The market supply curve of plastic gloves is given by Qs=350,000+10,000P. The demand for plastic gloves can be segmented into two components. The first component is the demand for plastics gloves by domestic buyers. This demand is given by qa=270,000-2,500P. The second component is the demand for gloves by foreign buyers. This demand is given by qB=350,000-20,000P. (a) Derive the total market demand function for gloves. Find the equilibrium market price and quantity. (b) At the equilibrium price, what is the price elasticity of demand? (c) Determine the consumer surplus for each of the component. (d) Suppose that the government guaranteed gloves manufacturer a price of $10.00 for each glove. How many plastic gloves would the government has to buy in order to ensure that all the plastic gloves produced were sold and how much would this cost the government?

The market supply curve of plastic gloves is given by Qs=350,000+10,000P. The demand for plastic gloves can be segmented into two components. The first component is the demand for plastics gloves by domestic buyers. This demand is given by qa=270,000-2,500P. The second component is the demand for gloves by foreign buyers. This demand is given by qB=350,000-20,000P. (a) Derive the total market demand function for gloves. Find the equilibrium market price and quantity. (b) At the equilibrium price, what is the price elasticity of demand? (c) Determine the consumer surplus for each of the component. (d) Suppose that the government guaranteed gloves manufacturer a price of $10.00 for each glove. How many plastic gloves would the government has to buy in order to ensure that all the plastic gloves produced were sold and how much would this cost the government?

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Similar questions

What do you think is the importance of Ethics in your career?
Discuss the ethical principles in business.
QUESTION 6 Money can be saved and used later. True False
Why should you do research when considering buying a different vehicle? to be an uninformed vehicle seller to be an informed vehicle seller to be an informed vehicle buyer to be an uninformed vehicle buyer
Create your own creative ethical principle with a combination of ethical principles in Ethics.
how about the 4,5,6. Please answer. Thanks.
What is the unit contribution margin?
The waste Management faud case What impact did the fraud have on the company? What recommendations would you give the company to prevent fraud?
4. Anentrepreneurintends to sell his product for 6.4$ each. The daily cost or expenses can be expressed as x+9.1+.11x^2, wherexis the no. of product sold daily. Find the no. of products that will maximize the profit per day.
Evaluate the costs and benefits associated with achieving ISO 9000/9001 certification status for a specific product- or service-based company.
Which of the following involve a trade-off? a. Buying a new car b. Going to college O c. Watching a football game on Saturday afternoon O d. Taking a nap Oe. All of the answer choices involve trade-offs. Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.