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Assume that a competitive cell phone market has a demand curve described by the equation
P = 45 − (2)Q and a supply curve described by P = 5 + (2)Q.
(a) What are the consumer and producer surpluses in this market?
(b) What is the deadweight loss (DWL) if a price ceiling is set at Pmax = $19?
(c) Does either the consumer or producer surplus increase with the price ceiling imposed in (b)? Be sure to show your calculations and reasoning.
The inverse demand function for mangos is defined by the equation p = 91 − 5q, where q is the number of crates that are sold. The inverse supply function is defined by p = 3 + 6q. In the past there was no tax on mangos but now a tax of $44 per crate ..
The following are different types of production function. Determine whether each one has constant, increasing or decreasing returns to scale.
Cartman and Kyle are castaways on an island and spend their days picking papayas and mangos. Cartman has a comparative advantage in picking papayas. Kyle has a comparative advantage in picking mangos. use the infinite line tool to draw the linear pro..
The general demand for good X is: Qd = 2500 – 8Px + 0.1M + 12Py. If M = $50,000 and Py = $250, what is the demand function? what is the inverse demand function? fully explain the coefficient for M.
Create a 2.5- to 3-page troubleshooting document that is intended to become part of the internal knowledge base for IT staff members to reference when encountering issues. Your document should identify issues and troubleshooting steps covering the..
Prosper is a website that allows people to solicit loans from other individuals. The lenders can view information about the borrower and the type of loan being solicited. List and explain two ways in which a lender on Prosper differ from a person wit..
Compare and contrast the executive and congressional plans for reconstructing the Union. What was their objective? Which plan was better for the nation? Why?
For several years, Albert acted as a collection agent for Paulette. Recently, Paulette revoked Albert’s authority to collect payments from customers. However, neither Paulette nor Albert told any customers of Albert’s termination. Yesterday, Theresa,..
Personal income and spending: How much has personal income changed in the last two years? Identify any problems the government needs to address, and possible solutions?
The average quality of labor has increased, partly because the demand for education and health care are:
Now assume that once he earns $400 he loses all his food stamp assistance. How does this change his budget constraint.
Assume this is the primary venue for sports games. Decide whether the city government is likely to intervene to enforce antitrust law or not.
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