Consider a perfectly competitivemarket with inverse market supplyP=5+3Q^s and inverse market demandP=50-2Q^d. Suppose the governmentsubsidizes this market with a subsidy of$5 per unit. What is the deadweightloss resulting from the subsidy?a) 0, subsidies do not have adeadweight lossb) 2.5c) 5d) 7.5

A subsidy is an amount paid by the government to the buyer/seller in order to increase the quantity…

Answered: Consider a perfectly competitive market…

Principles Of Marketing

17th Edition

ISBN:9780134492513

Author:Kotler, Philip, Armstrong, Gary (gary M.)

Publisher:Kotler, Philip, Armstrong, Gary (gary M.)

Chapter1: Marketing: Creating Customer Value And Engagement

Section: Chapter Questions

Problem 1.1DQ

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Coca Cola in Turkey manages its products' inventory at Shell gas stations, that is Coca Cola, decides replenishment time and the order quantities for all its products. Shell sends real-time sales data of Coca Cola products at its gas station stores and as part of this agreement Coca Cola gives a certain percentage discount in the prices it charges to Shell. Based on what we learned in class, choose the correct statement(s): O a. Because Shell owns the stores it is more likely to make better forecasts of the demand for Coca Cola products Ob. This agreement is a strategy to reduce the bullwhip effect Oc. The main purpose of VMI is to reduce lead time in supply chains O d. This is known as vendor-managed inventory (VMI)
Suppose that an employee at a coffee shop is willing to work 30 hours per week when she is paid $10.00 per hour. When she is offered a raise to $16.00 per hour, she is willing to work 40 hours per week. Her price elasticity of supply is (Note: use the midpoint method and give your answer to two decimal places.)
Find the consumer and producer surpluses by using the demand and supply functions, where p is the price (in dollars) and x is the number of units (in millions). Demand Function Supply Function p=670 23x p= 44x consumer surplus $ producer surplus $ X X
1. If planned investment (I) rises by 20 initially and continues at this higher level, then increasing output by 20 will not restore equilibrium. Explain the reason?
5. On October 25 2015, one Euro traded for 1.106 US dollars, and thus one Us dollar traded for 0.942 Euros. If 0.942 is marked on the vertical axis of the diagram depicting equilibrium in the Euro-US dollar market, what should be measured on the horizontal axis? O. The quantity of US dollars, that is traded for Euros. O. The quantity of Euros, that is traded for all other currencies. O. The quantity of US dollars, that is traded for all other currencies. O. The quantity of Euros, that is traded for US dollars.
Suppose a farmer is a price taker for soybean sales with cost functions given by the following:TC = 0.197 +29 + 30MC = 0.2q +223. The firm's supply curve is given by? a) q = 5 P-10b)9 = 0.2P+2c)9 = 10P-2d) q = 2P-524. If P = 6, the profit - maximizing level of profits isA)$10 b) $20. c)$30. d) - $10.
Answer the questions below using) the figure. What happens to US dollar if demand shifts to D? What happens to British pound if demand shifts to D? If it is a fixed regime and demand shifts to D' what us bank must do?.

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