What is the total cost of this program to the government

Assignment Help Microeconomics
Reference no: EM131019855

Quiz 2-

1. The market for laptops is described by the following supply and demand equations:

Demand: P = 600 - 7Q

Supply: Q = P - 200

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

b) If the government imposes a price floor of $320 in this market, find the size of the resulting surplus.

2. Fill in the blanks below to describe what happens in each market.

a) The New York Times prints an article about a new study which shows that radiation from microwave ovens can be harmful to children.  In the market for microwaves, this will cause the _______________ curve to shift to the _______________.

b) After a long bargaining process, the United Auto Workers union (which provides all labor for car companies) wins a large pay raise.  In the market for automobiles, this will cause the _______________ curve to shift to the _______________.

c) Economists estimate that when the price of popcorn rises, the demand curve for Snickers bars shifts to the left.  This means that popcorn and snickers are _______________ goods.

d) Economists estimate that in wealthier communities, individuals are willing to pay more for clean air.  This means that clean air is a (an) _______________ good.

e) Assume that there is a technological improvement in bullhorn manufacturing at the same time that the government passes a law forbidding the use of bullhorns at night.  In the market for bullhorns, the equilibrium price will _______________ while the equilibrium quantity will _______________.

3. The market for wheat is described by the following supply and demand equations:

Demand: P = 80 - 3Q

Supply: P = 10 + 2Q

a) Assume the government wishes to help farmers by establishing a price support at $50 per bushel of wheat.  If storing wheat is costless, what is the total cost of this program to the government?

b) Now assume that the government decides to help farmers by establishing a price subsidy, guaranteeing farmers a price of $50 per bushel of wheat. What is the total cost of this program to the government?

Reference no: EM131019855

Questions Cloud

Probability of a failing to detect : The n =10 patients had a mean decrease in IOP of = 15.2 mm Hg with a standard deviation of the 10 IOPs equal to s = 9.8 mm Hg after 15 weeks of using the drug. Determine the appropriate sample size for an a α = .01 test to have at most a .10 pr..
Problem for mail-order houses : Improperly filled orders are a costly problem for mail-order houses. To estimate the mean loss per incorrectly filled order, a large firm plans to sample n incorrectly filled orders and to determine the added cost associated with each one.
Estimate the mean time to reimbursement : From a random sample of 50 employees who resigned from the state university system over the past 5 years, the average time between the termination date and reimbursement was 75 days, with a standard deviation of 15 days. Use the data to estimate t..
Investigate claims that raw pollutants : The board of health of a particular state was called to investigate claims that raw pollutants were being released into the river flowing past a small residential community.
What is the total cost of this program to the government : Now assume that the government decides to help farmers by establishing a price subsidy, guaranteeing farmers a price of $50 per bushel of wheat. What is the total cost of this program to the government
Describe the dash diet and the nutrients it targets : What is your risk? At the end of the survey, click on "What Makes Up My Risk." Tell which factors raised and lowered your risk. Fortunately, there is a diet that helps you avoid both osteoporosis AND hypertension - and is probably protective again..
Problem regarding the data contradict the hospital : Do the data contradict the hospital's claimed mean value per inventoried item and indicate that the average is less than $300? Use a = .05.
What is the profit-maximizing quantity in each market : What is the profit-maximizing quantity in each market under 3rd degree price discrimination? What are the prices in each market - Derive the total profit for this monopolist who practices third degree price discrimination.
Name and describe the health service organization : Describe its primary target market in terms of the segmentation variables presented in the Week 4 Overview. You can use the PRISM system or describe it yourself.

Reviews

Write a Review

 

Microeconomics Questions & Answers

  What is the equilibrium price of ticket for this performance

What will happen to the price of tickets to this event if free market forces were allowed to operate? What is the equilibrium price of a ticket for this performance

  What specific tools will fed use to achieve this there are

if the economy faces a recession what type of policy should the federal reserve bank employ? specifically what must

  Removing rough edges

Removing rough edges

  Organized crime continues to change

Organized crime continues to change

  Calculate the net change in producer surplus

The market for Sugar beet is in equilibrium at P = $15 and Q = 229995. The price elasticity of demand is -1. The price elasticity of supply is 0.6. Now assume that the government imposes a quota which reduces supply to 183,996

  1 when a firm is no longer able to reduce its long run

1. when a firm is no longer able to reduce its long run average cost by expanding it has achieved its minimum

  Evaluate impact of online and e-sales elsewhere in leisure

Conduct an opportunities and threats analysis on a named bookseller that operates high-street outlets. Evaluate the impact of online and e-sales elsewhere in the leisure and tourism sector.

  Contribution to the evolution of economic thought

Write a six to eight (6-8) page paper in which you:Analyze each economist's unique contribution to the evolution of economic thought. Support your response with at least two (2) examples of each economist's contributions. Summarize the current econom..

  How many tons of carbon dioxide per year

According to Mr. Gillam, the representative from the power company E.ON UK, European businesses emit about how many tons of carbon dioxide per year?

  What happens to the supply and quantity supplies

Beer and pizza are compliments because they are often enjoyed together. When the price of beer rises, what happens to the supply, demand, quantity supplies, quantity demanded, and the price in the market for pizza.

  Lens of world systems theory

Option One: Using information found in our text, discuss ONE PERIPHERAL or SEMIPERIPHERAL NATION through the lens of World Systems Theory. (Optional: you may also use information from other reputable sources in addition to our text.)

  Saving rate is initially less than golden rule saving rate

Suppose the saving rate is initially less than the golden rule saving rate. We know with certainty that a decrease in the saving rate will cause:

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