Estimate consumer and producer surplus before quota

Assignment Help Business Economics
Reference no: EM1367461

Q. Market demand and supply functions for imported beer are: Qd = 4, 800 - 40P and Qs = -1, 200 + 20P. To encourage consumption of domestic beer (such as from new Fort Collins brewery in question 6 above), Congress has imposed a quota of 600 units of imported beer.

a. Estimate aggregate consumer and producer surplus before quota.

b. Estimate new consumer and producer surplus after quota.

c. Estimate deadweight loss from quota.

Reference no: EM1367461

Questions Cloud

Write program to compute the volume flow rate : Write program to compute volume flow rate in cubic feet per second of water flowing through pipe of diameter d in inches and a velocity of v feet per second.
Calculate expected gdp growth : The firm produces a global positioning system that sells for $1,000 with costs of goods sold of 48 percent of sales. Compared to the US, China offers a 6 percent cost reduction
Demand function-profit fuction : Determine Acme's total profit function. Assuming that Acme is effectively able to charge different prices in the two markets, what are the profit-maximizing price and output levels for the product in the two markets? What is Acme's total profit und..
Calculate an approximate cross cost elasticity of demand : Calculate income elasticity of demand for both X and Y at that point. Calculate an approximate cross cost elasticity of demand for Y when Px changes from 5 to 6.
Estimate consumer and producer surplus before quota : Estimate aggregate consumer and producer surplus before quota. Estimate new consumer and producer surplus after quota.
Explain specific challenges of facing designer : Explain specific challenges of facing the designer, specifically with regard to limitations of hardware, software and interface design two paragraph each.
Examples of a medical office implementing ehr : Research and provide examples of a medical office that has implemented EHRs. How has it helped them? Has it created any negative aspects.
Determine the growth rate of real gdp : Suppose last year's real GDP was $7,000 billion, this years nominal GDP is $8,820 billion, and GDP-deflator for this year is 120. Determine the growth rate of real GDP?
Explain leaf of b tree which holds a sublist : Artificially small example of B+ tree is shown here (pdf). (Note only part of tree is shown in detail.) What nodes of example B+ tree are visited to find posting list for "dune"?

Reviews

Write a Review

 

Business Economics Questions & Answers

  Explain why the government might impose a floor

At the beginning of your answer be sure to explain what a price floor is, explain why the government might impose a floor, and who it is intended to benefit.

  Catching red stubble immediately cover their costs

The average price of red stubble is about $8 per kilo also the fisher people's revenues for catching red stubble immediately cover their costs.

  What would happen to the amount of economic investment

What would happen to the amount of economic investment made today if firms expected the future returns to such investment to be very low.

  Elucidate how an increased federal budget deficit resulting

Elucidate how an increased federal budget deficit resulting from a recession can actually help stabilize an economy.

  What are the josephs demands for roses also tulips

Illustrate what are the Joseph's demands for roses also tulips as a function of prices also income.

  Illustrate what can you say about price elasticity of demand

illustrate what can you say about the price elasticity of demand for DVD players. Will this price reduction necessarily lead to an increase in profits for DVD player manufacturers.

  Compute demand of price elasticity

Compute demand of price elasticity of for natural gas sold to the US.

  Explain why are librarians so poorly paid in comparison

If we accept the conclusion that librarians are more vital to the country than professional football players, explain why are librarians so poorly paid in comparison.

  Economy reaches balanced growth equilibrium

Which of the subsequent is always true after an economy reaches balanced growth equilibrium.

  What supply curve of turkeys shifts leftward

What supply curve of turkeys shifts leftward. Tthe demand curve for turkeys shifts leftward ?neither the demand curve nor the supply curve shift; instead there is a movement along both curves.

  Explain how much profit will the perfectly competitive firms

Explain how much profit will the perfectly competitive firms earn. Explain how much profit will the monopoly firm earn.

  Firm that holds a global monopoly

Business firm that holds a global monopoly on a particular product but is currently selling the product only in its domestic market where its profits are substantial.

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