Chapter4: Demand, Supply, And Market Equilibrium
Section: Chapter Questions
Problem 25P
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![Principles of Economics 2023
HW#2
In each of the following markets find the market equilibrium. Calculate consumer
surplus, producer surplus and total surplus. Then consider the effect of a price floor
(or ceiling) imposed by the government. Find the quantity demanded Qd, quantity
supplied Qs and the corresponding surplus (or deficit) in the market. Find the effect
of the policy on consumer, producer and total surplus.
1 Demand:
Supply:
P = 10 - 1 Q
P = 2 +
1 Q
Price floor = 7
2 Demand:
Supply:
Price floor = 7
P = 10 -
P =
2 +
2 Q
2Q
%3D
3 Demand:
Supply:
P =
6 -
0.5 Q Price ceiling =
P =
2 + 0.5 Q
4 Demand:
Supply:
Price floor = 10
P = 18
P = 3 + 0.5 Q
2 Q
-
%3D
5 Demand:
Supply:
0.5 Q Price ceiling =
P = 14 -
P = 4 +
6 Demand:
Supply:
P = 24 -
3 Q
Price floor = 12
P =
4 +
1 Q
7 Demand:
Supply:
P = 30
P =
0.5 Q Price ceiling = 14
%3D
-
2 +
3 Q
8 Demand:
Supply:
P = 28
P = 3 +
2 Q
3 Q
Price floor = 24
%3D
9 Demand:
Supply:
P = 30 -
3 Q
2 Q
Price floor = 21
P =
5 +
10 Demand:
Supply:
P = 24 -
Price floor = 12
4 Q
1 Q
P =
4 +
11 Demand:
Supply:
P = 60 -
P =
3 Q Price ceiling = 11
4 +
4 Q
12 Demand:
Supply:
P = 20 -
P = 2 + 0.5 Q
4 Q
Price floor = 8
13 Demand:
Supply:
4 Q Price ceiling =
4 Q
P = 10 -
P = 2 +
%3D](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F5e42a2b2-efb8-46eb-8cec-2e3f314c850e%2Fcb52c6a0-89a5-44f6-bd81-fdff6e8032b8%2Fjsguocm_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Principles of Economics 2023
HW#2
In each of the following markets find the market equilibrium. Calculate consumer
surplus, producer surplus and total surplus. Then consider the effect of a price floor
(or ceiling) imposed by the government. Find the quantity demanded Qd, quantity
supplied Qs and the corresponding surplus (or deficit) in the market. Find the effect
of the policy on consumer, producer and total surplus.
1 Demand:
Supply:
P = 10 - 1 Q
P = 2 +
1 Q
Price floor = 7
2 Demand:
Supply:
Price floor = 7
P = 10 -
P =
2 +
2 Q
2Q
%3D
3 Demand:
Supply:
P =
6 -
0.5 Q Price ceiling =
P =
2 + 0.5 Q
4 Demand:
Supply:
Price floor = 10
P = 18
P = 3 + 0.5 Q
2 Q
-
%3D
5 Demand:
Supply:
0.5 Q Price ceiling =
P = 14 -
P = 4 +
6 Demand:
Supply:
P = 24 -
3 Q
Price floor = 12
P =
4 +
1 Q
7 Demand:
Supply:
P = 30
P =
0.5 Q Price ceiling = 14
%3D
-
2 +
3 Q
8 Demand:
Supply:
P = 28
P = 3 +
2 Q
3 Q
Price floor = 24
%3D
9 Demand:
Supply:
P = 30 -
3 Q
2 Q
Price floor = 21
P =
5 +
10 Demand:
Supply:
P = 24 -
Price floor = 12
4 Q
1 Q
P =
4 +
11 Demand:
Supply:
P = 60 -
P =
3 Q Price ceiling = 11
4 +
4 Q
12 Demand:
Supply:
P = 20 -
P = 2 + 0.5 Q
4 Q
Price floor = 8
13 Demand:
Supply:
4 Q Price ceiling =
4 Q
P = 10 -
P = 2 +
%3D
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