for and supplied of 4 and 5 units, respectively. [Hint: change in X due to change in Y is given as ]. Given the above information: a) Determine the equilibrium price and equilibrium quantities of Quin . b) Suppose the Government of Ghana in the wake of the COVID-19 pandemic grants a subsidy of GHs 4.50 on each Quin produced. Compute the new equilibrium price and quantities of Quin. c)…
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Question Eleven Sharp Inc., a wholly Ghanaian owned company specializes in the production of hand sanitizers branded as Quin. The company has branches in all the regions in Ghana with its head office located at Cape Coast. It employs 1,200 people and pays an average of GH¢ 550.00 as income tax to the govemment of Ghana on a monthly basis. Suppose that seven thousand, eight hundred and twenty (7,820) units of Quin are produced and supplied by Sharp Inc. but the quantity demanded for Quin is eight thousand (8,000) units. Ceteris Paribus, a GH¢ 20.00 change in the price of Quin results in a change in quantity demanded for and supplied of 4 and 5 units, Ay respectively. [Hint: change in X due to change in Y is given as ax ]. Given the above information: a) Determine the equilibrium price and equilibrium quantities of Quin. b) Suppose the Govemment of Ghana in the wake of the COVID-19 pandemic grants a subsidy of GHs 4.50 on each Quin produced. Compute the new equilibrium price and…
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