Assume that the demand and the supply in a market are represented by the following equations: QD=200-5P QS=5P-10 The market equilibrium in this case will be: Price = ; Quantity = If the government were to introduce an excise tax of $2 per unit of output (assessed on the supplier), what would the new equilibrium be? Price : Quantity =
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- Suppose the market demand and supply curves are as given below. In each case, quantity refers to milions of litres of gasoline per month; price is the price per litre (in cents). Pa400 - 240 Supply: P= 160 + 80 Given these demand and supply equations, the equilbrkum price is 220 cents and the equilibrium quantity is 7.5 milion litres. Suppose the government imposes a tax per itre, and as a result the quantity sold is 5.8 million litres. What is the new "consumer price" and what is the new "producer price"? The new price consumers pay is 260.8 cents. (Enter your response rounded to the nearest cent.) The new price producers receive is cents. (Enter your response rounded to the nearest cent.)The weekly supply and demand for cupcakes in a small town are given as OS = 30P- 20 and Q = 124 - 18P, where P is the price of a cupcake and Q is measured in thousands per %3D week. a. Find the equilibrjum price and quantity. b. Calculate the corsumer and producer surplus at the equilibrium price.1 and 2 examine the market for Rmags. The demand for Rmags is given by Q = 12,500-5OOP and the supply by Q =-2500 + 250P. %3D 1) Find the equilibrium price and quantity in this market.
- The demand for gasoline is P= 4 – 0.002Q and the supply is P= 0.4 + 0.004Q, where Pis in dollars and Qis in gallons. Instructions: Round your answer to the nearest penny (2 decimal places). If a tax of $0.8/gallon is placed on petrol, what is the incidence of the tax? Tax incidence to the consumer: $ Tax incidence to the supplier: $ Instructions: Round your answers to the nearest whole number. What is the lost consumer surplus? $1 What is the lost producer surplus? 24suppose the demand and supply equation for eggs in market is: Qd= 100-2p; Qs= 10+40p Complete the given table Graphically show the equilibrium Find PED: for 0.5 to 1.5 and 2.5 to 1.0 What happened to the eggs market if Government increases tax on poultry farm business and on the other hand consumer decreases the consumption of eggs because of reeducation in their income level (show and explain graphically) Price 0.5 1.0 1.5 2.0 2.5 Qd QsQUESTION 18 2 points Save Answ If the demand for commodity X is represented by the equation P = 10 - 0.2Q and supply by the equation P = 2 + 0.2Q. Find the equilibrium quantity (Qe) and equilibrium price (Pe) For the toolbar, press ALT+F10 (PC) or ALT+FN+F10 (Mac). BIUS Paragraph Arial 14px A II
- Suppose you are given the following information: Qs = 100 + 3P Qd = 400 – 2P where Qsis the quantity supplied, Qdis the quantity demanded and P is price. 1. Now suppose that a tax is placed on buyers so that Qd = 400 – (2P + T) where T istaxes. If T = 15, solve for the new equilibrium price and quantity. (Note: You aresolving for the equilibrium price for sellers and buyers)The following questions pertain to analysis of the supply and demand scenario derived from the schedules below: Candy Canes QD QS 20 2. 14 14 21 4 28 Create a graph of the supply and curves from this chart for use in your analysis. 19. What would be the result of a government-imposed price celling orn candy canes set at the price of 1 dollar? O a A surplus of candy canes would occur, and this is evident because of the quantity of candy canes supplied at the price of 1 dollar is much greater than the quantity of candy canes demanded. A shortage of candy canes would occur, and this is evident because the quantity of candy canes d is much greater than the quantity of candy canes supplied. There would be no result. The price ceiling is set above equilibrlum and is therefore not binding. O b ...Consider a market where supply and demand are given by QXS = -18 + Px and Qxd=84 - 2Px. Suppose the government imposes a units consumers do not buy at the floor price of $39 per unit. price floor of $39, and agrees to purchase and discard any and Instructions: Enter your responses rounded to the nearest penny (two decimal places). a. Determine the cost to the government of buying firms' unsold units. $ 585.00✔ b. Compute the lost social welfare (deadweight loss) that stems from the $39 price floor. $ 25.00
- given that Qs = 100+3P and Qd = 400 - 2P Now suppose that a tax is placed on buyers so that Qd = 400 – (2P + T) where T istaxes. If T = 15, solve for the new equilibrium price and quantity. (Note: You aresolving for the equilibrium price for sellers and buyers).price Suppose a product has a supply function qiven by sk) =D P= %3D and a demand function given 16 by Des= p = --x" + 6, where p P is Ahe unit price, and 64 xis Measured in units of a In hundred, Find the Cansumers and producers Surpluses dollars if the market orice is set at epitibrium.The market demand and supply functions for hotel rooms in the City of Montreal areestimated as follows: Demand: P = 500 -0.0005 Q Supply: P =-1500 + 0.002 Q a) Determine the equilibrium price (P) and quantity exchanged (Q) of hotel rooms inthe city. Sketch the demand/supply diagram and indicate all key values. How muchis spent annually on hotel accommodations in the city? The City Council is debating a motion to introduce a hotel tax in the city of $10 perroom per night. The Mayor of the City in a recent press conference assured thehotel operators that the impact of the tax on their operations will be minimal sincethe tax is intended to be paid by tourists, who once they book, have little choiceover not paying the tax. Do you agree with the Mayor's assertion? (Calculate theimpact of the room tax on equilibrium P and Q and support your answer with soundeconomic reasoning). Which is relatively less elastic, the demand or the supply forhotel rooms?
