1. Suppose that other things are constant, Thailand's Department of Commerce (TDC) estimate the models of market demand and supply equations of premier chicken (local) as shown below: Qd=-120p +16000 Qs=80p-4000 (a) Assume that the premier chicken market is in equilibrium, calculate market price and market quantity of premium chicken in Thailand (b) Based on the outcomes in (a), now suppose TDC impose a price floor of 110 Baht per unit on market of the premium chicken. Analyzes the impacts of the policy on the market price and quantity: i.e. the market price goes up or down from what to what and the market quantity goes up or down from what to what, and any shortage or surplus in the market, if any, how much? (c) Given the results in (b), calculate the price elasticity of demand for the premium chicken. Is the demand elastic, inelastic, or else?

1. Suppose that other things are constant, Thailand's Department of Commerce (TDC) estimate the models of market demand and supply equations of premier chicken (local) as shown below: Qd=-120p +16000 Qs=80p-4000 (a) Assume that the premier chicken market is in equilibrium, calculate market price and market quantity of premium chicken in Thailand (b) Based on the outcomes in (a), now suppose TDC impose a price floor of 110 Baht per unit on market of the premium chicken. Analyzes the impacts of the policy on the market price and quantity: i.e. the market price goes up or down from what to what and the market quantity goes up or down from what to what, and any shortage or surplus in the market, if any, how much? (c) Given the results in (b), calculate the price elasticity of demand for the premium chicken. Is the demand elastic, inelastic, or else?

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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please answer part d
S S p' p* D Y* X' X* →数量 M The supply function and demand function of a certain agricultural product are as follows: S=2p- 40, D=-2p+120. p is the unit price. Let's assume that the home country is a small country. The international price of the product is P*=25. The government then decides to impose restrictions on the import quantity of this product and the limited amount is ='-' (see the graph). In an open economy situation, when M=40, please answer questions 15-18.15. Please calculate the consumer surplus of this country. 16. Please calculate the producer surplus of this country. 17. Please calculate the total surplus of this country. 18. Please calculate the deadweight loss of this country.
13) If the demand for a good is given by: Q = 3Pt-1-13 Where Q is quantity andP is the price of the commodity. The price is flexible to ensure that the market always clears. QP = 52 - 2Pt a) What is the long term equilibrium price and quantity? b) What is the time path of price c) Suppose now due to a temporal disturbance I the neighboring country, government export 10 units of the commodity, effectively reducing the quantity available on the domestic ,market by 10 What will be the price of the commodity in this initial period? How much output will be produced next year and what will be selling price? i. ii. iii. 3/4 Will the price converge to its long run equilibrium after this disturbance?
Suppose the Canadian demand for and the Japanese supply of cars to Canada is shown in the table below (quantities in thousands). Quantity Supplied (before tariff) Quantity supplied (after tariff) Price ($) 13,000 14,000 15,000 16,000 17,000 18,000 19,000 20,000 Quantity Demanded 170 150 130 110 90 70 50 30 50 70 90 110 130 150 170 190 a) The present equilibrium price is $ and quantity is b) Suppose that the Canadian government imposes a $2,000 per car tariff on imported Japanese cars. Show the new supply in the last column above. thousand. thousand. c) The new equilibrium price is $ and quantity is d) The total revenue received by the government will be $ e) Assume, instead, that the government imposes an import quota of 90,000 cars. The new equilibrium price is $ quantity is thousand. f) Does the government now receive any revenue? No million. and
Parts B and C
Demand conditions in the market change. So, now the equation system describing (in inverse form) demand and supply in this competitive market is: p = 52 - 0.5 q, p = 2 + 0.1 q. Determine this market's equilibrium quantity q* (in units of the commodity).
Given- Qd=1000−25pQs=−200+5p A)What is the equilibrium price and quantity B)Graph these functions. Show where equilibrium price and quantity are. Show x and y intercepts C)What is the new equilibrium price if there is 5 peso tax per unit? D)What is the new equilibrium if there is a 3 peso subsidy per unit? (no tax applied here) E)Explain the welfare effects of taxes and subsidies based on equilibrium quantities and prices.
I) The demand for petroleum is given by QD=85 − 0.4? where Q Dis the quantity demanded in thousands of barrels per day and P is the price per barrel in dollars. The supply of petroleum is given by QS=55+0.6?. Calculate the equilibrium price and quantity in this market. II) In the context of the problem in part (i), calculate the demand and supply for petroleum if the market price is $15 per barrel. What problem exists in the economy?
(a) Find the value of x, for which equilibrium ocurs and the corresponding equilibrium price pe (b) Sketch the graphs of the supply and demand curves, p = Sx) and p = D(x), on the same graph. (c) For what values of x is there a market shortage? A market surplus? 30. S(x) = 4x + 200 and D(x) - - 3x + 480
By equating the Demand Curve ??? = 24 − 2 ?? and Supply Curve ??? = 4?? equations;(a) Determine the equilibrium price and equilibrium quantity.(b) Also verify your answers.
Answer the c and d options
Refer to Example 2.10, which analyzes the effects of price controls on natural gas. Recall that the free-market wholesale price of natural gas (PG) is $6.40 per mcf (thousand cubic feet), the average price of crude oil (Po) is $50 per barrel, and production and consumption of gas (Q) are 23 Tcf (trillion cubic feet). Suppose the price elasticity of supply of natural gas is 0.20, the cross-price elasticity of supply of natural gas with respect to the price of oil is 0.12, the price elasticity of demand for natural gas is -0.60, and the cross-price elasticity of demand for natural gas with respect to the price of oil is 1.25. If so, then the linear supply curve for natural gas is OA. Q=1.346-1.638PG +0.055PO B. Q=12.056+0.368PG -0.495PO- O C. Q=16.296 +0.495P + 1.638Po O D. Q=10.562 +1.066PG-0.327Po O E. Q=15.648+0.719P+0.055Po