1) Consider a market where the demand and supply for a particular good is as shown below: P (TL/unit) 12 8 1654321 6 1 2 3 4 5 6 7 8 9 101112 Q(units/day) a. Find the (own-price) elasticity of supply at the price of 5 TL/unit. b. If the government imposed a price ceiling of 3 TL/unit, what would the equilib- rium price and the equilibrium quantity be? What would the consumers' surplus, producers' surplus, and dead-weight loss be under this policy? c. If the government imposed a tax at the rate of 3 TL/unit on the consumer what would the equilibrium price that the consumers face be? What would the equilib- rium price that the producers face be? What is the quantity traded at equilibrium? What is the consumers' surplus, producers' surplus and the dead-weight loss under this policy? d. Is there a government policy that, under this policy the quantity traded, at equilib- rium, would be 7 units/day? If there is such a policy, be specific about the policy. stating all the numerical values required by the policy. If such a policy does not ex- ists, explain why it is not possible to induce a trade of 7 units/day via a government policy.

1) Consider a market where the demand and supply for a particular good is as shown below: P (TL/unit) 12 8 1654321 6 1 2 3 4 5 6 7 8 9 101112 Q(units/day) a. Find the (own-price) elasticity of supply at the price of 5 TL/unit. b. If the government imposed a price ceiling of 3 TL/unit, what would the equilib- rium price and the equilibrium quantity be? What would the consumers' surplus, producers' surplus, and dead-weight loss be under this policy? c. If the government imposed a tax at the rate of 3 TL/unit on the consumer what would the equilibrium price that the consumers face be? What would the equilib- rium price that the producers face be? What is the quantity traded at equilibrium? What is the consumers' surplus, producers' surplus and the dead-weight loss under this policy? d. Is there a government policy that, under this policy the quantity traded, at equilib- rium, would be 7 units/day? If there is such a policy, be specific about the policy. stating all the numerical values required by the policy. If such a policy does not ex- ists, explain why it is not possible to induce a trade of 7 units/day via a government policy.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Related questions

Q: 1. The demand function is Q = 100 - 8p, and the supply function is Q = 30 + 6p. Determine the…

A: When the supply and demand of commodities are equal, a market is said to have attained equilibrium…

Q: Suppose that the market demand and supply for bicycles in Sydney are given as follows: Demand: P =…

A: The equilibrium in any market is determined by the interaction of demand and supply. The government…

Q: Price of X ($) 20 18 16 14 12 10 8 6 4 2 0 1 S1 so 2 3 4 5 6 D Quantity of Good X Maple Electronics…

A: The demand curve is the downward-sloping curve. The supply curve is the upward-sloping curve. The…

Q: 12. A firm uses capital and labour to produce widgets. In the short-run capital is fixed, while…

A: We are going to use single variable optimisation technique to answer this question.

Q: Suppose that the demand and supply functions for a good are given as follows: Demand: Q = 720 – 8P…

A: Demand : Qd=720-8P Supply : Qs=-160+3P Equilibrium: Demand=Supply Qd=Qs 720-8P=-160+3P…

Q: PRICE (Dollars per unit) 350 225 175 50 Region Between X and Y Between W and X For each of the…

A: Price elasticity of demand shows the percentage change in quantity demanded due to a percentage…

Q: Use the price-demand equation below to find E(p), the elasticity of demand. x=f(p)=40,000 - 700p…

A: Step 1: Step 2: Step 3: Step 4:

Q: Price (dollars per bucket) 16 15 14 13 12 10 200 300 400 500 600 700 800 Quantity (buckets) The…

A: Answer: According to the above figure, due to tax the supply curve shifts to the left from S0 to…

Q: lgs Review view Help 5-7.D(x) = 2(x-3)² is the price, in dollars per unit, that consumers will pay…

A: Given that,Price D(x)=2(x-3)2S(x)=(x-4)2+79 where x is the number of goods

Q: Suppose that the market equilibrium price of 48" HDTVs is $400, Pmkt $400, and at Pmkt the price…

A: To determine how the excise tax of $20 per unit affects the prices paid by consumers and received by…

Q: Consider the perfectly competitive spice market. At the equilibrium price, the elasticity of market…

A: Percentage change is used in finance for various purposes, including indicating the percentage…

Q: Refer to the figure below. If the government sets a price ceiling of $6, 18 16 14 12 10 8 6 4 2 2 4…

A: The demand curve is the downward-sloping curve. The supply curve is the upward-sloping curve. The…

Q: 3) Currently 4,000 movie tickets are sold at a price of $ 5 each. The elasticity - price of the…

A: We are going to find the demand function and Price change to answer this question.

