HomeworkLib
Question

Additional Problem #3 Quota Given the following Demand and Supply functions: Qd = 500 – 20P            ...

Additional Problem #3 Quota

Given the following Demand and Supply functions:

Qd = 500 – 20P             Qs = 80P – 400

  1. Calculate quantity, price, consumer surplus, producer surplus, total surplus and dead-weight loss at equilibrium.
  2. Calculate quantity, price, consumer surplus, producer surplus, total surplus and dead-weight loss at a quota of 240 units.
business   economics   
0 0
Add a comment Improve this question Transcribed image text
Next > < Previous
Sort answers by oldest

Homework Answers

Answer #1

Qd = 500-2OP ; Qs = sop - 400 At equilibrium QaQ 500-20l = 8op - 100 900 = loop P=9 - Q = soo-2009) = 320 when ad-0, P- 500 -

1 0
Add a comment
Know the answer?
Add Answer to:
Additional Problem #3 Quota Given the following Demand and Supply functions: Qd = 500 – 20P            ...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions

  • Suppose that the demand curve and supply functions are qD = 300−5p and qS = 100+20p,...

    Suppose that the demand curve and supply functions are qD = 300−5p and qS = 100+20p, respectively. (a) On the same graph, draw the demand and supply curves with price on the vertical axis. (b) What is the quantity and price in the equilibrium? (c) Calculate consumer surplus and producer surplus. (d) Suppose the government implements a $5 dollar per unit sales tax. i. Calculate the new quantity and the price paid by the consumer. ii. Calculate the consumer surplus,...

  • Consider the following supply and demand functions qD = 12 - 3p qS = -3 +...

    Consider the following supply and demand functions qD = 12 - 3p qS = -3 + 2p Using the supply and demand functions, suppose a price ceiling of p = 2 were implemented. How much is supplied to the market and how much is demanded? What is the excess demand? Calculate the consumer surplus, producer surplus, and welfare level without the priceceiling. Calculate the consumer surplus, producer surplus, welfare level, and dead weight loss withthis price ceiling. What if the...

  • EXERCISE 4 EQUILIBRIUM The demand curve for a product is given by Qo=400-20P and the supply...

    EXERCISE 4 EQUILIBRIUM The demand curve for a product is given by Qo=400-20P and the supply curve for a product is given by Qs=16P-32 a) illustrate the demand curve and the supply curve on the same graph b) find the equilibrium price and quantity c) find numerical values for the consumer surplus and the producer surplus e) Identify the total willingness to pay for the equilibrium quantity f) identify the total cost of supplying the equilibrium quantity g) draw a...

  • Assume that the supply and demand equations for beer in Canada are: QD = 60 –...

    Assume that the supply and demand equations for beer in Canada are: QD = 60 – 6P QS = 4P – 20 a. Graph the demand and supply equations. b. Calculate the equilibrium price and quantity. c. Label the consumer surplus and producer surplus at the equilibrium. d. Calculate consumer surplus, producer surplus and total surplus at the equilibrium. e. Now suppose a price floor of $9 is implemented. Calculate the shortage/surplus that occurs at this price. f. Label the...

  • The market for rice in a country has the following demand and supply functions: Demand function:                     ...

    The market for rice in a country has the following demand and supply functions: Demand function:                      P = 6 – 0.5QD Supply function:         P = 2 + 0.5QS Where QD is the quantity demanded, QS is the quantity supplied and P is the unit price of rice. Determine the equilibrium price, quantity, consumer surplus and producer surplus in the rice market. Illustrate your answers with a suitable rice market diagram. (8 marks) To help the rice farmers, the government has...

  • Suppose the market demand and market supply curves are given by the equations: Qd= 100-P Qs=...

    Suppose the market demand and market supply curves are given by the equations: Qd= 100-P Qs= 3P a. What are the equilibrium price and equilibrium quantity in the market for this product? b. Find out consumer surplus, producer surplus, and total surplus. c. Suppose the government sets a price floor at $26 for this product. With this price floor, how much is consumer surplus? d. With this price floor of $26, how much is producer surplus? e. Find out total...

  • Suppose the demand equation can be represent as QD = 100 -2P and the Supply equation...

    Suppose the demand equation can be represent as QD = 100 -2P and the Supply equation can be represented as QS = -10 + P. a. Find the equilibrium price and quantity. b. At a price ceiling of $20, what is the QD and QS. What is the deadweight loss, consumer surplus and producer surplus amount?

  • 1 Suppose the demand for shoes is given by: QD= 210 -2P. The supply of shoes...

    1 Suppose the demand for shoes is given by: QD= 210 -2P. The supply of shoes is given by: QS= 9P -120. Calculate the Gains from Trade (also known as Economic Surplus) that would exist in this market in a competitive equilibrium. 2 Suppose the demand for jackets was given by: QD= 140 -0.4P. The supply of jackets is given by: QS= 4P -80. Suppose the price was $49 per jacket. Calculate whether there is a surplus or shortage of...

  • The demand for A product is QD = 150-4P, while the supply is QS = 100...

    The demand for A product is QD = 150-4P, while the supply is QS = 100 + P. What are the equilibrium price and quantity? If a subsidy of $5 per unit is imposed calculate the new equilibrium and the changes is consumer, producer and total surplus.

  • A market demand and supply functions are as follows: Qd = 500 - P/4, and Qs...

    A market demand and supply functions are as follows: Qd = 500 - P/4, and Qs = P/2 - 100. For parts 2-5, use ONE graph. 1. Determine the equilibrium price and quantity. 2. Graph the inverse demand and supply curves with Q on the horizontal axis and P on the vertical axis. Clearly label all axes, curves, intercepts, and the equilibrium price and quantity values 3.Assume the government sets a rule that the selling price cannot go above $400....

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT