EBK MICROECONOMICS
5th Edition
ISBN: 9781118883228
Author: David
Publisher: YUZU
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Chapter 1, Problem 1.18P
To determine
Change in
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Your research department estimates that the supply function for high definition televisions (HDTVs) is given by Qxs = 2,000 + 3 Px − 4 Pt − Pw where Px is the price of HDTVs, Pt represents the price of a tablet, and Pw is the price of an input used to make HDTVs. Suppose HDTVs are sold for $400 per unit, tablets are sold for $250 per unit, and the price of an input is $1,400. How many HDTVs are produced?
Suppose that the market demand for Turkey is given by: Q_(T)=2-8P_(T)+2P_(C)+0.0015I Where Q_(T) is annual quantity demanded of turkey in million pounds, P_(T) is the price of turkey per pound, P_(C) is price of chicken per pound, and I is the average household income in dollars per year. a. Find the annual quantity demanded of turkey if the price turkey is $2.00 per pound, price of chicken is $1.50 per pound and the annual household income is $30,000.
The weekly demand for wine in the United States is described by the following equation:
Qd = 45,000,000 - 1,500,000P
where Qd is the weekly quatity demanded in bottles and P is the price per bottle in dollars. The weekly supply of wine in the United States is described by the following equation:
Qs = -5,000,000 + 1,000,000P
where Qs is the weekly quantity supplied in bottles and P is the price per bottle in dollars.
a. What is the equilibrium price and quantity for wine in the US?
Intense lobbying efforts result in the United States government establishing a $5 per bottle excise tax by wine producers.
b. What would be the new equilibirum price and quantity after the imposition of the per bottle excise tax?
c. Determine the total amount of the consumer surplus assuming the market for wine is in equilibrium after the imposition of the excise tax.
Chapter 1 Solutions
EBK MICROECONOMICS
Ch. 1 - Prob. 1RECh. 1 - Prob. 2RECh. 1 - Prob. 3RECh. 1 - Prob. 4RECh. 1 - Prob. 5RECh. 1 - Prob. 6RECh. 1 - Prob. 7RECh. 1 - Prob. 1.1PCh. 1 - Prob. 1.2PCh. 1 - Prob. 1.3P
Ch. 1 - Prob. 1.4PCh. 1 - Prob. 1.5PCh. 1 - Prob. 1.6PCh. 1 - Prob. 1.7PCh. 1 - Prob. 1.8PCh. 1 - Prob. 1.9PCh. 1 - Prob. 1.10PCh. 1 - Prob. 1.11PCh. 1 - Prob. 1.12PCh. 1 - Prob. 1.13PCh. 1 - Prob. 1.14PCh. 1 - Prob. 1.15PCh. 1 - Prob. 1.16PCh. 1 - Prob. 1.17PCh. 1 - Prob. 1.18PCh. 1 - Prob. 1.19PCh. 1 - Prob. 1.20PCh. 1 - Prob. 1.21P
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