Consider a market in which the demand curve is given by P = 9 -0.1Qd, and the supply curve is given by P = 0.2Qs. Suppose the government imposes a price floor of 7 dollars. How much is producer surplus?100○ 4090070Crider a market in which he and by 1-41Selected Answer88Awers010070pics of how much is

Answered: Image /qna-images/answer/617c28f5-6d36-4b97-baf1-b585885ff69f.jpg

Answered: Consider a market in which the demand…

Exploring Economics

8th Edition

ISBN:9781544336329

Author:Robert L. Sexton

Publisher:Robert L. Sexton

Chapter7: Market Efficiency And Welfare

Section: Chapter Questions

Problem 5P

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What is producer surplus? How is it illustrated on a demand and supply diagram?
What is consumer surplus? How is it illustrated on a demand and supply diagram?
In a market where the supply curve is perfectly inelastic how does an excise tax affect the price paid by consumers and the quantity bought and sold?
If the deadweight loss in the market represented by the graph is $1,400, what is the actual economic surplus?
The weekly supply and demand for cupcakes in a small town are given as OS = 30P- 20 and Q = 124 - 18P, where P is the price of a cupcake and Q is measured in thousands per %3D week. a. Find the equilibrjum price and quantity. b. Calculate the corsumer and producer surplus at the equilibrium price.
(a) Show the market for housing in equilibrium on a diagram, where demand is less elastic than supply, andlabel the respective consumer and producer surpluses. Discuss whether this market is Pareto efficient. (b) Assume that the State Government imposes a per-unit tax on the sellers of houses. A new diagram,shows the imposition of this tax on the market for housing. Does the imposition of this tax cause a Paretoimprovement to the market, explain? (c) Is the tax imposed in part (b) effective for the collection of Government revenue? Justify your answer withreference to your diagram in part (b).
•A market has the market supply equation as P = ½Q andthe demand equation as P = 6 ½Q, where P is price indollars and Q is the quantity.•••(a) Solve for the equilibrium price, the equilibrium quantity,the consumer surplus and the producer surplus in themarket. Support your answers with a suitable marketdiagram.•••(b) If there is a price ceiling of $2, compute the consumersurplus, producer surplus and the deadweight loss in themarket. Support your answers with a suitable marketdiagram.
Suppose that last year the equilibrium price and the quantity of good X were $10 and 5 million pounds. Because of strong demand this year, the equilibrium price and the quantity of good X are $12 and 7 million pounds, respectively. Assuming that the supply curve of good X is linear, what happened to producer surplus in the market? A B Producer surplus increased from $12.5 million to $49 million. Producer surplus increased from $12.5 million to $24.5 million. Producer surplus increased from $3 million to $7 million. Producer surplus increased from $4.2 million to $5.6 million. C D
The table below shows the amount three sellers are willing to sell (WTS) for different quantities of large pepperoni pizzas. SellerQuantity of pizzas suppliedWTS for each pizzaPeter4$30Paul8$24Mary4$12 On the diagram below, draw the supply curve for pepperoni pizza.How much total producer surplus do they receive if the price of pizza is $25? $ 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.
Calculate the economic surplus in the market represented by the graph.
What is the equilibrium price in this market? What is the equilibrium quantity in this market? What is the amount of consumer surplus? What is the amount of producer surplus? Suppose the government imposes a $50 per unit tax on the sales of the good. What would be theprice paid by the consumers for the good? With a $50 per unit tax imposed, what would be the price received by the producers? With a $50 per unit tax imposed, what is the amount of consumer surplus? With a $50 per unit tax imposed, what is the amount of producer surplus? With a $50 per unit tax imposed, what is the amount of the tax revenue? What is the amount of deadweight loss? i need all the above questions to be answered. thank you. urgent
The table shows the demand and supply schedules for hay before and during a major drought. During the drought, suppose the government gave all farmers an equal quantity of hay. Resale of hay is not permitted. Suppose the government buys the equilibrium quantity of hay determined by demand and supply during the drought. and the price of a bale Total surplus is pre-drought price. ... OA. maximized; rises OB. maximized; falls OC. less than the maximum possible; falls OD. less than the maximum possible; rises OE. maximized; does not change Suppose the government buys more than the equilibrium quantity of hay and pays the supply price for this quantity. Total surplus purchased, and the price of a bale compared to the compared to the total surplus when the equilibrium quantity is compared to the equilibrium price. OA. increases; falls OB. decreases: falls M OOO = Quantity demanded Price during Quantity (dollars per before drought drought supplied bale) (thousands of bales) 0 70 1.00 2.00…

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