Question 1Suppose the market demand and supply equations for Face masks are given by:Market Demand: P = 400 - 4QMarket Supply: P = 4Qa.Find the equilibrium price and quantity in this marketb. What is the value of consumer surplus in this market?c. What is the value of producer surplus in this market?d. What is the value of the social surplus in this market?e. Suppose the government imposes a price ceiling of Gh150, what will happen in this marketf. Graph the demand and supply functions showing the price and its effects.g. Suppose the price elasticity of demand is 2, what will be the percentage change in pricethat will elicit a 25% change in quantity demanded?h. Calculate the price elasticity of demand at the equilibriumi.The aim of every firm is to maximize total revenue, as the marketing manager of thiscompany, would you advise that the price of your company's products be increased?Explain your answer.j. Your company and other firms in this industry expect the price of face masks to fall in thenear future, With the aid of a diagram, explain the effect of this on the equilibrium priceand quantity found in (a).

Question 1 Suppose the market demand and supply equations for Face masks are given by: Market Demand: P = 400 - 4Q Market Supply: P = 4Q a. Find the equilibrium price and quantity in this market b. What is the value of consumer surplus in this market? c. What is the value of producer surplus in this market? d. What is the value of the social surplus in this market? P Suppose the government imposes a price ceiling of Gh150 what will happen in this market

Question 1 Suppose the market demand and supply equations for Face masks are given by: Market Demand: P = 400 - 4Q Market Supply: P = 4Q a. Find the equilibrium price and quantity in this market b. What is the value of consumer surplus in this market? c. What is the value of producer surplus in this market? d. What is the value of the social surplus in this market? P Suppose the government imposes a price ceiling of Gh150 what will happen in this market

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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