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QX = 100 - 0.4PX
QX = 40 + 0.2PX
a. At what price level would demand for good X equal zero?
b. At what price level would supply of good X equal zero?
c. What is the equilibrium market price for product X?
d. What is the equilibrium quantity demanded and supplied
e. Government imposes a price floor of $120. Analyze the impact of this floor on price, quantity demanded and supplied. Would this price floor create a surplus or deficit of this product in the market?
The change in consumer surplus (?CS) is not "theoretically" justifiable like the CV and EV but it continues to be the most widely used measure of consumer welfare change. Explain how this can be reconciled
Determine the cost to the government of buying firms unsold units
Examine the key factors affecting the demand for and the supply of a good or service
Estimated regression equation for which quantifies the demand for Widget
This document contains various important questions and their appropriate answers in the subject field of Economics.
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Profits associated with polluting for Friedman Inc. are π = 40Q - 2Q2, where Q = pollution emitted (in tons), and profits are measured in dollars.
The vertical long run AS curve compatible with classical economics implies that AD only determines the price level
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