Q: Consumers' Surplus The demand function for a certain brand of CD is given by p = −0.01x2 − 0.3x + 19…

A: Consumer surplus is the cost they actually pay against the cost they are willing to pay. Usually,…

Q: Suppose that the demand and supply functions for a good are given as follows: Demand: Qº = 720 – 8P…

A: Given: Demand, Qd=720-8PSuppply, Qs = -160+3P

Q: Which of the following will cause the supply of a product to decrease? a) governent subsidy for the…

A: Here the decrease in supply means the supply curve shifts leftward.

Q: Suppose that the demand and supply functions for a good are given as follows: Demand: Q Supply: O…

A: Elasticity of demand refers to proportionate change in quantity demanded with proportionate change…

Q: Many studies on rats and mice have established that charred meat grilled over hot coals causes…

A: a. Before-tax price:Demand equation: P = 100 - frac{Q}{10}Supply equation: P = 1 + frac{Q}{100}At…

Q: In Hawaii, organic sugar currently sells at $50 per ton, and the quantity sold is 10,000 tons per…

A: Taxes are compulsory financial charges or levies imposed by governments on people, businesses, or…

Q: Attached Question:

A: Given Information: Demand function Qd = 252-4P Supply function Qs = 172 To find out the consumer…

Q: In Example 2.8, we discussed the recent increase in world demand for copper, due in part to China's…

A: Demand shows the relation between P and Q that consumers are willing to buy, assuming all other…

Q: Consider the price-demand equation given by 6, 000 – x p = 1, 200 Find E(p), the elasticity of…

A: The elasticity of demand(E(p)) is calculated as: E(p)=dxdp×px

Q: Given below are the Demand and Supply functions for consumers and suppliers. Supply function: Qs=P…

A: The equilibrium occurs where the demand and supply are equal. The price ceiling leads to deadweight…

Q: Online the timing and tailoring of prices to specific products is the key to successful pricing in…

A: Elastic demand is the state in which demand adjusts in response to a small change in price. Price…

Question

1) Consider a market where the demand and supply for a particular good is as shown below:
P (TL/unit)
210900 7610 32-
12
11
8
5
1 2 3 4 5 6 7 8 9 101112
Q (units/day)
a. Find the (own-price) elasticity of supply at the price of 5 TL/unit.
b. If the government imposed a price ceiling of 3 TL/unit, what would the equilib-
rium price and the equilibrium quantity be? What would the consumers' surplus,
producers' surplus, and dead-weight loss be under this policy?
c. If the government imposed a tax at the rate of 3 TL/unit on the consumer what
would the equilibrium price that the consumers face be? What would the equilib-
rium price that the producers face be? What is the quantity traded at equilibrium?
What is the consumers' surplus, producers' surplus and the dead-weight loss under
this policy?
d. Is there a government policy that, under this policy the quantity traded, at equilib-
rium, would be 7 units/day? If there is such a policy, be specific about the policy
stating all the numerical values required by the policy. If such a policy does not ex-
ists, explain why it is not possible to induce a trade of 7 units/day via a government
policy.

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1: Demand-supply equilibrium:

VIEW

Step 2: Supply elasticity:

VIEW

Step 3: Price ceiling:

VIEW

Step 4: Effect of tax:

VIEW

Step 5: Govt policy:

VIEW

Solution

VIEW

Step by step

Solved in 6 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.

