Suppose that the market demand for coffee is Pd = 15 – Qd and the market supply is Ps = Qs – 5. What is the equilibrium price and quantity for coffee? Suppose that the government imposes a tax of $1 per unit to reduce coffee consumption and raise government revenues. What will be the new equilibrium quantity? What price will the buyer pay? What price will the seller receive?
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Suppose that the market demand for coffee is Pd = 15 – Qd and the market supply is Ps = Qs – 5. What is the
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- Find the equilibrium price and quantity for a product that has the following supply and demand curves, where p is the price in 100's of dollars and q is quantities in 1,000's of units demand: 1/3q + 1/3p - 4=0 Supply: q-p-2=0 If the product is currently priced at $400, what is the quantity supplied and the quantity demanded? Is there a surplus (More supplied than demanded) or a shortage (More demanded than supplied)Beachfront resorts have an inelastic supply, and automobiles have an elastic supply. Suppose that a rise in population doubles the demand for both products (that is, the quantity demanded at each price is twice what it was). What happens to the equilibrium price and quantity in each market? Which product experiences a larger change in price?Suppose that the market demand for 32-oz. wide mouth Nalgene bottles is Q = 50,000p^-1.076, where Q is the quantity of bottles per week and p is the price per bottle. The market supply is Q = 0.01p^7.208. What is the equilibrium price and quantity
- The demand and supply schedules for gatorade is as follows: Price (Gallons) Quantity Supplied $90 888888 80 70 60 50 40 Quantity Demanded 20 88888 25 30 35 40 55 65 339*** 55 45 35 25 15 What is the equilibrium price of gatorade? What is the equilibrium quantity? The city of Fayetteville is worried about the effectiveness of gatorade in thirst quenching young adults. They set a price floor $20 above equilibrium. How much gatorade is sold? in? Thirsty young adults seekers protest to the decision so the city imposes a price calling $10 lower than the price floor from the previous question. How much gatorade is sold? What effect does this resultThe price-demand equation for a particular flashlight is given by p = 118 - 0.002x, where x is the number of flashlights demanded when the price is p dollars each. The flashlight manufacturers will produce no flashlights if the price is $79 or less, and they will market 5,500 flashlights when the price is $101 per flashlight. (Assume the price-supply equation is linear.) (a) Find the consumers' surplus for this commodity. $ (b) Find the producers' surplus for this commodity. $Scenario 1: As part of an international trade agreement, the Oman government reduces the tax on imported coffee. Will this affect the supply or the demand for coffee? Why? Which determinant of demand or supply is being affected? Explain. Show graphically the effect of changes in demand or supply. How will this change the equilibrium price and quantity of coffee? Explain your reasoning.
- The rent control agency of New York City has found that aggregate demand is Q = 160 - 8P. Quantity is measured in tens of thousands of apartments. Price, the average monthly rent, is measured in hundreds of dollars. The aggregate supply is Q = 70 + 7P. a) What is an equilibrium price of rental apartment? b) Suppose the agency sets a maximum monthly rent to $ 300, are there excess demand or excess supply of apartments? If so, by what amount? Please show your work with an explanation. Suppose the agency bows to the wishes of the board and sets a rental of $900 per month on all apartments to allow landlords a "fair" rate of return. If 50% of any long - run increases in apartment offerings come from new construction, how many apartments are constructed?Assuming an increase in Demant and decrease in Supply, which of the following statements is TRUE? The price of the good will decrease. The quantity of the good will definitely decrease. The price of this good will definitely increase. There will be a permanent shortage of this good. The new equilibrium quantity may increase, decrease, or stay the same. A surplus of this good will result from these changes in Supply and Demand. What new equiLibrium quantity will result depends on the relative magnitude of the changes and the shapes of the Demand and Supply curves. We cannot determine what will happen to price.1) Consider the following demand and supply equations for sugar: Qd=1,000-1,000PQd=1,000-1,000P Qs=800+1,000PQS=800+1,000P where PP is the price of sugar per pound and QQ is the quantity of sugar in thousands of pounds. a) What are the equilibrium price and quantity for sugar? b) Suppose the government subsidizes sugar production by placing a price floor of $0.20 per pound. What is the relationship between the quantity supplied and quantity demanded for sugar?
- If a price ceiling of $7 is set, the quantity of soft drink to be exchanged will be 3. When a price ceiling is set below the equilibrium price, quantity demanded will exceed quantity supplied, and excess demand or shortages will result.Consider two markets: the market for coffee and the market for hot cocoa. The initial equilibrium for both markets is the same, the equilibrium price is $6.50$6.50, and the equilibrium quantity is 39.039.0. When the price is $9.75$9.75, the quantity supplied of coffee is 71.071.0 and the quantity supplied of hot cocoa is 105.0105.0. For simplicity of analysis, the demand for both goods is the same. Using the midpoint formula, calculate the elasticity of supply for hot cocoa. Please round to two decimal places. Supply in the market for coffee is more elastic than supply in the market for hot cocoa. There is not enough information to tell which has a higher elasticity. the same elasticity as supply in the market for hot cocoa. less elastic than supply in the market for hot cocoa.1) What is the equilibrium price and quantity? 2) What price level will create a shortage of 40 units? 3) What price level will create a surplus of 40 units? 4) Using the midpoint formula, what is the price elasticity of demand if the price changes $1.00 to $1.10? 5) Using the midpoint formula, what is the price elasticity of demand if the price changes $1.10 to $1.50? 6) If a price floor is established at $1.30, a (shortage, surplus, neither, SELECT ONE will develop). If you selected a shortage ot surplus, what will be the quantitative imbalance (number)? 7) If a price floor is established at $1.00, a (shortage, surplus, neither, SELECT ONE will develop). If you selected a shortage ot surplus, what will be the quantitative imbalance (number)? 8) If a price ceiling is established at $0.90, a (shortage, surplus, neither, SELECT ONE will develop). If you selected a shortage ot surplus, what will be the quantitative imbalance (number)? 9) If a price ceiling is established at $1.30, a…