Assume the market for Milk in Kenya has a supply function of the form X³= 62.5X-12.5 and a demand function of the form Xd= -50X+550. What is the producer surplus in this market?
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- The inverse demand function is p = 10q, where q is the number of units sold. The inverse supply function is defined by p = 2 + q. A tax of $2 is imposed on suppliers for each unit that they sell. After the tax is imposed, the equilibrium quantity with taxes is. 0 1 07 O 3 04 09Consider a perfectly competitive market with inverse market supply P = 5 + 3Q⁹ and inverse market demand P = 50 - 2Qd Suppose the government subsidizes this market with a subsidy of $5 per unit. What is the impact on the government's budget resulting from the subsidy? O-300 O-270 -45 O-50Suppose that a market is described by the following supply and demand equations: Qs = 2P 2D 240-P The equilibrium price in this market is [ $80, and the equilibrium quantity is 160 units. Suppose that a tax of 7 is placed on buyers, so the new demand equation is as follows: Qo 240 (P+T) The new equilibrium price is 240+T, and the new equilibrium quantity is The price received by sellers. , the price paid by buyers , and the quantity sold
- 10. Let (inverse) demand be Pb = 93 - 5 Qb and (inverse) supply be Pv = 23 + 2 Qv. What quantity will sellers sell if the market is competitive? Answer: your answer Price ($) $100 $90 $80 $70 $60 $50 $40 $ 30 $20 $ 10 $0 0 2 4 Demand CO Submit 6 8 Supply 8 C 2 10 Quantity 12 Eqm 14 16 18 20Given the supply - demand function of printers in Vietnam as follows: Sx = -20000 + 250P Dx 160000-350P Knowing that Vietnam is considered a small country, the price of a printer on the world market is $120/piece. a. If the Government of Vietnam levies an import tax of 25% on this item, calculate the loss to domestic consumers. How much is the import tax revenue from the Vietnamese government's printer products in this case? b. Due to the commitment to integration, the Government of Vietnam applies an import tax rate of 12.5% for printers, calculate the change in the import tax revenue of the Government of Vietnam. c. To ensure that there are no more imports, what is the minimum tax rate that the Vietnamese government should set?Assume that producers in Luzon can only produce 11 billion kg of palay at the time ofharvest even if price reaches PhP 30 per kg, what will be the value of their own priceelasticity of supply?
- Demand: D(p) = 2110- 7p Supply: S(p) = 23p - 500 a) First, assume that no caxes are imposed. Find the equilibrium price and quantity. Price= $ Quantity = 9. b) Now assume a specific tax of $8 per unit is imposed on suppliers. Find the new equilibrium price and quantity. Price = $ Quantity = 8. c) What portion of the tax is paid by the consumer and what portion of the tax is paid by the producer? Consumer pays $ esc Producer pays $ 9. d) How much tax revenue is generated for the government? Tax revenue = $ ! 7 :9 4 FI 2 9,262 F2 # 3 20 F3 DOD $ 4 F4 % 5 FS MacBook Pro *** A 6 e tv A F6 ◄◄ & 7 F7 ► 11 * O FB F9 Instructions ^ F10 FI OConsider the following demand and supply function of product ZT: Qd = 25 - 1.25 P Qs = -9 + 3 P Note: Determine the equilibrium point first to answer the following question. 3. How much is the producer surplus, with out sales tax? Use a number, 2 decimal values, no commas, no space, no signs. * 4. What is the equilibrium point? * a. (15 , 8 ) b. (8 , 15) c. (8 , 25) d. (15 , 21)180-- Supply W QUANTITY (Units) For each of the regions, use the midpoint method to identify whether the supply of this good is elastic or inelastic. Region Elastic Inelastic Between Y and Z Between W and X True or False: For high levels of quantity supplied where firms have reached near maximum capacity, supply becomes more elastic because firms may need to invest in additional capital in order to increase production further. O True O False PRICE (Dollars per unit)
- 2.40 2.00 1.60 1.20 0.80 0.40 0 600 O1200 12000 13000 14000 15000 Supply Demand 16000 If a price ceiling of $0.80 is imposed on this market, what is the dead weight loss? O 400 800Y7 1- One Suppose P=8-0.2q in each of the two periods MC in each of the two periods =$4 Supply of the resource is 20 units a)Calculate the Dynamically efficient allocation of this depleted resource over the two periods if the discount rate is 10% b)Calculate marginal user cost in each period 2- Consider the inverse demand functions for two users of water A and B User A P=8-0.2 qA User B P=8-0.2 qB If the marginal cost of providing water is constant and equal to $2 and the supply of water is equal to 30 units, solve for the statically efficient allocation of water among the two usersLet demand and supply be given by, Qa806-2P, Qs = -33 + 14P. - If a tax is levied on consumers, price for the good. about half none very little most of the tax will be passed on to suppliers in the form of a lower