Carrie is willing to pay $1400 for the new Samsung Galaxy phone. Samsung is selling the new Galaxy phone for $1200. It costs Samsung $600 to produce this phone. The total economic surplus if Carrie purchases this phone is $________.
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Carrie is willing to pay $1400 for the new Samsung Galaxy phone. Samsung is selling the new Galaxy phone for $1200. It costs Samsung $600 to produce this phone. The total economic surplus if Carrie purchases this phone is $________.
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- True or False: Suppose you are advising the Dairy Farmers of Canada on changes in the milk market. Suppose the current price is $4.5 per gallon of milk and the quantity demanded is 2.5 million gallons of milk per day. Suppose price elasticity of demand is constant at 0.7. You are considering reducing the supply, so that the price rises to $5 per gallon. Total expenditure on milk by consumers will rise.Problem 1: American Company is interested in obtaining quick estimates of the supply and demand curves for coal. The firm's research department informs you that the elasticity of supply is approximatively 1.7, the elasticity of demand is approximatively -0.85, and the current price and quantity are $41 and 1,206 respectively. Price is measured in dollars per ton, quantity the number of tons per week. a. Find the supply and demand equations b. Calculate the new demand curve if the demand shifted by + 5%. c. If the government refused to let Americans raise the price when demand increased in (b) above, what shortage is created? d. Show the shortage in a graph. Label your graph.A rise in the price of cabbage from $14 to $18 per bushel, caused by a shift of the demand curve, increases the quantity supplied from 4,000 to 6,000 bushels. The elasticity of supply using point formula is ________________
- QUESTION 4 Rachael has bought a rare stamp collection from a philatelic exhibition (an event where people display and sell rare stamps). She can now either sell the stamp collection over the internet for $592 or keep the stamp collection for her own enjoyment. Rachael expects that keeping the stamp collection will provide $762 of enjoyment but will require $187 in new albums so that the stamps can be stored and presented safely. What is the economic surplus (or loss) of Rachael selling the stamp collection? Answer to the nearest whole number (with no decimal places or $ sign. If a loss, include a minus sign).Question 3 Assume the ZRA decides to impose a new tax on imported vehicles priced above K200, 0 00. The new tax calls for a 15% tax on the higher-priced vehicles. However, the new tax al so causes the demand for vehicles to be cut in half from 1000 to 500 to compensate. Th is massive drop in demand has caused the supplier to cut back on supply from 1500 to 1000. Find a) The elasticity of supply and demand. b) If the tax incidence falls more on the supplier or the consumer (Calculate both the consumer and supplier tax burdens).$30. $25. $20. $15. $10.
- Star wars coffee mugs are traded in a competitive world market with a price of R180 per cup. Unlimited quantities are available for import into South Africa at this price. On average 10 000 kg are traded each month. The elasticity of demand has been estimated at -0.81 and elasticity of supply at 3.51. Derive the demand equation for the star wars coffee mug. . . A. Qd = 12 800 - 45P B. Qd = 15 200 - 35P C. Qd = 18 100 - 45P D. Qd = 20 000 - 50P Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.Please just give one answer. I already posted this question and the tutor gave me two different answers. They said it was both option a and c and that's incorrect. Thank youTitle 3) Suppose that the percentage change in demand is 10%, the price elasticity of supply is 2, and the Description 3)Suppose that the percentage change in demand is 10%, the price elasticity ofsupply is 2, and the percentage change in the equilibrium price is 3.33%. Whatis the price elasticity of demand?A)0B)1C)2D)3 4)Suppose that the percentage change in demand is 20%, the price elasticity ofdemand is 3, and the price elasticity of supply is 2. What is the percentagechange in the equilibrium price?A)4%B)5%C)15%D)20% 5)Suppose that the percentage change in demand is 20%, the price elasticity ofdemand is 3, and the percentage change in the equilibrium price is 4%. What isthe price elasticity of supply?A)0B)2C)4D)5 6)Suppose that the percentage change in demand is 20%, the price elasticity ofsupply is 2, and the percentage change in the equilibrium price is 4%. What isthe price elasticity of demand?A)0B)1C)2D)3 7)Suppose that the percentage change in supply is 20%, the price…
- A company is considering building a bridge across a river. The bridge would cost $2 million to build and nothing to maintain. The following table shows the company's anticipated demand over the lifetime of the bridge: Price Quantity (Dollars per crossing) (Thousands of crossings) 8 0 7 100 6 200 5 300 4 400 3 500 2 600 1 700 0 800 If the company were to build the bridge, its profit-maximizing price would be $ ? , and it ( would or would not)? produce the efficient level of output. If the company is interested in maximizing profit, it (should , or should not)? build the bridge because profit would be . (Note: If the company incurs a loss, be sure to enter a negative number for profit.) If the government were to build the bridge, it should charge a price of $ ? True or False: The government should build the bridge. True or FalseSuppose the price elasticity of demand for used cars is estimated to be 3. Demand for used cars __________ . If the price of used cars rises by 10%, the quantity demanded of used cars will go _____________ , and the total revenue will __________________ .Suppose (the numbers are loosely based on reality) that the tax on petrol is raised from 40 cents per litre to 60 cents per litre. The before-tax total cost of retailing petrol is $1.20 per litre. Assume that 100% of the tax is always passed through to consumers. After the increase in taxes, the quantity of petrol sold falls from 3,000,000 litres a day to 2,800,000 litres a day. Calculate the price elasticity of demand for petrol using the mid-point formula, based on the change in price due to the tax. Use three decimal places in your calculations. What are the implications for policymakers who want to raise revenue, when considering raising taxes on petrol?