Calculate the equilibrium price and quantity, Macroeconomics

2184_Market for good X.png

Question 1: What is the equilibrium price and quantity?

Question 2: How do you describe the market situation, if the market price is higher than the equilibrium price?

Question 3:The government imposes a price ceiling of $1.20/unit. Calculate the surplus (shortage).

Question 4: The government imposes a price floor of $1.50/unit. Calculate the surplus (shortage).

Question 5: If the government imposes a quota of 5000units, calculate the supply price, the demand price, the quota rent, and the deadweight loss to the society.

Question 6: The government decides to tax the good X at a rate of $0.30/unit and collect that tax from the consumers, calculate the price paid by the consumers, the price received by the producers, the tax revenue, and the deadweight loss to the society. Calculate the incidence of tax. By using the elasticity of demand and supply comparison, explain why consumers (producers) are paying more tax than the producers (consumers).

Question 7:The government decides to tax the good X at a rate of $0.30/unit and collect that tax from the producers, calculate the price paid by the consumers, the price received by the producers, the tax revenue, and the deadweight loss to the society. Calculate the incidence of tax. By using the elasticity of demand and supply comparison, explain why consumers (producers) are paying more tax than the producers (consumers).

Posted Date: 3/16/2013 6:23:47 AM | Location : United States







Related Discussions:- Calculate the equilibrium price and quantity, Assignment Help, Ask Question on Calculate the equilibrium price and quantity, Get Answer, Expert's Help, Calculate the equilibrium price and quantity Discussions

Write discussion on Calculate the equilibrium price and quantity
Your posts are moderated
Related Questions
How has the Internet revolution affected the workings of businesses, consumers, and government in a free market economy? Specifically, how has Internet affected businesses' ability

Central bank and monetary policy By monetary policy we mean the policy directed at controlling the money supply and the interest rates. In most countries, the central bank is r

compute: credit multiplier, maximum change in the money supply

Interest Rates (R) - I feel that it is important to include a variable which represents the monetary sector of the economy because those inflationary pressures which are expected t

In a city of 120,000 people there are 20,000 Norwegians. What is the probability that a randomly selected person from the city will be Norwegian?


Q. Interest rates and inflation? Assume you have 1 million on 1st January 2008. A basket of services and goods similar to the CPI basket costs 100,000. You can then purchase ex

How much does GDP rise in each of the following scenarios: 1. During a recession, the government raises unemploymemnt benefits by $100 million. 2. A new US airline purchases

Suppose arm's demand curve is given by P = 120? Find the (value of) price elasticity of demand (point elasticity) for the demand curve when the price is $100. Is demand elastic or

What are the difference between explicit cost and implicit cost? Both are concerns to Opportunity Cost and Decisions: An explicit cost is a cost which involves essentially