Consider each scenario independently. In each of the following cases tell me, using verbal and graphical analysis (g) A tax on gun buyers. (h) A binding price floor on guns.
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Consider each scenario independently. In each of the following cases tell me, using verbal and graphical
analysis
(g) A tax on gun buyers.
(h) A binding
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- (a) Determine the equilibrium price and quantity.(b) Sketch the demand and supply functions on the same graph. Label theaxes and the intercepts clearly.In this problem, p is in dollars and q is the number of units.Suppose that the demand for a product is given by (p + 7) q + 6 = 1120. (a) Find the elasticity when p = $33. (Round your answer to two decimal places.)(b) Tell what type of elasticity this is. Demand is elastic.Demand is inelastic. Demand is unitary. (c) How would a price increase affect revenue? An increase in price increases revenue. An increase in price decreases revenue. Revenue is unaffected by price.Which of the following is the correct definition of price elasticity of demand? (a) The percentage change in the quantity demanded divided by the percentage in income. (b) The percentage change in price of a good divided by the percentage change in the quantity demanded of that good. (c) The percentage change in income divided by the percentage change in the quantity demanded. (d) The percentage change in the quantity demanded of a good divided by the percentage change in the price of that good.
- The supply and demand model for 2lb bags of oranges can be represented by: Ps = 8 + 2Qs Pd = 15 - 1.5Qd The government imposes a price floor of $6/ bag What would be the consequences? Group of answer choices It would immediately benefit only consumers It would immediately benefit onlyproducers There would be no change in the market It would immediately benefit both producers and consumers There would be no legal trade for this productConsider the market for minivans. Indicate the impact if any on demand, supply, price and quantity: (a) People decide to have more children. (b) A strike by steelworkers raises steel prices. (c) Engineers develop new automated machinery for the production of minivans.What is an alternative method of solving the price gouging of masks?. use diagram to support.
- Montresor Fortunato's PED for amontillado (a pale dry sherry) is known to be 1.78 when price is measured in dollars and quantity is measured in bottles (32 oz.). What is his PED for this product if price is measured in cents and quantity in ounces?A recent hot issue in Ghana is energy. Suppose the demand for energy is described by Q=50-0.5P and the supply of energy by Q=P-10.(a) Graph the supply and demand curves carefully. Determine the equilibrium price and quantity of energy.(b) Some lawmakers decide that the problem with Ghana is that the price of energy is too high. They propose a bill that would set a price limit of $30 per unit of energy. If enacted, what will be the effect of this law on the quantity of energy supplied and demanded? Is the market on equilibrium? Explain. If not, calculate the shortage/surplus that results.(c) Other lawmakers decide that energy prices are too low and are considering a tax on energy to encourage conservation. What will be the effect on equilibrium price and quantity of a $20 per unit tax on energy, if the tax is collected from suppliers? Show this on the original supply and demand diagram as well.(d) Using the results from part (c) calculate the economic price incidence for suppliers and…Solve and analyze the following problems. Make sure all steps are properly justified. Correctly uses mathematical notation or terminology. Interpret the solution in the context of the problem. Suppose the supply and demand equations for a logo sweatshirt in a particular week are given by the following equations:p = 0.20q + 25 (supply)p = 55 - 0.10q (demand)Find the equilibrium price and quantity. Prepare a graph of both equations and determine what each region means.
- V surplus is the difference between the highest price a consumer is willing to and the price the consumer actually pays. This component of economic surplus is illustrated in the diagram to the right by area Do Quantity (per time period)Tutorial Exercise Worldwide annual sales of smartphones in over a 5 year period were projected to be approximately q = −10p + 4,540 million phones at a selling price of $p per phone. (a) Obtain a formula for the price elasticity of demand E. (b) In one particular year the actual selling price was $277 per phone. What was the corresponding price elasticity of demand? Interpret your answer. (c) Use your formula for E to determine the selling price that would have resulted in the largest annual revenue. What, to the nearest $10 million, would have been the resulting annual revenue? Step 1 (a)Obtain a formula for the price elasticity of demand E. Recall that the price elasticity of demand E is the percentage rate of decrease of demand divided by the percentage increase of price, given by the formula. E = − dq dp · p q We are already given the formula q = −10p + 4,540 for the demand of smartphones (in millions). First, we find the derivative…The demand and supply of some good are as follows: Qd = 3,000 - 20P Qs = 1,000 + 5P (a) Calculate the equilibrium price and the equilibrium quantity. (b) Calculate the consumer surplus at the equilibrium price and quantity. (c) Calculate the price elasticity of demand (at the equilibrium values).