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 are the qualitative aspects of development measured? Development includes the evolution of more safe, stable, participatory and only societies. This involves capacity deve

Income and Substitution Effects of a Price Change Indifference curve analysis can be used to separate the income effect (IE) from substitution effect (SE). This is shown in Fig

Q. Important points about the classic model? The most important points about the classic model are as following:  Monetary and fiscal policy can't affect the GDP or unem

Determine the Gross domestic product Gross domestic product is the total value of an economy's domestic output of goods and services. Gross national product is the similar as

Gross Domestic Savings  Income not devoted to current consumption is saved. In an economy during a particular year some units will consume less than their income while some wi


Multiple Expansion We have seen that a single bank in a banking system can lend rupee for rupee with its excess reserves. What is the lending ability of the commercial banking

Under what conditions does the text explain that monetary policy is neutral? If it is neutral under these conditions, why is it still an important economic policy tool? Your answer

1. Describe the process of diffusion in cells (not more than 2 pages). 2. Derive the equation for Fick's second law. 3. Draw a typical FRAP curve and explain its different re

Briefly explain the dynamics of the 2007 financial crisis in terms of adverse selection and moral hazard.