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- What is the relationship between total surplus and economic efficiency?What is the relationship between quantity Demanded and quantity supplied at equilibrium? What is the relationship when there is a shortage? What is the relationship when them is a surplus?2. Consider a competitive market for which the quan- tities demanded and supplied (per year) at various prices are given as follows: PRICE (DÖLLARS) DEMAND (MILLIONS) SUPPLY (MILLIONS) 60 22 14 80 20 16 100 18 18 120 16 20 a. Calculate the price elasticity of demand when the price is $80 and when the price is $100. b. Calculate the price elasticity of supply when the price is $80 and when the price is $100. c. What are the equilibrium price and quantity? d. Suppose the govemment sets a priceceiling of $80. Will there be a shortage, and if so, how large will it be?
- Suisnou 1o sni .an increase in the producer surplus in the housing market .d O A price ceiling makes it illegal to charge a higher price than the specified price :choose one true O Error O price floor results in a surplus if the floor price is higher than the equilibrium price20 Demand Supply 18 16 14 さ12 10 8. 12 14. 16 20 QUANTITY Which of the following statements is not correct? When the price is 510.quantity supplied equala quantity demanded. DWhen the price is 512.shere is a surplus of 4 units. 0When the price is S16.quantity supplled exceecs ouantity demanded by 1 units. When.the price ls S6 there is a surplus of8units. PRICEOnly typed answer If the demand in a market is Q = 63 – 4P and the supply is Q = -3 + 3P, then what is the equilibrium price (rounded to two decimal places)?
- Only typed answer Use the demand and supply curves below to answer the following question: Demand: P= 20-Q Supply: P=10+Q Suppose now the government places a 2 dollar tax on consumers. Doing so would result in consumers sharing the tax burden with producers. However, consumers would pay _____ dollars of the tax burden.A Define "supply." 9.( The definition of supply is very similar to that of demand. Supply is a schedule which shows the various amounts of a product sellers are at each price in a series of possible prices during a specified period, other things being equal. Supply portrays relationship between ( related either in the table or in the (graph). ) and ( ) to produce and offer for sale ) and ( ), they are (directly, inversely) S Describe and give a reason for the law of supply. The law of supply indicates that producers will produce and sell (more, less ) of their product at a high price than at a low price. This means that there is a positive, negative ) relationship between price and quantity supplied. The basic explanation is that, given product costs, a higher price means greater profits and thus more incentive for business to increase the quantity supplied.11.) In the market for cars, the price elasticity of supply is +1.5, and the price elasticity ofdemand is -0.8. The equilibrium price is $ 30 thousand, and quantity is 120 million.(a) Assuming supply and demand are linear, reconstruct and draw the supply and demandcurves. Label the intercepts.(b) To reduce traffic, the government imposes a $400 tax on cars. What are PB and PS after thetax? What is the new equilibrium quantity? Illustrate them on the same graph.(c) How big is the change in consumer surplus, producer surplus, government revenue, anddeadweight loss?
- QUESTION 5 Annual demand and supply for a Company is given by: QD = 19500 100P, and Qs=-5000+ 100P 1. Find the equilibrium price and quantity? 2. If price are $100, 110, 130, 180 calculate the value of surplus or shortage in supply at each given price level For the toolbar, press ALT+F10 (PC) or ALT+FN+F10 (Mac). BIUS Paragraph Arial 14px QUESTION 6 Click Save and Submit to save and submit. Click Saue All Answers to save all answers.SOLCE FOR D-E ONLYThe Demand curve for a good A is P = - 2Q+200 and the Supply curve is P=Q+10.A. Find the equilibrium Price and Quantity B. What is the level of total expenditure in this market?C. What is the price elasticity of demand at equilibrium? D. If there is a law that prevents you from consuming this good, how much should you be compensated by the government to accept it given the Consumer Surplus (CS)? Calculate.Demand shifts to P = - 2Q+260 due to an increase in the price of another good B from $20 to $25 E. Find the New Equilibrium, and Calculate the new Consumer Surplus and the Cross Price Elasticity of Demand. What type of goods are these?Question 1 2 pts 1. Price elasticity of demand shows how: O To compute the slope of the demand curve. O Responsive the quantity demanded is to a changin in price. O Responsive the quantity demanded is to a change in the price of related goods. Responsive the price is to a change in demand. Next » Not saved Submit Quiz (?) a %23