Under perfect competition, if the market demand function is Qdx = 120-20Px and the market supply function is Qsx = 20Px, what units are the total consumer surplus and producer surplus?
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Q: consumer's surplus
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- Factory orders for an air conditioner are about 4000 units per week when the price is $350 and about 6000 units per week when the price is $325. The supply function is given by p = 0.0875x. Find the consumer and producer surpluses. (Assume the demand function is linear.) consumer surplus $ producer surplus $Given a demand curve of P = 131 - 4Qd and supply of P = 2 + 6Qs, please calculate producer surplus, assuming this is the output marketSuppose there is a downward sloping demand curve that has a y-intercept of 60 and an upward sloping supply curve that has a y-intercept of 8. If the competitive equilibrium Price is 38 and Quantity is 48 what would be the size of the overall total surplus (consumer surplus plus producer surplus) for this market? (Please answer to 2 decimal places as needed) Your Answer: 42 Answer
- given the demand function Pd=25-Q2and supply function Ps = 2Q+1. Assuming pure competition, find the consumer and producer surplus.Find the consumer and producer surpluses by using the demand and supply functions, where p is the price (in dollars) and x is the number of units (in millions). Demand Function: p = 360 - x Supply Function: p = 160 + xSuppose that you are the vice president of operations of a manufacturing firm that sells an industrial lubricant in a competitive market. Further suppose that your economist gives you the following supply and demand functions: Demand: = 50 – 2P Supply: Q° = - 10 +P. What is the consumer surplus in this market? Consumer surplus is $ (Enter your response rounded to two decimal places.) What is the producer surplus? Producer surplus is $ (Enter your response rounded to two decimal places.)
- Suppose a demand function is given by p = 15 + 6000(q+25)-1 and the supply function is given by p = q+20. Find the equilibrium (correct to 1 decimal point) and hence compute either the Consumer Surplus or the Producer Surplus.Consider a competitive market for red lentils with 100 identical farmers in Horsham Victoria, a competitive market price of $5 and the following MC for each farmer: MC = $0.05Q Also consider the following market demand function: QD a) Calculate the optimal level of production (in tonnes) for each farmer (show workings) = = 1000 - 40P b) Assuming 100 lentil farmers of equal size how many tonnes of lentils in total will be supplied in the entire market? (show all workings) c) Consider that the government now imposes a 25% tax on producers, calculate i) the new equilibrium level of output for each firm (hint - think about how this affects each farmer's marginal cost), and ii) new total supply in the entire market (show all workings)When the perfectly elastic supply curve shifts upwards (increase in price), does producer surplus exist? If so, where does it exist
- In a given market three firms compete by choosing quantity simultaneously. The demand schedule is this market is P(Q) = 300 – 2Q. All the firms have the same cost function: C(q) = 140q - 100. (i) What is the equilibrium price, the quantity produce by each firm, the profit earned by each firm and the consumer surplus? Carefully explain your derivation and provide reasoning.In this problem, p is in dollars and x is the numbey of units. If the demand function for a product isp = 9/(x + 1) and the supply function is p = 1 + 0.2x, find the consumer's surplus under pure competition. (Round your answer to the nearest c 24Suppose the demand for pickles on The Citadel is Qd=500-4P, and the supply is Qs=6P. Assume this market is perfectly competitive. How much consumer surplus is created in this market? How much producer surplus?