mpetitive and initially in equilibrium at a price of p₂ and a quantity of Q₂. w suppose the government applies a price ceiling of p₁. Compared with the market-clearing equilib sumer surplus would A. increase by areas B and F. B. increase by area B. C. increase by area C. D. increase by area C and decrease by area E. E. decrease by area E.
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- Consider the market for some product X that is represented in the accompanying demand-and-supply diagram. a. Calculate the total economic surplus in this market at the free-market equilibrium price and quantity The total economic surplus is $ 120 per day (Round your response to the nearest cent as needed) b. Calculate the total economic surplus in this market when a price ceiling at $7 is in effect The total economic surplus is $90 per day. (Round your response to the nearest cent as needed) c. After imposition of the price ceiling at $7, how many units of this good are no longer being produced and consumed per day compared to the free-market equilibrium? unit(s) of this good are no longer being produced and consumed per day compared to the free-market equilibrium (Round your response to the nearest whole number as needed) Price ($) 19.00 17.00 15.00 13.00- 11.00- 9.00- 7.00- 5.00 3.00- 1.00- 0 10 15 20 25 Quantity (units per day) 30 S D 35 GSuppose that last year the equilibrium price and the quantity of good X were $10 and 5 million pounds. Because of strong demand this year, the equilibrium price and the quantity of good X are $12 and 7 million pounds, respectively. Assuming that the supply curve of good X is linear, what happened to producer surplus in the market? A B Producer surplus increased from $12.5 million to $49 million. Producer surplus increased from $12.5 million to $24.5 million. Producer surplus increased from $3 million to $7 million. Producer surplus increased from $4.2 million to $5.6 million. C DSuppose that the smart-phone market has the demand equation of P = 1,200 – 3.5Q° and the supply equation of P = 450 + 2.5Q°. a). Find the equilibrium-price and equilibriu-quantity for this market? b. Draw a graph to show this market and compute for consumer surplus, producer surplus and market surplus
- Consider the market for some product X that is represented in the accompanying demand-and-supply diagram. a. Calculate the total economic surplus in this market at the free-market equilibrium price and quantity. The total economic surplus is $ per day. (Round your response to the nearest cent as needed.) b. Calculate the total economic surplus in this market when a price ceiling at $14 is in effect. The total economic surplus is $ per day. (Round your response to the nearest cent as needed.) c. After imposition of the price ceiling at $14, how many units of this good are no longer being produced and consumed per day compared to the free-market equilibrium? unit(s) of this good are no longer being produced and consumed per day compared to the free-market equilibrium. (Round your response to the nearest whole number as needed.) d. Calculate the deadweight loss that results from the imposition of the price ceiling at $14. Price ($) 38.00 34.00- 30.00- 26.00+ 22.00- 18.00- 14.00- 10.00-…Price PO F E D A QO C B Supply Demand Quantity 25. Refer to the graph above. When quantity supplied equals quantity demanded, consumer surplus is: A) area A. B) area F. C) area A plus area F. D) area B plus area C.Suppose that the smart-phone market has the demand equation of P = 1,200 - 3.5Q and the supply equation of P = 450 + 2.5Q°. a. Find the equilibrium-price and equilibrium-quantity for this market?b.Draw a graph to show this market and compute for consumer surplus, producer surplus and market surplus
- Consider the market for some product X that is represented in the accompanying demand-and-supply diagram. a. Calculate the total economic surplus in this market at the free-market equilibrium price and quantity. The total economic surplus is $280 per day. (Round your response to the nearest cent as needed.) b. Calculate the total economic surplus in this market when a price ceiling at $21 is in effect. The total economic surplus is $ per day. (Round your response to the nearest cent as needed.) c. After imposition of the price ceiling at $21, how many units of this good are no longer being produced and consumed per day compared to the free-market equilibrium? unit(s) of this good are no longer being produced and consumed per day compared to the free-market equilibrium. (Round your response to the nearest whole number as needed.) d. Calculate the deadweight loss that results from the imposition of the price ceiling at $21. per day. The deadweight loss that results from the imposition of…Suppose the demand and the supply for lumber (harvested wood processed in a sawmill) used for construction in Australia are given byQD =100 – 2PQS = 1/2PAssume also that the market is perfectly competitive. the government introduces a subsidy of s=5 per unit of lumber transacted in the market. Calculate the new equilibrium quantity and the price paid by consumers and received by producers.9. Given the subsidy, calculate and illustrate in a graph the consumer surplus, producer surplus and subsidy expenditure.10. Calculate the deadweight loss caused by the subsidy and illustrate it in a graph. 11. Who benefits more from the subsidy, consumers or producers? Why?Refer to graph below to answer the following questions a. Identify the areas that represent consumers’ surplus at the equilibrium price of PE.b. Identify the areas that represent consumers’ surplus if there is a price ceiling of Pc. c. Identify the areas that represent deadweight loss due to a price ceiling set at Pc.
- The following figure shows the effect of a price ceiling in the market for yams. The market was initially in equilibrium at price P2 and quantity B. Price of yams 1. LFP2 2. LEP3 3. LEJP2 4. LEIP₁ OLEJP2 LEP3 O LEIP1 P3 22 O LEIP1 P2 P1 M O [I]i E A F The aggregate consumer surplus after a price ceiling is set at P₁ is H B NC S Quantity of yamsIn Figure 1, suppose the marginal value for gasoline falls by $6 for every quantity demanded for all gas stations in the market. After the changes, assume that the government enacts a price ceiling of $2. What will happen in the market? A) Quantity supplied will equal quantity demanded.B) There will be a surplus of 1 gallon.C) There will be a shortage of 3 gallons.D) There will be a surplus of 2 gallons.E) There will be a shortage of 4 gallons.Consider the inverse demand curve: p= 80 – 1Q. Assume the market price is $10.00. Calculate consumer surplus at the equilibrium market price and quantity. Consumer surplus (CS) is $. (Enter your response rounded to two decimal places.) 21 étv MacBook Air DII DD F1 F2 F3 F4 F5 F6 F8 F9 F7 #3 2$ & 2 3 4 7 8 E Y К つ く6 w/