Find the equilibrium price and quantity in this market

Assignment Help Microeconomics
Reference no: EM13690239

Consider a market characterized by the following inverse demand and inverse supply functions:

Inverse Demand: P = 10 - 2Qd Inverse Supply: P = 2 + 2Qs

a. Find the equilibrium price and quantity in this market.

b. Compute the surplus received by consumers and producers.

c. Find the equilibrium price and quantity in this market.

d. Suppose the government decides to impose a price ceiling of $4. Computer the surplus received by consumers and producers.

e. Calculate the dead-weight loss to society imposed by this price control.

f. Explain who benefits from the price control and who worse is off.

Reference no: EM13690239

Questions Cloud

The investment or government spending multiplier : Does a decrease in the magnitude of the MPS have the effect of increasing, decreasing, or not changing the size of autonomous spending multipliers (that is, the investment or government spending multiplier)?
Assuming that everything else remained unchanged : Using the circular flow model (inner-tube), what would be the effect of an increase in exports, assuming that everything else remained unchanged?
The economy currently is experiencing inflation : This is all the data you have: The CPI today (at any point in time--whenever "today" may be) stands at 228.5, this should be interpreted to mean that:
What policies should the us pursue to reduce this pollution : When firms in Mexico cause pollution that crosses the border, U.S. residents along the border are damaged. That pollution is an external cost, since the US residents have no way to extract payment for damage from the Mexican polluters. What policies ..
Find the equilibrium price and quantity in this market : Consider a market characterized by the following inverse demand and inverse supply functions: Inverse Demand: P = 10 - 2Qd Inverse Supply: P = 2 + 2Qs. Find the equilibrium price and quantity in this market.
Why do consumers bear a cost from that monopoly : A patent gives a firm a monopoly in the production of the patented good. While monopoly profits provide an incentive for firms to innovate, the monopoly power imposes a cost on consumers. Why do consumers bear a cost from that monopoly?
Result of output expansion in a decreasing-cost industry : Normal 0 false false false EN-US X-NONE X-NONE MicrosoftInternetExplorer4 ..
Monopolistically competitive industry due to economic losses : Normal 0 false false false EN-US X-NONE X-NONE MicrosoftInternetExplorer4 ..

Reviews

Write a Review

 

Microeconomics Questions & Answers

  What would the costs of each action be

Sometimes market activities (production, buying, and selling) have unintended positive or negative effects outside the market's scope. These are called externalities. As a policy maker concerned with correcting the effects of gases and particulate..

  An excise tax of 100 per gallon of gasoline placed on the

an excise tax of 1.00 per gallon of gasoline placed on the suppliers of gasoline in a market with downward sloping

  Compute opportunity loss or regret matrix which decision

sampb manufacturing inc. a manufacturer of packaging products is attempting to select a short run strategy which

  Explain a real sexual harassment issue

In your role as new human resources manager, you plan to make a series of videos with various situations. These situations will allow the workers to view real life sexual harassment issues that they may have to deal with.

  Why congress cant create purchasing power out of thin air

Proponents of government spending claim that it provides public goods that markets generally do not, such as military defense, enforcement of contracts, and police services. Standard economic theory holds that individuals have little incentive to ..

  Us interest rates rise compared to rest of world draw what

u.s. interest rates rise compared to the rest of the world. draw what happens in the exchange rate market. what happens

  How would you characterize your demand for health insurance

How would you characterize your demand for health insurance — elastic or inelastic? Does the price elasticity of health insurance vary with age, ethnicity, gender, etc.? Does it vary depending on the type of medical procedure needed

  Rise in incomes will affect the demand for computers

Explain how a rise in incomes will affect the demand for computers, describe any assumptions that you have to make to give your answer.

  How can two countries both be better off as result of trade

how can two countries both be better off as a result of trade? how can tariffs protect u.s. jobs? do tariffs lead to a

  Explain how high entry barriers into market will affect

you have been hired as a consultant by your local mayor to look at the various market structures. your role is to

  Determine net interest payments

Organize the above data into the appropriate categories for the current and capital accounts; determine the current account balance, the capital account balance, and the official settlements account balance.

  Estimate the performance and importance of each partys

the republican and democratic national conventions have concluded. evaluate the performance and significance of each

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