The Ministry of Misallocation has decreed that the production of widgets must be 7000 each month and the production ofgizmos must be 4000 each month. Calculate the deadweight loss in each market caused by these restrictions. Please notethe scale of the quantity axis is in thousands.Price of widgets$10987654321Price of gizmos$10090SupplySupply807060504030DemandDemand20100012345678910Quantity of widgets (in thousands)What is the deadweight loss in the widgets market?What is the deadweight loss in the gizmos market?2 4 6 8 10 12 14 16 18 20Quantity of gizmos (in thousands)

Deadweight loss is the financial loss occurring due to loss of efficiency in the market. It is the…

Answered: The Ministry of Misallocation has…

Micro Economics For Today

10th Edition

ISBN:9781337613064

Author:Tucker, Irvin B.

Publisher:Tucker, Irvin B.

Chapter3: Market Demand And Supply

Section3.7: A Market Supply And Demand Analysis

Problem 1YTE

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The Ministry of Misallocation has decreed that the production of widgets must be 2000 each month and the production of gizmos must be 14000 each month Calculate the deadweight loss in each market caused by these restrictions. Please note the scale of the quantity axis is in thousands Price of widgets Price of gizmos $10 $100 90 80 70 60 50 9 8 4 3 2 T 0 Supply Demand 1 2 3 4 5 6 7 8 9 10 Quantity of widgets (in thousands) A4,000 in widgets and 180,000 in giamos O88,000 in widgets and 160,000 in gizmos OC 16,000 in widgets and 300,000 in gizmos OD.16,000 in widgets and 320,000 in gizmos OE4,000 in widgets and 360,000 in gizmos 8 8 8 8 8 40 30 20 10 0 Supply Demand 2 4 6 8 10 12 14 16 18 20 Quantity of gizmos (in thousands)
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en hired as an economic consultant by Google and given the lollwrg derrand wedfor wh st Price of Good X (Millions) Quantity Demanded for XQuantity Demanded ta (Millions) 260 240 5. Y Mllions) 200 220 240 10 15 220 20 200 260 Your advice is needed on the following questions: A) Draw the demand and supply curves for the above market. (4 marks) B) Calculate the price elasticity of demand for software X if the price of soltware X increases tom5 millen to 10 mil p t S whether it is elastic or inelastic.(4 marks) C) Calculate the cross elasticity of demand of software Y when the price of X falls from 20 milion lo 10 Mlion hdie between X and Y. (4 marks) D) Draw diagrams for the demand of X. If other things are not constant what will be the impact on the dend D E) Calculate the equilibrium price and quantity demanded and supply of the above market Label the equilm prt be quantity, and the equilibrium price. (4 marks) O Type here to search
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The Krampf Lines Railway Company specializesin coal handling. On Friday, April 13, Krampf hadempty cars at the following towns in the quantitiesindicated: Town Supply of Cars Morgantown 35 Youngstown 60 Pittsburgh 25 By Monday, April 16, the following towns will needthe numbers of coal cars listed: Town Demand for Cars Coal Valley 30 Coaltown 45 Coal Junction 25 Coalsburg 20 Using a railway city-to-city distance chart, the dis-patcher constructs a mileage table for the preceding towns. The result is shown in the table on this page.Minimizing total miles over which cars are movedto new locations, compute the best shipment of coalcars.

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