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- N2Current Stats for Gasoline: Government Enforced Price Ceiling - $4.50/gallon Current Market Equilibrium - $3.00/gallon OPEC, the largest global supplier of oil used to make gasoline, has decided to reduce output by 50%. This policy change is expected to drive up the cost of gasoline to $5.00/gallon. How does that price change interact with the price ceiling? A. Changes the Price Ceiling from Binding to Non-Binding B. Disrupts Oil Supply C. Changes the Price Ceiling from Non-Binding to Binding D. No ChangePlease answer the first three questions/blanks
- The supply curve for product X is given by QXS = -300 + 10PX .a. Find the inverse supply curve.P = ___ + ___ Qb. How much surplus do producers receive when Qx = 300? When Qx = 800?When QX = 300: $ ___When QX = 800: $ ___The supply curve for product X is given by QX=-380+ 20PX a. Find the inverse supply curve. Pa 10 b. How much surplus do producers receive when Qx=460? When Qx-1,100? When Qx 460: $[ When Qx 1,100: $Suppose a market is described by the following demand and supply curves, respectively: Qd =50−P Qs = 0.5P − 10 (a) Calculate the equilibrium price and quantity.(b) Plot the supply and demand curves on a single graph. (c) Now, supposed the government imposes a price ceiling of $30 in this market. Show, on the same graph in part (b), the effect of this price ceiling. Calculate the equilibrium price and quantity. Is there a shortage or a surplus? Of how many units? What is the full economic price in this market? Show, on the same graph in part (b), the loss of social welfare and calculate the dollar value of this loss.
- Consider a market where supply and demand are given by QXS = -18 + Px and Qxd=84 - 2Px. Suppose the government imposes a units consumers do not buy at the floor price of $39 per unit. price floor of $39, and agrees to purchase and discard any and Instructions: Enter your responses rounded to the nearest penny (two decimal places). a. Determine the cost to the government of buying firms' unsold units. $ 585.00✔ b. Compute the lost social welfare (deadweight loss) that stems from the $39 price floor. $ 25.00question a and bConsider a market in which demand and supply functions are given as Qd = 300-20P Qs =, 20P-100 Calculate the 1 equilibrium price and quantity 2 a price ceiling of rs5 is imposed how does it affect quantity demanded and quantity supplied. Use diagram 3 Distinguish between consumers surplus and producers surplus. With the help of diagram.show how the consumers surplus is determined. (10)
- Ñ2 Consider the following market demand and supply: Demand: P = 13 - 5Qd Supply: P = 6 + 2Qs If the market is at equilibrium, what is the total economic surplus? Note: Express your answer in units of dollars, to at least two digits after the decimal.1. Suppose we have the following demand and supply equations: D(p) 200-p S(p) - 150+ p A. What is the equilibrium price and quantity? B. The government decides to restrict the industry to selling only 160 units by imposing a maximum price and rationing the good. What maximum price should the government impose? C. The government doesn't want the firms in the industry to receive more than the minimum price that it would take to have them supply 160 units of the good. Therefore, they issue 160 ration coupons. If the ration coupons were freely bought and sold on the open market, what would be the equilibrium price of these coupons? D. Calculate the dead-weight loss from restricting the supply of the goods. Will the dead-weight loss increase or decrease if the government would not allow the coupons to be sold on the open market?. Demand, Supply, consumer surplus, Market Equilibrium Price floor. The following relations describe monthly demand and supply conditions in the metropolitan area for recyclable aluminum. QD = 80,000 – 20,000Px (Demand) QS = - 20,000 + 20,000Px (Supply) where Q is quantity measured in pounds of scrap aluminum and P is price in dollars. Answer the following questions: A. What is the condition for market equilibrium? B Calculate the market equilibrium price and equilibrium output? C. What is the inverse demand curve P = f (QD)? D. Compute the consumer surplus at the equilibrium price. E. What is the inverse supply curve P = f (Qs)? F. Compute the producer surplus at the equilibrium price.