Similar questions

Suppose the own-price elasticity of demand for good X is |ED |= .8 and the own-price elasticity of demand for good Y is |ED |= 1.25. If the ad valorem tax rate on good X is 5%, should the tax rate on good Y be higher or lower? Explain. 2
not use ai please
The demand and supply schedule for coffee are: Price ($ per cup) Quantity Demanded Quantity Supplied $1 130 10 $2 110 20 $3 90 30 $4 70 40 $5 50 50 $6 30 60 $7 10 70 $8 0 80 a) If there is no tax on coffee, what is the price and how much coffee is consumed b) What is the consumer surplus? Show your calculations c) What is the price elasticity of demand when the price goes up from $3 to $4 dollars? Is the demand for coffee elastic or inelastic? Explain.
M8
8
Imagine the scenario: Theaters are open after COVID-19! Your friend is excited to watch a movie in the theaters but she is busy during weekdays when the price is $5.00 during weekday afternoon matinee hours whereas the same movie costs $11 during weekends. Can you explain this difference in ticket prices as a potential economist in terms of Elasticity? Q1 (b) As per the additional/OPTIONAL article HowMuchFansPaidForKobeBryantLastGame, what was the price paid for court side seat? ((ANSWER IN 1 LINE ONLY) Q1 (c) According to the additional/OPTIONAL article "MinimumWageUnemploymentMcdonalds", what effect did the wage increase have on McDonalds employees and Big Mac prices? (EXPLAIN IN 1-2 LINES ONLY.) Edit View Insert Format Tools Table 12pt YParagraph. MacBook Pro F2 02 000 F4 F5 F8 F10 $ 4. # 5 3. 9. 8. E.
1. Demand for grain is given by function Qd=9-4P and supply - by function Qs=2P. The government also entered the market and bought 6 units of the grain. Which equilibrium price will be established in this market and how much grain will be sold? 2. Price elasticity of demand and income elasticity of demand are accordingly -0,4 and 1,1. The changes in price and income accordingly amounted to 12% and -5%. Find the percentage change in quantity demanded. 3. Price elasticity of demand, last sale, last price, and initial price accordingly are -1,5; 20; 10; 40. Find the initial sale.
A market for a certain type of golf clubs has the following supply and demand: QD where p denotes the unit price. 25p —D 4,500 - 20р, (a) Find the number of golf clubs produced and the equilibrium price. What is the consumer and producer surplus? (b) Suppose that a unit tax of nine dollars is levied on the producers of golf clubs. Find the number of golf clubs sold. What is the consumer and producer surplus in this case? ce wa се (c) How is the tax burden shared? cro.com
Suppose that at equilibrium, the price elasticity of demand for wheat is -1.5 and the price elasticity of supply is 0.5. If the government imposes a price ceiling that is 12% below the equilibrium price, this price constraint will lead to: A) A shortage equal to 24% of the equilibrium quantity B) A surplus equal to 24% of the equilibrium quantity C) A shortage equal to 2.4% of the equilibrium quantity D) A surplus equal to 2.4% of the equilibrium quantity
12- 11- Price of Santa hats (5) 9. 2 1 2000 4000 6000 8000 Quantity of Santa hat Supply Demand 10000 Suppose a 3 dollar tax is imposed on the market for Santa hats depicted above. Consumers will then pay a post-tax price of dollars (give a whole number).
thanks
A bakery works out a demand function for its chocolate chip cookies and finds it to be q = D(x) = 846 - 23x, where q is the quantity of cookies sold when the price per cookie, in cents, is x. Use this information to answer parts a) through f). WWE a) Find the elasticity. E(x) = b) At what price is the elasticity of demand equal to 1? ¢ (Round to the nearest cent as needed.) c) At what prices is the elasticity of demand elastic? OA. Greater than 18¢ OB. Prices cannot be elastic in this case OC. Prices are elastic at all values D. Less than 18¢ d) At what prices is the elasticity of demand inelastic? O A. Prices are inelastic at all values OB. Less than 18¢ OC. Greater than 18¢ e) At what price is the revenue a maximum? \[ x= \] (Round to the nearest cent as needed. Use a comma to separate answers as needed.) f) At a price of13∈/per cookie, will a small increase in price cause the total revenue to increase or decrease? Increase Decrease