15) Complete the table below by calculating consumer surplus, producer surplus, and total surplus for various market conditions: a) Calculate these "surpluses" at market equilibrium; b) Calculate these "surpluses" when a quota of four units (Q= 4) is imposed by government; c) Calculate these "surpluses" when a price floor of $9 is imposed by government; and d) Calculate these "surpluses" when a price ceiling of $4 is imposed by government. Calculate the deadweight loss for any of the four market conditions. Supply & Demand Diagram #2 12 11 10 9 8 7 6 5 4 3 2 1 0 0 1 2 3 4 5 6 7 8 9 10 11 12 Market Condition Price Quantity Quantity Demanded Supplied Quantity Consumer Producer Traded Surplus Surplus Total Surplus Deadweight Loss a) Equilibrium b) Quota, Q=4 4 4 4 c) Price floor, P = $9 P $9 d) Price ceiling, $4 P = $4 CONCLUSION: Identify the market condition under which total surplus is maximized. Explain.

15) Complete the table below by calculating consumer surplus, producer surplus, and total surplus for various market conditions: a) Calculate these "surpluses" at market equilibrium; b) Calculate these "surpluses" when a quota of four units (Q= 4) is imposed by government; c) Calculate these "surpluses" when a price floor of $9 is imposed by government; and d) Calculate these "surpluses" when a price ceiling of $4 is imposed by government. Calculate the deadweight loss for any of the four market conditions. Supply & Demand Diagram #2 12 11 10 9 8 7 6 5 4 3 2 1 0 0 1 2 3 4 5 6 7 8 9 10 11 12 Market Condition Price Quantity Quantity Demanded Supplied Quantity Consumer Producer Traded Surplus Surplus Total Surplus Deadweight Loss a) Equilibrium b) Quota, Q=4 4 4 4 c) Price floor, P = $9 P $9 d) Price ceiling, $4 P = $4 CONCLUSION: Identify the market condition under which total surplus is maximized. Explain.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Similar questions

Please answer blank spaces for questions d,e,f
Consider the market for commercial fans. The following graph shows the demand and supply for commercial fans before the government imposes any taxes. First, use the black point (plus symbol) to indicate the equilibrium price and quantity of commercial fans in the absence of a tax. Then use the green point (triangle symbol) to shade the area representing total consumer surplus (CS) at the equilibrium price. Next, use the purple point (diamond symbol) to shade the area representing total producer surplus (PS) at the equilibrium price. Suppose the government imposes an excise tax on commercial fans. The black line on the following graph shows the tax wedge created by a tax of $50 per fan. First, use the tan quadrilateral (dash symbols) to shade the area representing tax revenue. Next, use the green point (triangle symbol) to shade the area representing total consumer surplus after the tax. Then, use the purple point (diamond symbol) to shade the area representing total producer…
Consider the market for mountain bikes. The following graph shows the demand and supply for mountain bikes before the government imposes any taxes. First, use the black point (plus symbol) to indicate the equilibrium price and quantity of mountain bikes in the absence of a tax. Then use the green point (triangle symbol) to shade the area representing total consumer surplus (CS) at the equilibrium price. Next, use the purple point (diamond symbol) to shade the area representing total producer surplus (PS) at the equilibrium price. (screen shot 1) Suppose the government imposes an excise tax on mountain bikes. The black line on the following graph shows the tax wedge created by a tax of $80 per bike. First, use the tan quadrilateral (dash symbols) to shade the area representing tax revenue. Next, use the green point (triangle symbol) to shade the area representing total consumer surplus after the tax. Then, use the purple point (diamond symbol) to shade the area…
Consider a market where demand and supply satisfy the following equations QD = 12 – 2 P, QS = 2P. a) Find the current equilibrium price and quantity. b) What is the total producer surplus if the market is in equilibrium? The government is considering a minimum price policy to increase producer surplus. c) Explain by means of graphs how the introduction of a price floor can increase producer surplus. d) Find the (optimal) price floor that maximizes producer surplus. **if possible, please answer my questions in typing as it's hard for me to read works in hand-written, thanks
In Figure 1, suppose the marginal value for gasoline falls by $6 for every quantity demanded for all gas stations in the market. Next, assume that the government enacts a price ceiling of $2. What is the loss in consumer surplus? A) $6B) $2C) $12D) There is no consumer welfare loss because prices are lower.E) There is not enough information to calculate.
Suppose the equations below represent the market supply and demand for cellular service. QD = 50 – 0.25P QS = 2P – 76 a. Graph the supply and demand curves, and label the equilibrium quantity and price. b. Calculate the amount of Consumer Surplus and Producer Surplus in this market. c. Suppose the government enacts a per-unit tax of $9 for each unit sold. Illustrate the effect of this tax in your graph of the market for cellular service, and calculate the new market price and quantity sold. d. Calculate the amount of deadweight loss associated with this per-unit tax. e. Calculate the share of the tax burden that the sellers bear. f. Briefly explain why there is a relationship between the slopes of the supply and demand curves, and the tax burden on each side of the market.
Analyze the effect of a price ceiling in the market for wheat on equilibrium price and quantity. Will consumers / producers /both benefit because of this price ceiling? Explain using changes in consumer and producer surpluses.
Can you help me with the question below? Refer to Figure 1 for questions 6-11 In Figure 1, S = Market Supply Curve; D = Market Demand Curve. What is consumer surplus at the competitive market equilibrium price and quantity?A) $50B) $40C) $25D) $16E) $8
2) Define and provide an example of the opportunity cost (Minimum 5 lines) 3) Find the equilibrium price and quantity, the consumer surplus, producer surplus, and total surplus in the market represented by the following equations ( Pd=10-2Qd Ps=2+2Qs
The figure to the right illustrates the market for apples in which the government has imposed a price floor of $14 per crate. How many crates of apples will be sold after the price floor has been imposed? 14 million crates of apples per year. (Enter your response as an integer.) Will there be a shortage or surplus? If there is a shortage or surplus, how large will it be? There will be a surplus of 18 million crates of apples per year. (Enter your response as an integer.) Will apple producers benefit from the price floor? O A. Apple producers who are able to sell their apples at the $14 price per crate will benefit. O B. Apple producers who are not able to sell their apples will not benefit. O C. Total revenue for apple producers as a group will decrease from $220 million to $196 million. O D. Both a and b. O E. All of the above. Price 20- 18- 16- 14 12- 10- 8- 6- 4- 2- 0- 0 Supply Demand 4 8 12 16 20 24 28 32 36 40 Quantity (millions of crates per year)
Question 3: Suppose the market for cell phones can be represented by the following demand and supply equations: = 3000 –P Q = P – 200 2 Find the free market 1) equilibrium price, 2) equilibrium quantity, 3) consumer surplus, 4) producer surplus, and 5) total surplus.
Refer to the figure entitled "Market for Meds". If a price ceiling is imposed at $4, what will be the change in consumer surplus? Price (in $) 10 8 2 0 0 10 Market for Meds 20 30 Quantity 40 So Do 50 1) Consumer surplus will fall by 2.5. 2) Consumer surplus will increase by 2.5. 3) Consumer surplus will decrease by 17.5. 4) Consumer surplus will increase by 17.5. 5) None of the above. 60