Consider the market for milk in Saskatchewan. If p is the price of milk (cents per litre) and Q is the quantity of milk (millions of litres per month), suppose that demand and supply curves for milk are givenby the following.Demand:Supply:p=240-25Qºp=10+25Qa. Assuming there is no government intervention in this market, what is the equilibrium price and quantity?The equilibrium quantity is 4.6 millions of litres. (Round your response to one decimal place.) The price is 125 cents per litre. (Round your response to the nearest cent.) The monthly revenue for milkproducers without government intervention is $ 5.8 million(s) of dollars. (Round your response to one decimal place.)b. Now suppose the government guarantees milk producers a price of $2.25 per litre (that is, 225 cents per litre) and promises to buy any amount of milk that the producers cannot sell. What is thequantity demanded and the quantity supplied at this guaranteed price?The quantity demanded at the guaranteed price is ☐ million(s) of litres. (Round your response to one decimal place.)

Explanation of SolutionPart (a)Identify Demand and Supply Equations:Demand: p=240−25QDSupply:…

Answered: Consider the market for milk in…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

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10. Price controls in the Florida orange market The following graph shows the annual market for Florida oranges, which are sold in units of 90-pound boxes. Use the graph input tool to help you answer the following questions. You will not be graded on any changes you make to this graph. Note: Once you enter a value in a white field, the graph and any corresponding amounts in each grey field will change accordingly. Graph Input Tool Market for Florida Oranges 50 I Price (Dollars per box) 45 Supply 20 40 Quantity Demanded (Millions of boxes) Quantity Supplied (Millions of boxes) 486 360 35 30 25 20 bemand 15 10 5 90 180 270 360 450 540 630 720 810 900 QUANTITY (Millions of boxes) PRICE (Dollars per box)
18-19. In the competitive market for white sugar, consumer demand is given by P=100-0.050 and suppliers' behaviour is represented by the supply curve of P=1+0.005Q, where P is measured in dollars and Q is measured in kilos per month. Questions 17 through 19 refer to this market. 18. Imagine now that the government imposes a price ceiling of $5.00 per kilo on sugar, and that the ceiling is obeyed by all market participants. In the resulting equilibrium the total number of kilos of sugar exchanged in the market is equal to: A) 2100 G) 800 B) 2000 H) 600 A) $5 G) $70 C) 1900 I) 400 B) $10 H) $80 19. Suppose suppliers obey the price ceiling but consumers sell sugar on a black market. What will the black market price for sugar be? D) 1400 E) 1200 J) None of the above C) $10.50 I) $21 E) $50 F) 1000 D) $40 J) None of the above F) $60
Given the chart below, what is the equilibrium price and quantity? Market for Bottled Water $4 $2 30 60 90 120 Quantity (In Thousands) Provide your answer below: a = thousand, p = $ per gallon Price per Gallon
Suppose that the demand and supply curves for green peas are given by QD = 10 – 8P and QS = 2P, where P is the price per pound and Q is measured in thousands of pounds. If the price per pound of peas is $0.50, the market _____, so the price will _____. has excess demand of 3,000 pounds; rise has excess supply of 1,000 pounds; fall is in equilibrium; remain unchanged has excess demand of 5,000 pounds; rise
If equilibrium price increases while equilibrium quantity decreases, then we know that: market demand has decreased. market demand has increased. market supply has decreased. market supply has increased.
Price (dollars per pound) $21 18 15 13 11 0 40 $200 $100 $800 $60 80 Supply Demand Quantity (pounds) Figure 4-4 shows the market for tiger shrimp. The market is initially in equilibrium at a price of $15 and a quantity of 80. Now suppose producers decide to cut output to 40 in order to raise the price to $18. What is the value of deadweight loss when the quantity is cut and the price rises to $18?
Please refer to the background information below to answer the following three questions. Consider the following supply and demand schedule of chocolate. Price ($ per unit) Quantity Demanded (units) Quantity Supplied (units) 295 95 120 40 45 270 245 50 55 60 145 170 195 220 195 65 70 170 220 145 245 75 120 95 270 295 80 85 70 320 90 45 20 345 95 370 33. Suppose initially the chocolate market is in an unregulated equilibrium. If the government imposes a tax of $10 for cach unit of the chocolate sold, the new equilibrium price paid by the consumers will be $[ Answer33 ]. 34. Given the above information, the government's tax revenue will be $[ Answer34 ]. 35. Suppose initially the chocolate market is in an unregulated equilibrium. If the government imposes a subsidy of $10 for each unit of the chocolate sold, the new equilibrium quantity would be [ Answer35 ] units.

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