In the market for used cars, the demand and supply equations are given by Qd= 12,000 - 0.4P and Qs= 0.1P+ 5,000, where P is the price per car and Q measures the quantity of cars. What is the size of the deadweight loss at a price floor of 15,000?
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- Given the supply - demand function of printers in Vietnam as follows:Sx = -20000 + 250PDx = 160000-350PKnowing that Vietnam is considered a small country, the price of a printer on the world market is $120/piece.a. If the Government of Vietnam levies an import tax of 25% on this item, calculate the loss to domestic consumers. How much is the import tax revenue from the Vietnamese government's printer products in this case?b. Due to the commitment to integration, the Government of Vietnam applies an import tax rate of 12.5% for printers, calculate the change in the import tax revenue of the Government of Vietnam.c. To ensure that there are no more imports, what is the minimum tax rate that the Vietnamese government should set?Suppose that the figure given below depicts the demand for grape oll, which can be purchased in any quantities and sold at any price. Price per litre 6 5 A 3 2 1 0 D 100 200 300 400 500 600 700 800 900 1000 Quantity per period a) What is the total consumer surplus if the price per litre is $3.0? (Hint: Area of a triangle?) Total consumer surplus: $ b) What is the total consumer surplus if the price per litre is $1.0? Total consumer surplus: $Price/Quart $1.75 $1.65 $1.60 A Quarts/Week 2 4 Customers B Quarts/Week 9 11 12 Can't tell; insufficient information 16 25 22 с Quarts/Week 5 7 8 Individual demand schedules for three customers from the local H-E-B store in the purchase of ice cream are given above. What is the quantity demanded of ice cream at a price of $1.60 assuming that the only consumers in this market are customers A, B, and C?
- Consideracompetitivemarketwheremarketdemandandthemarketsup- ply are given, respectively, byQD =1000−100P and QS =100P a)Findthecompetitiveequilibriumprice,quantity,andproducersurplus. (b) Suppose the government wants to help the consumers by imposing a price ceiling of Pc = 4. Find the market equilibrium price, quantity, and producer surplus. (c) Suppose now the producers are complaining, and the government de- cides to keep the price ceiling policy, but at the same time, the government will give a subsidy of s per unit to the producers. What is value of s that can make the producers as well off as before imposing the price ceiling (that is, producer surplus equals to the value in part (a))? Please express final numerical answers in decimal formatA company is considering building a bridge across ariver. The bridge would cost $2 million to build andnothing to maintain. The following table shows thecompany’s anticipated demand over the lifetime ofthe bridge:Price per CrossingNumber of Crossings,in Thousands$8 07 1006 2005 3004 4003 5002 6001 7000 800a. If the company were to build the bridge, whatwould be its profit-maximizing price? Would thatlevel of output be efficient? Why or why not?b. If the company is interested in maximizing profit,should it build the bridge? What would be itsprofit or loss?c. If the government were to build the bridge, whatprice should it charge?d. Should the government build the bridge?Explain.Consider the market for taxis within Australia. Assume that the new regulation cancels the earlier requirement for all taxis to have a special license. (a)Whatwouldhappentothesupplyoftaxirides?Assumingthatcustomersdonotcareaboutthe licenses, what would happen to the demand for taxi rides? (b)Whatwouldhappentotheequilibriumpriceoftaxirides?Whatwouldhappentotheequilibrium quantity of taxi rides? Show your answers in a diagram and explain.
- A firm that electroplates inexpensive jewelry produces toxic waste, some of which ends up in a nearby river because of pipe leakage. If state regulators notice the problem and order the firm to make repairs and improve its monitoring processes, the supply curve will shift from S1 to S2.What region of the graph represents the deadweight loss that is eliminated by the change? Use the area tool to outline the region.Question One. A market consists of 5000 identical households and 100 identical producers. The demand a. equation for a typical household over a week is given by C = 30 - 2p + 0.001PCD-0.028P. Where i 1, 2, 3..5000 And the supply equation for a typical firm over a week I given by = -50 + 10p- 0.5PL-0.1P Where j 1,2,3...,100 i. Write the market demand and supply equations ii. Assume a households' per capita disposable income PCDI is $8,000. Further assume that Pe, PL, and PE are $20, $100, and $80, respectively. Determine the market equilibrium price and quantity. iii. What would be the equilibrium price and quantity if the households' per capita income increased to $8,500, ceteris paribus? iv. Assume that due to inflation, the cost of labor increases by 30 % and price of energy by 40 %. What is the new market equilibrium price and quantity? Measure the impact of the change in prices of labor and energy by comparing the new equilibrium values with values (You will be doing comparative…The table shows the demand and supply schedules for on-campus housing. If the college puts a rent ceiling on rooms of $650 a month, rent is $ number of rooms rented is. The on-campus housing market is V efficient inefficient and the $ Rent (dollars per month) 500 550 600 650 700 750 Quantity demanded 2,500 2,250 2,000 1,750 1,500 1,250 (rooms) Quantity supplied 2,250 2,250 2,250 2,250 2,250 2,250 Next
- The demand and supply for taxi cab Rides are given as follows; QD = 600 + pO - pR and QS = 200 – pO + pR Where pR is the price of a taxi ride, and pO is the price of oil. As you see, both the demand and the supply of taxi cab rides are affected by the price of oil, pO. Assume that pO < 3. (a) For a given pO, derive the equilibrium price and quantity for the taxi rides (both the price and/or quantity might depend on pO, naturally). Does the equilibrium price for rides increase/decrease/stay the same as the price oil increases? Does the equilibrium quantity of rides increase/decrease/stay the same as the price oil increases? (b) (Conceptually rather hard!) Consider the equilibrium above, as a function of the given oil price, pO. As the oil gets more expensive, what happens to the price elasticity of demand AT THE EQUILIBRIUM point?Considermarketforagoodcharacterizedbythefollowinginverse demand and supply functions: PX = 10 − 2QX and PX = 2 + 2QX.a. Compute the surplus received by consumers and producers.b. Now suppose all manufacturers of this good are to pay a lump tax of $0.10that will be used by the government regulators to defray some of the environmental cost imposed by this good’s production. What will be the new surplus received by consumers and producers?c. Based on your results in part ‘b’ above, how will you evaluate the impact of this tax policy on the society? ExplainThe diagram below shows the market for rental apartments. Suppose the government imposes a rent control law that sets the maximum monthly rent at $400. a Identify the quantity of apartments demanded and the quantity of apartiments supplied at a controled rent.of $400 Instructions: Use the tool provided 'Op' to indicate the quantty demanded when there is a controted rental pnce of $400 Then use the tool provided Qs'to indicate the quantity supplied when there is a controled rental price of $400 $1600 Toole eBoo $1,400 Suoply $1.200 .000 S800 $600 $400 Demand S200 50 100 150 200 250 300 350 400 450 500 Quantity of housing (unita) Suppose that everyone who had a lease for a rent-control unit sublet that unit in a shadow market at the highest price they could receive b. In this case, the highest price they could charge is a rental price of (Cick to select)