Calculate the loss in consumer surplus

Assignment Help Business Economics
Reference no: EM131101439

The supply and demand curves for corn are as follows: QD = 3,750 - 725P QS = 920 + 690P, where Q = millions of bushels and P = price per bushel. a. Calculate the equilibrium price and quantity that would prevail in the free market. b. The government has imposed a $2.50 per bushel support price. How much corn will the government be forced to purchase? c. Calculate the loss in consumer surplus that would occur under the support program.

Reference no: EM131101439

Questions Cloud

Complicated by introduction of new financial products : The economic and financial crisis from 2008 to 2009, also known as the global financial crisis, was considered to be the worst financial crisis since the Great Depression. The general situation at financial markets has been additionally complicated b..
Does the doctor practice price discrimination : A small isolated town has one doctor. For a 30-minute consultation, the doctor charges a rich person twice as much as a poor person. Does the doctor practice price discrimination? Can the town doctor continue to practice this way if another doctor op..
What is the current market value of the school bond : School has issued a new bond, facedd at $1000, maturing in 20 years. It pays interest semi annually, at 8% nominal. The nterest rate of similar School bonds has decreased to 6%. What is the current market value of the School bond.
Calculate the loss in consumer surplus : The supply and demand curves for corn are as follows: QD = 3,750 - 725P QS = 920 + 690P, where Q = millions of bushels and P = price per bushel. Calculate the equilibrium price and quantity that would prevail in the free market. Calculate the loss in..
Replace its grape pressing machine : The Whine not winery (WnW) must replace its grape pressing machine. 2 companies have submitted bids, KS and SM. The annual operating costs of both increase at 12% per year and the WnW uses a MARR of 9%. KS's first cost 350k, initial annual operating ..
Calculate the loss in consumer and producer surplus : The demand and supply functions for pizza in the local market are: QD = 20,000 - 833P and QS = 5,000 + 417P. Calculate consumer and producer surplus in this market. If the minimum wage is increased by $2 per hour, the new market supply curve becomes:..
Short-run and long-run aggregate supply left : Which of the following shifts both short-run and long-run aggregate supply left?
Examples of organizational adaptation : All of the following are examples of Organizational Adaptation EXCEPT.

Reviews

Write a Review

 

Business Economics Questions & Answers

  What is the inter pretation of the slope

In a two year setting Rod has earnings of $ 8 000 this year and earnings of $ 25, 0 00 next year. He can borrow or lend at an interest rate of 25%. Draw his budget line including endpoints. What is the slope of the budget line? What is the inter pret..

  Individual activity doesnot affect interstate commerce

If an individual activity doesn't affect interstate commerce, but the aggregate of that activity does, federal commerce jurisdiction exist under the:

  Research on recent actions on the part of federal reserve

Do some outside research on recent actions on the part of the Federal Reserve. The Fed is essentially responsible for monetary policy. Describe the functions of the Fed and why manipulation of the money supply has been such a prominent tactic over th..

  Select a usa from the index also bring in additional source

Select a USA from the Index also bring in additional source material to Explicate its ranking also Explain how it has changed over the last 5-10 years.

  Individual is considering two investment projects

Project B will return a profit of $2.00 of conditions are poor, a profit of $3.00 if conditions are good and a profit of $4.00 if conditions are excellent. The probability distribution of conditions is as followed.

  Business-to-business e-commerce is electronic transactions

Business-to-Business e-commerce (e-B2B) is the electronic transactions conducted between businesses. Compare and contrast the various e-B2B models, types of B2B transactions, and B2B partnerships.

  Find out equilibrium cost and quantity

Find out equilibrium cost and quantity. Illustrate on your graph how a rise in cost of automobiles would affect gasoline market.

  Why should this policy be undertaken at some gdp level

Why should this policy be undertaken under conditions where economy is at some GDP level less than full employment level? You may use a long run aggregate supply curve to bolster your argument here.

  Calculate contribution margin of the product

Ann Page Corporation has fixed expenses of $30,000 per year. Variable expenses per unit are $17. Sales price per unit is $30.

  What is value of perfect information about state of your leg

You're a sprinter, and in practice today you fell and hurt your leg. An x-ray suggests that it's broken with probability 0.2. Your problem is whether you should participate in next week's tournament. What is the value of perfect information about the..

  Least the possibility of a swing back toward populism

The very recent past in Latin America suggested at least the possibility of a swing back toward populism. Research this question and decide whether current populism in Latin America is similar to past populist movements, especially by comparing econo..

  Most likely lead to an increase in the supply

Which of the following would most likely lead to an increase in the supply of U.S. Dollars to the foreign exchange market?

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd